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Course Detail

Course Name Agricultural Finance and Cooperation
Course Code 26AEC312
Program BSc. (Hons.) Agriculture
Semester 6
Credits 3
Campus Coimbatore

Syllabus

Syllabus

Theory

Agricultural Finance- meaning, scope and significance, credit needs and its role in Indian agriculture. Agricultural credit: meaning, definition, need, classification. Credit analysis: 4 R’s, and 3C’s of credits. Sources of agricultural finance: institutional and non-institutional sources, commercial banks, social control and nationalization of commercial banks. Micro financing including KCC. Lead bank scheme, RRBs, Scale of finance and unit cost. An introduction to higher financing institutions – RBI, NABARD, ADB, IMF, world bank, Insurance and Credit Guarantee Corporation of India. Cost of credit. Recent development in agricultural credit. Preparation and analysis of financial statements – Balance Sheet and Income Statement. Basic guidelines for preparation of project reports. Bank norms – SWOT analysis. Agricultural Cooperation – Meaning, brief history of cooperative development in India, objectives, principles of cooperation, significance of cooperatives in Indian agriculture. Agricultural Cooperation in India- credit, marketing, consumer and multi-purpose cooperatives, farmers’ service cooperative societies, processing cooperatives, farming cooperatives, cooperative warehousing; role of ICA, NCUI, NCDC, NAFED. 3 R’s, 5 C’s and 7 P’s of credit. Crop insurance: its scope, significance and limitations and the potential of the newly launched ‘Pradhan Mantri Fasal Bima Yojana’ (Prime Minister’s Crop Insurance Scheme). Successful cooperative systems in Gujarat (AMUL), Tamil Nadu (Aavin), Karnataka (Nandini), Maharashtra and Punjab.

Practical

Optimum allocation of limited amount of capital among different enterprise. Analysis of progress and performance of cooperatives using published data. Analysis of progress and performance of commercial banks and RRBs using published data. Visit to a commercial bank, cooperative bank and cooperative society to acquire first-hand knowledge of their management, schemes and procedures. Estimation of credit requirement of farm business – A case study. Preparation and analysis of balance sheet – A case study. Preparation and analysis of income statement – A case study. Appraisal of a loan proposal – A case study. Techno-economic parameters for preparation of projects. Preparation of Bankable projects for various agricultural products and its value-added products. Seminar on selected topics. Different types of repayment plans.

Objectives and Outcomes

Objectives

  1. To impart knowledge on agricultural finance and financial risk management

Course Outcome:

Any student who has undergone the course shall be able to:

Sl.No

Course outcome

CO

Blooms level

1

Explain the concepts, sources, institutions, and mechanisms of agricultural finance, credit, and financial risk management.

CO1

Understand

2

Apply the principles of agricultural finance to estimate credit requirements, prepare financial statements, appraise loan proposals, and develop bankable agricultural projects.

CO 2

Apply

3

Explain the principles, structure, and role of agricultural cooperatives, crop insurance, and cooperative institutions in agricultural development.

CO3

Understand

 

Text Books / References

Suggested Readings

  1. Gittinger J P. 1982. Economic Analysis of Agricultural Projects. The Johns Hopkins Univ. Press.

  2. Reddy S S and Ram P R. 1996. Agricultural Finance and Management. Oxford and IBH Publishing Co. Pvt. Ltd., New Delhi.

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