Impact of Microfinance on Farm Income of Small and Marginal Farmers in Western Tamil Nadu

In India, the marginal, small and semi-medium farmers are contributing 95 percent of the total farmers (Agriculture Census, 2011-12). The average size of holdings of the small and marginal farmers cannot generate adequate employment and income from crop cultivation. Agricultural development requires timely and adequate supplies of essential farm inputs. But the investment capacity of majority of the Indian farmers is quite low as they cannot afford to meet the increasing demand for the purchase of improved seeds, recommended dosage of fertilizers, hiring costly farm machinery, etc. So, lack of finance and its accessibility are one of the main reasons for low productivity of Indian agriculture.

This paper attempts to study the impact of microfinance on income of members and non-members of self-help groups on the selected tribal and non-tribal women in the study area.