Institutional and Non-Institutional Credit in Agriculture-Case Study of Hugli District of West Bengal

in Agriculture Case Study of Hugli District of West Bengal Meenakshi Rajeev Sharmistha Deb West Bengal has been experiencing high growth of agricultural productivity since late 1970s. This period has also witnessed a growth of an informal credit market with a new lending class comprising traders (of HYV. fertilisers and pesticides), catering to the working capital needs of the farmers, A survey of Hugli district of West Bengal shows a high dependence of the small and marginal farmers on this market. Deprived of the relatively cheaper credit from the formal institutions these farmers are compelled to depend on high interest hearing loans for productive purposes and thereby face the risk of falling into a vicious cycle of perenniaI indebtedness.