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AN ECONOMIC ANALYSIS OF FARMERS’ INDEBTEDNESS IN SRIKAKULAM DISTRICT OF ANDHRA PRADESH

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Title AN ECONOMIC ANALYSIS OF FARMERS’ INDEBTEDNESS IN SRIKAKULAM DISTRICT OF ANDHRA PRADESH
 
Creator SANDHYA, K
 
Contributor NIRMAL RAVI KUMAR, K
 
Subject ECONOMIC, ANALYSIS, FARMERS, INDEBTEDNESS, SRIKAKULAM, DISTRICT, ANDHRA PRADESH
 
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.
 
Date 2016-06-29T15:25:01Z
2016-06-29T15:25:01Z
2011
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/68268
 
Language en
 
Relation D9039;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY