ABSTRACT:
Institutional agricultural credit plays a pivotal role in enabling farmers to access financial
resources for inputs, irrigation, mechanization, and post-harvest management. In Karnataka,
agricultural credit has grown significantly, with the state consistently exceeding its planned
disbursement targets under the Agricultural Credit Plan. However, disparities persist in the
flow and accessibility of credit across districts and farmer categories. This study focuses on
Mandya District, known as the ―Sugar Bowl of Karnataka,‖ to examine the distribution of
institutional agricultural credit across cooperative banks, commercial banks, and Regional
Rural Banks. Using secondary data from the Reserve Bank of India, NABARD, and districtlevel credit plans, the study analyzes agency-wise and taluk-wise credit allocation,
highlighting the dominance of public and cooperative banks, inter-taluk variations, and
challenges faced by small and marginal farmers. The findings indicate a concentration of
credit on irrigated, high-value crops and underline the need for more inclusive, equitable, and
development-oriented financial interventions. Policy recommendations include strengthening
the role of RRBs and cooperatives, promoting crop diversification, enhancing financial
literacy, and implementing innovative credit products to ensure sustainable agricultural
growth.
Keywords: Institutional Agricultural Credit, Innovative Credit Products, Credit Distribution,
Financial Literacy, Agricultural Policy.