IFPRI-Indian Council of Agricultural Research (ICAR)

Could Pradhan Mantri Garib Kalyan Yojana (PM-GKY) mitigate COVID-19 shocks in the agricultural sector: Evidence from Northern India

While the COVID-19 pandemic resulted about 24% decline in Indian GDP during April-June 2020 quarter, the nation’s agricultural sector, somewhat surprisingly, seems to have done remarkably well during the same period. Using phone survey of a sample of previously interviewed households from Northern India, this paper examines whether the package of public transfer program announced during the lockdown, called Pradhan Mantri Garib Kalyan Yojana (PM-GKY), has helped farmers deal with the shock. Overall, results show that 95 percent of the small holders received supports from at least one of the components of the PM-GKY scheme. Direct cash transfers have performed better than the in-kind transfer schemes. The econometric analysis, using a quasi-experimental method, suggests that the fungibility of funds received under the transfer package was significant in alleviating credit constraints and increasing agricultural investments in modern inputs. This is evident from the results that when only income support program (PM-KISAN) is considered, impact was limited to seed, not fertilizer and pesticides. By contrast, farmers who received benefits from all four programs (i.e., PM-KISAN, cash transfer for women, conditional cash transfers, and free food rations-KISAN) had spent significantly more on procurement of seeds, fertilizers, and pesticides.

Examining institutional credit access among agricultural households in Eastern India: Trends, patterns and determinants

This paper is an attempt to understand the pattern of credit among agricultural households in Eastern India and to identify the correlates of their access to institutional credit for policy imperatives.The study uses unit-level data from the All-India Debt and Investment Survey of the 59th and 70th rounds of the National Sample Survey Office for the years 2002–2003 and 2012–2013. Cragg’s double-hurdle model and the Heckman selection model are used to estimate the determinants of access to and the amount of institutional loans taken by households. These models also account for potential selection bias in the findings.The study reveals that access to credit is strongly associated with the socioeconomic and demographic characteristics of agricultural households. However, about half of the farmers in the eastern states of India lack access to institutional credit despite the government’s attempts to include them in the ambit of formal financial services. Thus, strategies for developing agriculture in Eastern India must include efforts to bring small and marginal farmers under the coverage of institutional credit.These data are based on the responses given by the sample households and not the experimental data. The data pertain to the year 2013.The findings emphasize that strategies for developing agriculture in Eastern India must give special push to enhance small and marginal farmers’ access to institutional credit.

Rural non-farm employment in Eastern India: Implications for economic well-being