Question

Which of the following statement/s is/are true with respect to agricultural credit in India
A. Agricultural credit is very low in eastern states
B. Agricultural credit is high in southern states
C. Agricultural credit is uniformly distributed across states in India
D. Agricultural credit is low in western states
Choose the correct answer from the options given below:

• A. A only
• B. B only
• C. A and B only
• D. A, B and D only

Hint:

Agricultural credit in India shows strong regional skewness: Highest in Southern states, lowest in Eastern and North-Eastern states.

Answer 1

The Correct Option is C

Step 1: Understanding the Concept:
Institutional agricultural credit flow in India exhibits marked inter-regional and interstate disparities.

Step 2: Detailed Explanation:
According to RBI and NABARD credit flow reports:
- Southern states (e.g., Tamil Nadu, Andhra Pradesh, Karnataka) account for a disproportionately large share ($> 40\%$) of total ground-level agricultural credit disbursement (Statement B is true).
- Eastern and North-Eastern states receive an exceptionally low share ($< 10\text{--}12\%$) of formal institutional farm credit (Statement A is true).
- Credit is highly skewed and not uniformly distributed (Statement C is false).
- Western states (Maharashtra, Gujarat) have robust institutional credit networks (Statement D is false).

Step 3: Final Answer:
Hence, statements A and B only are true.