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First, the western region, consisting of Goa, Gujarat and Maharashtra,
has generally suffered setback in the phase of doubling of farm credit; it is
found that as compared with the best performing southern region, the spread
for the western region which was at 155% in 2004-05, shot up, after some
fluctuation, to 205% in 2010-11. Earlier in the 1990s the western region ratio
of credit to GSDP had kept pace with the ratio of the southern region, and what
is more, it had improved upon the ratio of the northern region.
Second, unlike the middle level western region, the poorest eastern
region has improved its relative position
vis a vis
both the well-banked regions,
southern and northern, in the credit doubling phase. Thus, the spread for
the eastern region fell
vis a vis
the southern region from 450 in 2003-05 to
363%, in 2010-11 and that
vis a vis
the northern region, it fell from 381%
to 254% during the same period. Contrariwise, the central region has not
derived similar benefit during the credit doubling phase at any rate not
vis a
vis
the southern region. Its spread
vis a vis
the southern region increased from
221% to 249%. Of course,
vis a vis
the northern region, the central region has
performed relatively better.
Finally, we are presenting yet another analytical picture to measure
interregional disparities in GLC distribution in the form of this distribution
compared with the potential demand indicators for credit flow (Table 8.8).
In this table, we have made a comparison of regions’ relative shares in these
indicators: relative shares in the number of farmer households, GSDP
originating in agriculture and allied activities, and in GLC disbursements.
These data suggest that a depressing picture of persistent regional inequalities
is not only prevalent, it is in fact getting worsened.
First, the southern region accounts for 39.3% of total GLC for agriculture
in 2010-11 while it has only 24.1% of agricultural GSPD of all states, and what
is more, it houses only about 18% of farmer households as per 2003 NSSO
survey. Even as per the 2010-11 agricultural census, the share of the southern
region in the country’s total operational holdings was only 18% and the share
in area operated was just about 20%. Similarly, the northern region enjoys a
phase of 25% in GLC but has a share of 18% in agricultural incomes and 12.3%
in the number of farm households. The northern region’s shares in the number
and area of operational holdings in 2010-11 were 12% and 10% respectively.
Secondly, in the contrast, the central region has the highest share in
the country’s total farm households and a fairly high share of a farm income
at 21.2%; but it has obtained only 13.4% of total farm GLC. The central region
also has high percentages of the number (25%) and area (20%) of operational
