“As when there is fertility of agriculture, till then the entire business flourish, but when the soil is left barren, then consequently all the business virtually dies.”
Sukrat
In countries like India, strengthening agriculture is critical to addressing the challenges of rural poverty, food insecurity, unemployment and sustainability of natural resources. But there is a need to redefine agriculture as a science and study of activities related to the production, processing, marketing, distribution, utilization and trade of agricultural products, which means that agricultural development policy should address not only the farmers but also the marketing and trade, Processing and Agribusiness. In this regard, efficient marketing and rural credit systems attach greater importance. Agricultural marketing is a process that starts with a decision to sell a marketable farm product and involves a market structure or system, both functional and organizational, based on technical and financial considerations. Although agricultural marketing is a state subject, the Government of India has a vital role to play in formulating general policies, formulating quality standards, conducting survey and research studies and providing guidance, technical and financial support to the state governments.
The agricultural sector, known as the primary sector is essential for the economic growth of any economy including India. After independence, agriculture is an important part of India’s economy in the global economy. The sector contributes 15.87% to the gross domestic product (GDP), and employs just a little less than 54% of the country’s work force. Agriculture contributes to 6.4% of the world’s total economic output. India is the second largest producer of agricultural products accounting for 7.39% of total global agricultural production. China is the largest contributor accounting for 19.49% of the world’s total agricultural production.
Agricultural finance (credit) is considered to be the most basic inputs of all agricultural development programs. There is a great need for proper agricultural credit in India because Indian farmers are very poor. From the very beginning, moneylenders were the major source of agricultural credit in India. After independence, the government adopted the credit of agency institutions through cooperatives, commercial banks, regional rural banks, etc., to provide adequate credit to the farmers at low interest rates. Moreover, with the increasing modernization of agriculture in the post-green revolution, the need for agricultural credit has increased further in recent years. The National Bank for Agriculture and Rural Development (NABARD) was established in July 1982. It became a top institution for providing strategic planning and refinancing facilities to rural financial institutions and to increase their resource base. This paper analyses the role and function of NABARD in agriculture and rural development.
KEYWORDS: Agriculture, Agriculture Finance, NABARD, GDP, Development, Apex, Economic Growth.
