AN ECONOMIC ANALYSIS OF FARMERS’ INDEBTEDNESS IN SRIKAKULAM DISTRICT OF ANDHRA PRADESH
KrishiKosh
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Title |
AN ECONOMIC ANALYSIS OF FARMERS’ INDEBTEDNESS IN SRIKAKULAM DISTRICT OF ANDHRA PRADESH
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Creator |
SANDHYA, K
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Contributor |
NIRMAL RAVI KUMAR, K
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Subject |
ECONOMIC, ANALYSIS, FARMERS, INDEBTEDNESS, SRIKAKULAM, DISTRICT, ANDHRA PRADESH
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Description |
In the era of globalization and economic liberalization, the farmer’s focus shifted towards market led production and this called for revamping the agricultural production sector towards strengthening the requisite farm infrastructure, extensive use of machinery, cultivation of cash crops etc. But, natural calamities like floods, droughts besides acute pests and disease infestations, use of spurious inputs etc., are still playing a major havoc with the farmers, making them to end up in a debt trap. Hence, the present study “An Economic Analysis of Farmers’ indebtedness in Srikakulam district of Andhra Pradesh” was conducted in Srikakulam district of Andhra Pradesh with the following objectives: 1. To study the agri–economic scenario of sample farmers to assess the equity and non- equity capital components employed by the sample farmers. 2. To study the source-wise and purpose-wise indebtedness of sample farmers in the cultivation of major crops. 3. To analyze and prioritize the factors responsible for indebtedness of sample farmers. 4. To study the impact of Agricultural Debt Waiver and Debt Relief Scheme implemented by the financial institutions on the indebtedness of farmers. Srikakulam district in Andhra Pradesh was selected purposively and the top two indebted mandals viz., Ponduru and Gara were selected. Two villages from each mandal were selected based on the extent of severity of indebtedness. Thus, two mandals and four villages were ultimately selected. Forty respondents from each category i.e., marginal (2 ha) were selected by simple random sampling technique, thereby, making a total sample size of 120 respondents. To assess the impact of Agricultural Debt Waiver and Debt Relief Scheme on the equity position of the farming community, the above sample is bifurcated into categories viz., borrowers eligible (beneficiaries) under Agricultural Debt Waiver and Debt Relief Scheme and borrowers not eligible under Agricultural Debt Waiver and Debt Relief Scheme. As the number of beneficiaries under Agricultural Debt Waiver and Debt Relief Scheme were 50, thereby, an equal number of borrowers non eligible under the scheme were selected to assess the impact of the scheme on the repayment pattern. Primary data were collected through personal interview method with the help of pretested schedules from the respondents and data was tabulated and analyzed. The detailed analysis revealed that, the share of borrowed capital was more compared to equity capital for all the crops across all the categories of farmers except for red gram (small farms), chillies (small farms), sunflower (marginal and other farms), green gram (other farms) and mango (small and other farms). The size of land holding was directly related to the magnitude of debt of the farmers. But, considering the debt with reference to per hectare, it varies inversely with the size of land holding. Source-wise indebtedness revealed that, 31.85 per cent of total debt was owed to institutional agencies and 68.15 per cent to non-institutional agencies. Purpose-wise indebtedness revealed that, nearly 55 per cent of total debt incurred for unproductive purpose and 45 per cent for productive purposes. Social-group wise indebtedness revealed that, on an average, farmers belong to backward caste accounted for 77.21 per cent of total debt followed by other castes with 14.91 per cent and scheduled castes with 7.88 per cent. The major reasons for indebtedness include adverse climatic conditions resulting in crop failure, rising cost of cultivation, rising family expenditure, fluctuations in market prices, lack of adequate irrigation facilities, inadequacy of institutional loan amount and high rate of interest on non-institutional loan amount. Both cost of cultivation and family expenditure were found to be positively influencing the indebtedness at significant level. The number of willful defaulters has been significantly increased compared to preceding periods of Agricultural Debt Waiver and Debt Relief Scheme. The dependency on financial institutions has been greatly declined and the dependency on non-institutional sources has been increased at significant level with the advent of Agricultural Debt Waiver and Debt Relief Scheme. |
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Date |
2016-06-29T15:25:01Z
2016-06-29T15:25:01Z 2011 |
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Type |
Thesis
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Identifier |
http://krishikosh.egranth.ac.in/handle/1/68268
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Language |
en
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Relation |
D9039;
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Format |
application/pdf
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Publisher |
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY
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