Caste Discrimination In Agricultural Credit

Vaishnav Arun Kumar, OP Jindal Law School

INTRODUCTION

When a person needs money to be credited, they move their attention to institutions such as banks for loans. To specify people who are involved in agribusiness, there are industries which include certain facilities which are being kept for agricultural business where the business area involving agricultural activities such as farming and other activities such as steps which are needed for procession and distribution. To aid them in completing the entire process they borrow from institutions such as NABARD (national bank for agricultural and rural development) and other institutions linked to it. However, there are multiple barriers and difficulties faced by the farmers and the sub section that is focused here is the discrimination shown by these institutions due the caste system. The caste system worked as a “regulatory mechanism to enforce the social and economic organization through the instruments of social ostracism (or social and economic penalties) which has been reinforced with the justification and support from the philosophical elements in the Hindu religion” (Thorat 2007: 3). This ‘forced exclusion” resulted in restrictions experienced by different groups in accessing and using land, labour, credit and other resources. The outcome is occupational immobility, with those belonging to so-called higher castes assuming rights and privileges of control. Inequality, a lack of freedom and the denial of basic human rights thus frame and influence the quality of life, indeed life itself, for those assigned to the lowest castes.1Agriculture plays a crucial role in the development of the Indian economy. Rural finance is a matter of credit concern in a developing economy like India where 70% of the population depends upon agriculture. It accounts for about 19% of India’s GDP. The importance of farm credit as a critical input to agriculture is reinforced by the unique role of Indian agriculture in the macroeconomic framework and its role in poverty alleviation. Recognizing the importance of agriculture sector in India’s development, the Government and the Reserve Bank of India (RBI) have played a vital role.