A Study on Financial Flow Towards Agricultural Development in Hassan District

Abstract

Agriculture continues to be the backbone of rural livelihoods in Hassan district, Karnataka, contributing significantly to food security, employment, and regional economic stability. The present study examines the financial flow towards agricultural development in the district with a focus on institutional credit, government subsidies, and private investments between 2005 and 2024. Using both secondary data from government reports, district statistical handbooks, NABARD credit flow statements, and primary insights from farmer surveys, the study analyzes the trends, accessibility, and impact of financial resources on agricultural productivity and sustainability. The findings indicate a steady rise in institutional credit disbursement through cooperative and commercial banks, particularly after the implementation of agricultural loan waiver schemes and the Kisan Credit Card program. However, disparities persist across small and marginal farmers, who continue to face constraints in collateral requirements and high dependence on informal credit. Subsidy-driven investments in irrigation, mechanization, and crop insurance have improved resilience, yet the effectiveness of fund utilization is uneven due to administrative delays and limited financial literacy. The study concludes that targeted financial inclusion, better credit delivery mechanisms, and monitoring of subsidy utilization are essential to ensure equitable and sustainable agricultural development in Hassan district.