per person /
Free
Agricultural Finance and Cooperation
Teacher
Dr. Saddam Hossen Majumder
Category
Core Courses
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Code and Credit: ASEC2102 (1-1-0)
Course Objectives
- To impart knowledge and expertise in the field of agricultural finance.
- To enables the student to understand the business planning and financial management of an agri-business.
- To become aware of the international models for gauging agricultural debt and the role of the regulators in agricultural financing.
CO - PO Mapping
| COs | Course outcomes | COs mapping with POs |
| CO1 | Understand the principles and practices of agricultural credit and lending | PO1 |
| CO2 | Analyze the financial needs and challenges of agricultural businesses | PO3 |
| CO3 | Evaluate and explore the impact of agricultural finance and cooperation on rural development | PO2, PO3, PO5, PO7, |
Program Outcomes
PO1 : Knowledge Enhancement : Demonstrate knowledge and understanding of essential facts, concepts, principles and theories relating to Soil Science, Agronomy, Horticulture, Genetics and Plant Breeding, Plant Pathology, Entomology and other such areas of agriculture.
PO2 : Professional Enhancement : Understanding the value and processes of life-long learning and professional development.
PO3 : Entrepreneurship Skills : Understanding the processes of setting up and managing viable business ventures.
PO5 : Team Work : Play effective roles in multidisciplinary teams.
PO7 : Data Handling : Collect, analyze and interpret scientific data.
Course Syllabus
Theory
Agricultural finance- meaning, scope and significance, credit needs and its role in Indian agriculture. Agricultural credit: meaning, definition, need, classification. Credit appraisal: 3R’s, 5C’s and 7P’s of credits. Financial system in India- 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, Micro finance institutions (MFI), 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, income statement, cash flow statement and their financial ratios. Basic guidelines for preparation of project reports- bank norms – SWOT analysis. Choice of discount rate- net present value (NPV), internal rate of returns (IRR), benefit cost ratio (BCR); network analysis- PERT and CPM. Risk in agriculture, risk management strategies and coping mechanism; crop and livestock insurance programmes. 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 and functions of ICA, NCUI, NCDC, NAFED.
Practical
Determination of most profitable level of capital use. 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 firsthand 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.
References
- Johil, S.S. and C. V. More. 1970. Essentials of Farm Financial Management. Today and Tomorrow Printers and Publishers, New Delhi
- John, J. Hamptron.1983. Financial decision making: Concepts, Problems and Cases of India. New Delhi
- Mamoria, C. B. and R.D. Saksena. 1973. Co-Operatives in India. Kitab Mahal, Allahabad.
- Mukhi, H.R. 1983. Cooperation in India and Abroad. New Heights Publishers, New Delhi.
- Muniraj, R. 1987. Farm Finance for Development. Oxford &IBH Publishing Company Ltd., New Delhi.
- Subba Reddy, S. and P. Raghuram, P., Sastry, T. V. N. and Bhavani Devi, I. 2016. Agricultural Economics. Oxford &IBH Publishing Company Private Ltd., New Delhi
- Pandey, U. K. Agricultural Finance in India.
- Wiiliam, G. Murray and Nelson Aarson, G. Agricultural Finance. The Iowa State University Press, Ames, Iowa State University Press Ames, IOWA.
- www.rbi.org
- www.nabard.Org
Session Plan- Theory
Session 1
Agricultural Finance - meaning, scope and significance, credit needs and its role in Indian agriculture.
Session 2
Agricultural credit: meaning, definition, need, classification. Credit analysis- 3 R’s, 5 C’s and 7 P’
Session 3
Sources of agricultural finance: institutional and non-institutional sources
Session 4
Commercial banks, social control and nationalization of commercial banks
Session 5
Micro financing including KCC, Lead bank schemes: RRBs, Scale of finance and unit cost.
Lead Bank Scheme:
https://www.youtube.com/watch?v=mGES5Dmp4cA
RRB:
https://www.youtube.com/watch?v=JwbUPMNIFCs
KCC & Scale of finance, unit costs
Session 6
An introduction to higher financing institutions – RBI, NABARD, ADB, IMF, World Bank, DICGC
Session 7
Cost of credit: Recent development in agricultural credit. Preparation and analysis of financial statements – Balance Sheet and Income Statement
Cost of Credit &Financial Statements
https://www.youtube.com/results?search_query=preparation+of+financial+statements+animated+video+
Session 8
Crop Insurance: its scope , significance and limitations and the potential of newly launched ‘ Pradhanmantri fasal bima yojna’(Prime Minister’s Crop Insurance Scheme
Session 9
Agricultural Cooperation –Meaning, brief history of cooperative development in India ,Objectives, principles of cooperation, significance of cooperatives in Indian agriculture
Session 10
Basic guidelines for preparation of project reports-Bank norms –SWOT analysis.
Session 11
Role of Cooperatives in the emerging economic scenario
Session 12
Agricultural Cooperation in India- credit, marketing, consumer and multi-purpose cooperatives, farmers’ service cooperative societies, processing cooperatives, cooperative warehousing
Session 13
Role of National and International Cooperative organizations: ICA, NCUI, NCDC, NAFED
Session 15
Choice of discount rate: Net Present Value (NPV)
https://www.youtube.com/watch?v=sTvV0fkLhh0
IRR:
https://www.youtube.com/watch?v=n5H4k8CdnAA
B:C Ratio:
Session Plan- Practice
Session I
Determination of the most profitable level of capital use
Session II
Optimum allocation of the limited amount of capital among the different enterprises.
Session III
Analysis of progress and performance of cooperatives using published data.
Session IV
Analysis of progress and performance of commercial banks and RRBs using published data
Session V
Visit to a commercial bank, cooperative bank, and cooperative societies to acquire first-hand knowledge of their management, schemes, and procedures
Session VI
Visit to a commercial bank, cooperative bank, and cooperative societies to acquire first-hand knowledge of their management, schemes, and procedures
Session VII
Estimation of credit requirement of farm business – A case study.
Session VIII
Preparation and analysis of balance sheet – A case study.
Session IX
Preparation and analysis of income statement – A case study
Session X
Appraisal of a loan proposal – A case study.
Session XI
Preparation of Bankable projects for various agricultural products and their value-added products.
Session XII
Presentation on selected topics
Reference Books
E-Material
Question Banks
Assignments
Case studies
Our Main Teachers
Assistant Professor, Department of Agricultural Economics, M S Swaminathan School of Agriculture