143
the share of cooperatives at 16.9% in the latest year as against 57% that prevailed
in 2001-02 (Table 5.3 and chart 12). Almost the same trend is observed in
loans outstanding.
It must be noted that the broad characterisation of the changing roles
of cooperatives and commercial banks, were induced by different policy
interventions in different points in time. First, after bank nationalisation, in
the early 1980s, the 20-point programmes were introduced and the targets of
priority sectors enhanced. In 1979-80, the IRDP programme was introduced.
Second, towards the end of the 1980s, the socio-political undercurrents resulted
in such policy actions as loan waivers. Third, with serious organisational
weaknesses faced by banks, the 1990s began with banking reforms and
consequential slowdown in agricultural lendings by commercial banks, but
the processes of provisioning and reducing NPAs got an impetus. The crisis in
agriculture combined with sharp reductions in farm loans by banks brought
forth the government response in the form of introducing special credit plans
in 1994-95 which gave a push to farm loans by commercial banks. Even so,
until the end of the decade of the 1990s, the commercial banks faltered on their
Table 5.3: Changing Shares of Different Agencies in Agricultural Loans
(In percentages)
Period
Short-Term
Long-Term
Total
(Short-Term + Long-Term)
Co-
operatives
SCBs+
RRBs
Co-
operatives
SCBs+
RRBs
Co-
operatives
SCBs+
RRBs
Loans Issued
1971-72
84.5
12.2*
65.2*
34.8*
87.1
1.6
1981-82
65.5
22.7
43.9
56.1
57.7
38.7
1985-86
60.7
31.5
35.3
64.7
51.3
43.7
1992-93
57.3
37.6
42.9
57.1
51.7
45.2
2001-02
56.8
43.2
57.0
43.0
56.4
55.4
2005-06
37.9
62.1
25.0
75.0
33.4
66.6
2009-10
29.9
70.1
16.9
83.1
26.4
73.6
Loans Outstanding
1971-72
86.7
13.3
-
-
85.6
14.4
1981-82
56.7
36.1
55.2
44.8
55.8
44.2
1985-86
55.3
44.7
35.8
64.2
42.8
57.2
1992-93
50.5
49.5
34.9
65.1
40.2
59.8
2001-02
47.6
52.4
50.7
49.3
49.4
50.6
2005-06
31.6
68.4
36.7
63.3
34.4
65.6
2009-10
21.5
78.5
11.8
88.2
17.5
82.5
* For 1973-74
Source:
RBI (2012), Handbook of Statistics on the Indian Economy 2011-12, September. For details, see
Annexure I and J.
