JSWM Volume 4 Number 1
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Journal of Social Welfare and Management Volume 4 Number 1 Jan - March 2012 Institutional Credit Flow for Farm Sector – Share and Pattern of Investment Credit in Udham Singh Nagar in Uttarakhand Arpita Sharma* Adita Sharma** ABSTRACT Institutional fi nance is necessary for rural development. It is the framework of rural development. It is seen that many Governmental schemes launched by the Government for up-liftment of rural poor to achieve the target of employment, are absurd due to delay in implementation and lack of proper monitoring. Rural poor only have meager income for their survival. In these institutions there is necessity of gainful employment of generation having keen interest to serve the rural poor. This will help in expanding institutions’ branches in rural and far fl ung areas, in spite of the problems at credit agency level. Udham Singh Nagar District seems to have better credit delivery system. This study attempts to examine the impact of institutional credit in the rural development of Udham Singh Nagar District. Keywords: Institutional fi nance; rural development; rural poors. INTRODUCTION rural farmers, tenants as well as laborers were given economic support through new agencies of In the post independence period, India has fi nancial institution, such as commercial banks, witnessed a phenomenal increase in every walk co-operative banks, and regional banks. These of life. Though India’s major population lives in intuitions played a vital role in the development rural areas, however, there has been a growing of rural areas. fl ux of rural population to urban areas. Thus, the rural-urban development has been the concern of Rural development is related with rural policy, planner and administration. During British people, rural regions, and, dealing with rule, the rural area almost remained neglected. diffi culties of rural societies. The objectives of The Britishers were primarily concerned with rural development are multi-directional as well areas of industrial development, which centered as multi-dimensional, with aims at increased on urban areas only rural areas were centers of employment opportunities, higher productivity, cottages and village industries and agricultural and higher income, as well as minimum input for which the tenant cultivators as well acceptable lave of foods. as farmers were every dependent on money lenders, sahukars, chetties, and trade for their Todaro (1977) explained development with borrowing. However, in the post independence the help of its three basic elements, viz, basic period, the policy planners emphasized upon necessities of life, self respect, and freedom. rural development and laid stress on various Without these necessities it is diffi cult for development programme. For the purpose the humans to survive. By the time of the fourth Five-Year Plan (1969), the community development programme had Author’s Affi lation: *Doctoral Research Scholar of Agril Comm. College been largely phased out and its name changed to of Agriculture, G. B. Pant University of Agriculture & Technology, Pantnagar – 263145, Uttarakhand, **Postgraduate Student, Dept. of refl ect a new emphasis on rural-over-community Fishery Biology, College of Fisheries, G. B. Pant University of Agriculture development. & Technology, Pantnagar – 263145, Uttarakhand. Reprint’s request: Arpita Sharma Doctoral Research Scholar of The basic goal of development as well as Agricultural Communication College of Agriculture, G.B. Pant University of Agriculture & Technology, Pantnagar – 263145, Uttarakhand. Email- development policy is to improve the conditions [email protected]. under which rural people can work and live. (R i d 04 05 2011 t d 22 05 2011) The Ministry of Rural Development extends 16 Arpita Sharma & Adita Sharma/Institutional Credit Flow for Farm Sector – Share and Pattern of Investment Credit in Udham Singh Nagar in Uttarakhand limited fi nancial assistance to the states to impart and commercial banks are not able to meet all training to create awareness among the elected the planned credit recruitments of the rural representatives of Panchayats and concerned areas. The major objectives of nationalization government functionaries. The ministry has of banks were to bring them under the control been providing fi nancial assistance through the of the government and ensure lending to fulfi ll Council for Advancement of People’s Action social objectives. After nationalization banks and Rural Technology (CAPART) to the non- introduced network in rural areas through government organizations for conducting training branch expansion in the rural and semi-urban. and awareness, research and evaluation studies there was establishment of specialized branches related to Panchayati raj for the development for lending, lead bank scheme, and district to be in consonance with the people’s wishes credit plans (1969), differential rate of interest and aspirations. The emphasis has also been (1972) scheme, village adoption scheme (1974), shifted towards Panchayati Raj institutions. Two and service area approach (1989). Further, RRBS main schemes for providing wage employment (1975) the NABARD (1982) was established to “Swarnjayanti Gram Swarozgar Yojana” (SGSY) take up the role of a leader in the entire rural to rural poor are under way in the rural areas credit system in the country. The banking sector of the country, with the objectives to provide emerged as an important agency in extending additional gain of a durable community along rural development credit. with social and economic infrastructure in rural areas. By merging the ongoing schemes of rural RESEARCH METHODOLOGY development, the programme is targeting for self-reliance with special emphasis to provide The research study was carried out in Udham wage employment to women of schedule caste Singh Nagar District in Uttarakhand. The study and schedule tribe. sample included 50 rural women selected through simple random sampling with chit In fact, the major thrust of the present study is method. Interview schedule and observation to examine the impact of institutional credit in was used to collect data. The collected data the rural development of district Udham Singh were classifi ed, tabulated and analyzed using Nagar. In the present situation, capital and appropriate statistical methods like percentage fi nancial ability are essential components for the and mean scores. development of rural areas, without fi nancial availability it is useless to think about rural and Brief description of Udham Singh Nagar regional development. District Udham Singh Nagar district is located in the Studies reveal that inadequacy of fi nancial southern region of Uttarakhand. The district health in the fi eld of agriculture, animal husbandry, was formed in 1995 by separating some parts rural handicraft, horticulture, etc., has been the of Nainital district. Originally, Buxas and main hurdle in rural development, and one may Tharus inhabited this area. However, during over come this hurdle through fi nancial help by the fi fties, under government patronage and the various agencies of institutional fi nance, such other incentives/schemes, settlers from Punjab, as co-operative societies, co-operative banks etc. eastern and hilly regions migrated to this place. The all Indian rural credit survey committee The district is situated at 28 degree south east, (1951-52) observed that rural credit system was 30 degree north latitude, 78 degree and 81 very short of being the right quality and did not degree east longitude of Kumaon. Nainital is serve the right purpose and often failed to go to to the north; Bijnour, Moradabad, Rampur to the right people. west; Bareilly, Pilibhit to south; and district Champawat is in the east of this district. South However, after nationalization of the east-lies the border of Nepal. Reserved forest commercial banks in the country in July 1969, area lies at the borders of district Nainital and the single-agency approach to rural credit was Champawat. The total district is Tarai. Water is replaced by multi-agencies credit system. It was available at the depth of 10 to 20 metres. Due felt that the institutional fi nance was not available to its special geographical structure, the district to all sections in the rural areas The co-operative leades in agriculture in the country Arpita Sharma & Adita Sharma/Institutional Credit Flow for Farm Sector – Share and 17 Pattern of Investment Credit in Udham Singh Nagar in Uttarakhand The fertile land lends itself to different forms Many freedom fi ghters and military men also of agriculture, giving rise to agriculture related settled down in this area. The total geographical activities and industries, making this land a area of the district is 3,372 sq. kilometres. The green place which has resulted into prosperity population of the district is 10 lakhs (Census, all around. Pantnagar University is leading 2001). The district comprises three main sub- temple of learning in the fi elds of agriculture divisions: Rudrapur, Kashipur, and Khatima, and technology, with one of the fi nest built and is surrounded by the exotic Himalayan universities all around the world. This place has ranges. The tehsils in the district are Kashipur, a rare sightseeing scenory as it is surrounded by Kichha, Khatima, Sitarganj; Bajpur and Garadpur Kumaon Himalayas on one side and Nepal on are sub-tehsils. This district has the reputation of the other (Tanakpur touches the Khatima border being progressive and practicing modernized which is in Champawat district). Nanak Matta agriculture besides having higher land holding. dam, Dronasagar and many other places are worth visiting. Atariya mandir mela and Chaiti Udham Singh Nagar is basically an industrial mandir mela is famous where one can fi nd local district and many industry-related professions folk activities and mingle with local culture and are prevalent here. It is a perfect example of ‘Unity traditions. in Diversity’ for which India is so widely known. On the other hand different cultures, religions, Table 4 exhibited the Uttarakhand being and life styles are blended in absolute harmony. agriculturally dominant state the major portion of credit ie 42.79 per cent was provided to Table 1.