4. Capital Constraint

Availability of capital is also a vital constraint in the adoption and successful cultivation of the High Yielding Varieties. The farmer must have sufficient capital for the purchase of seeds, installation of tube-wells, drilling of pumping sets, chemical fertilisers, plant protection chemicals, tractors, harvesters, threshers, sprayers, and other accessories of agriculture. In case the farmer does not possess the operational capital, he should have an easy access to credit. In India, most of the farmers have no surplus over consumption, and therefore, no saving or operational capital at their disposal. The agrarian institutions like banks and co- operative credit societies have great responsibilities. They should advance loans to the farmers at a reasonable rate of interest. Unfortunately, the credit agencies in India, generally, serve the big farmers w'ho are economically well off and politically well connected. The poor and the small farmers are thus deprived of the required inputs, so essential for the successful cultivation of High Yielding Varieties of crops like wheat and rice. Thus, there is a need of strengthening credit disbursting agencies.