A Review on Financial Literacy for Farmer-educate to Empower

Abstract

The volume of farming community in the world ranges upto 30% [1]. India is a significant global contributor in the agriculture industry. Agriculture and allied sectors are the main source of livelihood to about 55% of India’s population. Of the country's population engaged in agriculture and related sectors, 69% live in rural areas, with the majority of these people being farmers [2]. Although, India is having top standings in terms of highest milk production, livestock population etc., but on the ground reality farmers face many constraints hindering the sustainability in production and productivity of agriculture sector. Among several constraints exist, financial literacy poses to be one of the major constraints hindering farmers growth. Financial inclusion and, eventually, financial stability were seen as much aided by financial literacy in India. Among all farming households, about 27-37% are financially literate and have access to official credit sources [3]. Recognizing the importance of agriculture and allied sector in India’s development, the Government, Reserve Bank of India (RBI) and many financial research institutes in collaboration with farmer-oriented universities like agriculture, veterinary and allied universities have played an important role for catering to the increasing awareness on financial literacy and access to credit services among farmers as there exist visible lacunae in achieving improved farmers economy [4]. The financial literacy was found to have direct impact on socio-economic factors and hence protocols containing suitable delivery services that addressing financial concepts results in producing beneficial effect and long-term sustainability on farming communities [5].