How can the credit facilities be increased for the fishing industry in India so that working capital requirement for marketing can be met?
Answer & explanation
Correct answer: option 3
The correct answer is option 3: Both 1 and 2
To increase credit facilities for the fishing industry and meet working capital requirements for marketing, both Self Help Groups (SHGs) and cooperatives can play a crucial role. Here’s how each can contribute:
-
Self Help Groups (SHGs): SHGs can pool resources from their members and provide microfinance to individuals or small groups involved in the fishing industry. They help in creating a savings and credit culture at the grassroots level, making financial resources more accessible.
-
Cooperatives: Cooperatives can provide larger-scale financial support and facilitate credit access for the fishing industry. They can organize collective purchasing of inputs, marketing, and provide loans to fishermen and related businesses.