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A STUDY ON CREDIT MANAGEMENT AT FARM LEVEL AND ITS IMPACT ON RICE PRODUCTIVITY AND FARMER’S INCOME IN BIHAR

KrishiKosh

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Title A STUDY ON CREDIT MANAGEMENT AT FARM LEVEL AND ITS IMPACT ON RICE PRODUCTIVITY AND FARMER’S INCOME IN BIHAR
 
Creator KALYANI, KATTA
 
Contributor JANAIAH, ALDAS
 
Subject acidity, vermicomposting, composting, rice, organic acids, organic fertilizers, enzymes, wastes, crop residues, nitrogen
BIHAR, FARMER’S, INCOME
 
Description Credit is the crucial input for the economic development of the farmers as it helps in increased production through use of modern inputs. The study on “A Study on Credit Management at Farm Level and Its Impact on Rice Productivity and Farmer‟s Income in Bihar”, was taken up to examine the nature of credit management by the farmers in the Bihar state. Total of 144 sample farmers from 8 districts i.e.18 farmers from each district were selected randomly and survey was conducted for generating the necessary information and regression analysis was carried out to know the impact of factors on production and in particular impact of credit on yield of paddy.
The results of the study revealed that the Commercial Banks played (81.51 percent) a major role in providing agriculture credit in the Bihar, followed by money lenders (12.60 per cent) and the annual growth rate was about 11 per cent for Commercial Banks and 17.5 per cent for RRBs, whereas CCBs growth rate was -3.5 per cent .
Primary sources of income of the sample farmers constitute Farming (92.36 per cent), Business (4.86 per cent) and Service (2.77 per cent). The main purpose of taking credit by the majority of sample farmers is production (87.39 per cent). Irrespective of source majority of farmers (68.06 per cent) had taken a loan of Rs. 10000- 50000. The repayment period was 6 months for 47.42 per cent of farmers who had taken the credit from bank.
About 90.72 per cent of sample farmers who had borrowed the credit from banks are charged with an interest rate of 4-10 per cent and those who borrowed credit from money lenders were charged with an interest rate of 30-60 per cent (53.33 per cent). The higher percentage of farmers (72.26 per cent) has completely utilized the loan followed by partial diversion (23.53per cent) and complete diversion (4.21per cent). Majority of farmers (39.40 per cent) have diverted the credit to meet the medical expenses of the family members.
Irrespective of the source and purpose of credit taken majority of sample farmers (76.47 per cent) had not repaid the credit and only 23.53 per cent of farmers had repaid the credit borrowed.
The borrowers had received yield 17.76 per cent i.e. 2.32 t ha-1 I higher than that of non-borrowers (1.97 t ha-1). Thus the borrowers had received a higher net return of Rs. 4908.1 ha-1 than that of the non-borrowers Rs.2336.7 ha-1. Results of regression reveal that credit has a significant positive impact on paddy yield.
About 71.62 per cent of farmers availing credit from banks had a favorable opinion, whereas 66.67 per cent of farmers who had taken credit from moneylenders had unfavorable opinion, 80 per cent of farmers who credit taken from Cooperatives had favorable opinion and 100 per cent of farmers who borrowed from other sources had unfavorable opinion towards credit.
The problems faced by the farmers for acquiring the credit from banks are bribery, hectic documentation and delayed processing. The suggestions made by the farmers to overcome the problems were strict regulations in the system, timely availability of credit and easy documentation
 
Date 2016-06-09T13:59:53Z
2016-06-09T13:59:53Z
2011
 
Type Thesis
 
Identifier http://krishikosh.egranth.ac.in/handle/1/67117
 
Language en
 
Relation D8885;
 
Format application/pdf
 
Publisher ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY