and now for a question that is puzzling policymakers. over the last 10 years, rbi numbers estimate agri credit has gone up 755%. go with the budget numbers and agri credit has spiked from rs 51,000-odd crore to rs 575,000 crore now. and yet, look at changes in agricultural output, production, expenditure on agri inputs, etc, and you see far, far more modest jumps. yields, for instance, have gone up a modest 18%. it raises a question on where this great avalanche of cash is actually going.
this story out today raises that larger question and advances some possible explanations. it would be great to see more research on this matter, though.