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2010 - 20122
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Subject: Rural Banking and Finance Management × Author: KAU × End date: 2012 × Start date: 2010 ×
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    ThesisItemOpen Access
    Indebtedness of farmers: a study of farmer borrowers of primary agriculctural credit societies in Palakkad district of Kerala state
    (Department of Rural Banking and Finance Management,College of Co-operation,Banking &Management, Vellanikkara, 2010) Sowmya, K C; KAU; Lizy, M A
    The study entitled “Indebtedness of farmers: A study of farmers borrowers of Primary Agricultural Credit Societies in Palakkad District was conducted to examine the factors that contribute to the problems of indebtedness among the farmers in Palakkad District and to suggest the measures to be taken to solve the problems. The study was conducted among two PACS of Palakkad District viz., Peruvemba Service Co-operative Bank (PACS 1) and Polpully Service Co-operative Bank (PACS 2). The sample size included 90 respondents i.e., 45 borrowers from each PACS at random, of which 76.67 per cent were defaulters and rest were nondefaulters. Ten officials (including President and Secretary) from each PACS were also interviewed to collect information on the effectiveness of the loan operation system of the PACS. Secondary data on selected performance indicators of the PACS were also used for the study. Statistical tools like Average Annual Growth Rate (AAGR), simple averages, percentages, simple growth rate, simple correlation, efficiency index, priority index and bi-variate tables were used for the analysis. The analysis revealed that inadequacy of income, natural calamities and crop failures, non availability of labourers and high wages were the main reasons for indebtedness. Faith in loan waiver or write off policy, non institutional loan and high interest rate, defective loan policies, illness of borrower or family members, ceremonies, fixation of unrealistic due and lack of access to consumption loans and diversification of income have also been pointed out as reasons behind increasing indebtedness of farmers. The study revealed that procedural delays, lack of adequate securities to hypothecate, misutilisation of loans and inadequate income restricted the borrowers from getting timely loans. It was further observed that defective loaning policy, conspicuous consumption and illness of family members as well as hope for loan write-off policy were the other reasons behind non-repayment by borrowers. Majority of the defaulters opined that the loan amount provided by PACS were insufficient to meet the project cost there by forcing the borrowers to approach other sources for finance. This inturn puts an additional burden on farmers. From the interbank comparison on the effectiveness of the present loan operation system, it was found that the loan operation system of PACS (1) is least efficient and in the case of PACS (2) it is moderately efficient. The overall performance of PACS, commitment of BODs, management, member relations, intrabank relations were appreciable. But in the opinion of the bank officials, Presidents and Secretaries there was something more to be perfected in the existing loan operation system. According to the officials and employees of PACS, the reasons for indebtedness include natural calamities, high cost of cultivation, insufficient income from agriculture, non availability of labourers etc. The mounting overdues affecting the net profit position of PACS. Misutilisation of loan due to inadequate staff for field supervision and loan appraisal was yet another problem as far as the PACS were concerned. The effectiveness of any scheme to a greater extent is correlated to the number of visits made by the bank officials to the beneficiaries. There exist a drastic need for skilled personnel for field supervision and loan appraisal. It is obvious that co-operatives are still following traditional methods and techniques of management, which has to be replaced by modern measures of management and accounting.
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    ThesisItemOpen Access
    Impact of institutional credit on agricultural production in Kerala
    (College of Co - operation Banking and Management, Vellanikkara, 2012) Karthika, Venugopal; KAU; Molly, Joseph
    The study on ‘Impact of institutional credit on agricultural production in Kerala’ has been undertaken with the objectives of assessing the source-wise and purpose-wise credit flow to agriculture; comparing the performance of various institutions in the provision of agricultural credit; examining the impact of institutional credit on agricultural production, and analysing the pattern of utilisation and impact of credit on farmers with respect to Pananchery Panchayat of Thrissur district. The study was based on both primary and secondary data. Major sources of data were, www.rbi.org.in, Agricultural Statistics at a Glance, Economic Review, and www.indiastat.com for the period 1984-85 to 2010-11 for India, and 1990-91 to 2010-11 for Kerala. Percentages, annual growth rates, compound annual growth rates (CAGR), ordinary line graphs, pie diagrams, Mann-Whitney U Test, correlation, simple and multiple linear regression, Cobb-Douglas model, Cochrane-Orcutt Regression model and Durbin-Watson d- Test were employed to analyse the data. Primary data have been collected from 60 farmers selected through stratified random sampling from Pananchery Panchayat of Thrissur district. The study has revealed that co-operatives are the major source of IC in India, and SCBs in Kerala, Thrissur and Pananchery Panchayat. Co-operatives are more interested to provide indirect loans in recent years. IC is mainly disbursed by way of short-term and production credit in India, Kerala and Pananchery. Simple and Multiple Linear Regression, Cobb-Douglas and Cochrane-Orcutt Regression models revealed that IC has significant and positive impact on agricultural production in India and Kerala. Cobb-Douglas model for the Pananchery Panchayat also pointed out the significant contribution of IC in agricultural production. As far as the problems of farmers of Pananchery Panchayat are concerned, availability of credit is not an important one. This might be one of the reasons for the high productivity compared to State average, in many of the crops cultivated in Pananchery, given the significance of institutional credit in agricultural production. The major problem related to IC as pointed out by them is the absence of initiatives and technically qualified staff for providing consultancy, bank related and marketing services to farmers from Krishibhavan, Panchayat and commodity boards. The farmers, especially illiterate are in dire need of qualified staff at Panchayat level for filling up of various forms and preparation of documents and proposals to be submitted to banks for financing, providing market intelligence services and making them competent to trade in futures markets in agricultural commodities so as to fetch reasonable prices for their products. The agricultural officers, according to the farmers are preoccupied with their routine functions. Hence it is suggested that the services of additional personnel competent to provide technical consultancy and guidance with respect to the financing and commodity market intelligence services may be provided to the farmers at the Panchayat level.