Artha Vijnana: Journal of The Gokhale Institute of Politics and Economics

Mrutyunjay Swain ¹, Mamata Swain ²

Affiliations
1 Centre for Management in Agriculture, Indian Institute of Management, Vastrapur, Ahmedabad -380 015, IN
2 Graduate School of Life and Environmental Sciences, University of Tsukuba, 305-8572, JP

Abstract

The paper analyzes the nature of contractual arrangements, interlinkages and imperfections observed in the rural credit market today in drought prone Bolangir district in western Orissa. It examines the differential access of different farmer categories to formal and informal sources of credit, their purpose of borrowing and mode of credit utilization. It tries to trace out the different types of impediments faced by the farmers in . Availing credit from institutional sources and suggests some innovative measures to improve their access to credit. The study reveals that the benefits of credit reforms hardly reached the target group. The poorest of the poor still approach the village moneylenders and traders for credit. Though majority of loans were originally sanctioned for cultivation and other productive purposes, significant diversion occurred towards current consumption. Cumbersome and time consuming banking procedure, failure to supply credit at t/uf time of need and rigid collateral requirement are the major hindrances causing poor access 10 formal credit institutions. The crop loss due to natural . Calamities and the unproductive utilization of borrowed funds resulted in rising default rate and delayed loan repayments. The study concludes that keeping in view the local socio-economic and ecological conditions, the rural credit policy needs to be revamped to make the rural credit market more efficient and responsive to the needs of the local population in the drought prone region.

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Mamata Swain ¹

Affiliations
1 Nabakrushna Choudhury Centre for Development Studies, Bhubaneswar 751 013, IN

Abstract

This article critically examines basic features of tenancy in Orissa with data from various rounds of NSS. Orissa belongs to the category of high tenancy states in India Major manifestation of tenancy in Orissa is sharecropping. Both the lessors and lessees predominantly hail from marginal and small farm category. The terms and conditions of tenancy contracts are inequitable and regressive in nature favouring the lessors. Contracts are oral, unrecorded. insecure with high rent and characterised by absence of input cost sharing. Though tenancy is legally forbidden in the state, its prevalence suggests that in the specific socio-economic context of labour abundance, land scarcity and dire hunger for land; tenancy seems to play a useful role by providing means of livelihood to the landless and land-poor peasants. Therefore. it is advocated that tenancy should he legalised and recorded This will facilitate resource adjustment and increased agricultural production by transferring land use right from those who are not able to cultivate to those who are willing to cultivate while keeping the landownership right intact and ensure security of tenure and fair rents to tenants.

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