Institutional credit to agriculture reached an all-time high of Rs.25.10 lakh crore during 2023-24, reflecting the importance of financing in driving agricultural growth, according to RBI Deputy Governor Swaminathan J.

He also highlighted that Indian agriculture faces a demographic challenge, with the average age of farmers now at 50.1 years, underscoring the need to attract younger generations to the sector.

He observed that traditional lending practices have certain limitations in catering to the needs of the agricultural sector.

Agriculture is inherently seasonal, and returns are often delayed or reduced.