FINANCE

CROP FINANCE

The Government instituted the system of crop or seasonal finance when it was found that there was shortage of credit in the rural areas. The system is intended to fill in the vacuum in the credit facilities caused mainly by legislation relating to debt relief, money-lending and land tenure passed during the last few years.

The advances by way of crop or seasonal finance are secured by the crops given by debtors. These advances are essentially short-term in character and their chief object is to finance, at reasonable rate of interest, agricultural operations connected with the raising of crops. The principal agencies recognised for grant of crop or seasonal finance are the following:-

(i) Co-operative Societies.

(ii) Revenue Department (Tagai Loans).

(iii) Grain Depots.

(iv) Persons authorised under section 54 of the Bombay Agricultural Debtors' Relief Act, 1947.

Among these agencies the Government policy is to advance finance as far as possible through the co-operative societies. But in Ratnagiri District advances of crop or seasonal finance were made either through the agency of revenue department or through grain depots. Table given below shows these advances for a period from 1946-47 to 1949-50.

TABLE No. 3.

ADVANCES OF CROP OR SEASONAL FINANCE THROUGH REVENUE DEPARTMENT OR GRAIN DEPOTS DISBURSED IN RATNAGIRI DISTRICT.