Abstract:

In India, agriculture is the primary profession contributing to the country’s economic development. The Tenth Five-Year Plan encouraged organic farming in a significant way, recognizing the growing global demand for organically produced food and the premium prices they command. India remains a relatively low chemical fertilizer-using country, particularly in rain-fed regions, the northeastern states, and hill areas. This scenario provides India with a strong opportunity to expand organic food production for both domestic consumption and exports. In this context, the government has actively promoted the use of organic fertilizers by converting farm waste and municipal solid waste into high-quality compost or manure. Organic farming has been instrumental in protecting human health, improving soil fertility, and ensuring sustainability. Commercial Banks and Regional Rural Banks have also stepped forward to provide financial support for organic farming. These institutions assist farmers in transitioning from conventional to organic or sustainable farming systems under certification by approved agencies. Investment credit is also extended for farm design, infrastructure development, and management in organic farming practices. In recent years, banks have emerged as crucial stakeholders in financing organic farming, thereby supporting sustainable agricultural transformation. This research article throws light on the role of banks in financing organic farming with special reference to Tamil Nadu.