Micro credit and technology utilisation in vegetable production by self help groups in Thiruvananthapuram district
Loading...
Files
Date
2003
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Department Of Agricultural Extension, College Of Agriculture, Vellayani
Abstract
Kerala is depending upon other states for meeting its vegetable requirements
though the soil types and climate are suitable for large scale and commercial
cultivation. To meet the resource crunch among farmers a supplementing rural
credit system to the existing ones is needed. This research study was an enquiry
into the reported increase in area of vegetable cultivation and financial viability
due to micro credit provision among beneficiaries of Self Help Groups of
Vegetable and Fruit Promotion Council Keralam (YFPCK), Thiruvananthapuram
project area.
The respondents were 30 experts and 120 beneficiaries from twelve SHGs
of five Panchayats of Thiruvananthapuram district. The data were collected using
pre-tested and structured interview schedule and questionnaire prepared for the
purpose. Micro credit utilisation and technology adoption levels in vegetable
production by Self Help Groups were analysed. Also micro credit need and gap
were ascertained and constraints and suggestions listed down.
Based on group dynamics indicators it was inferred that the SHGs were
functioning at medium level. Further inadequacies and future prospects are
needed to be managed effectively.
The SHGs had> 70 per cent attendance level in meetings, one meeting was
arranged per month and had homogenous membership. The loan amount availed
was between Rs.40,000 to Rs.80,000 with uniform interest rate. Group savings of
Rs.SOO to Rs.ISOO was reported. Usually < 8 books of account are kept which are
maintained by a group member. Members of group had trainings conducted based
on their felt needs facilitated by field officers.
XS
Majority of the beneficiaries were in the 'high' category in respect or all
vital profile characteristics like experience, innovativeness, social participation.
training and increase in income after joining group activity. This is Cl positive
effect of group formation. Also regarding technology adoption rate group
characteristics were significantly related and individual characters were not
significant.
The credit need and credit gap was Rs.238 per cent of land. Regarding
market behaviour, field centres were preferred to market the produce, bicycle or
autorickshaws were mostly used for transport of produce. It was seen that 67 per
cent of respondents got their money as ready cash at the time of sales and 80 per
cent were satisfied with marketing support provided. Export potential must be
more facilitated.
Total cost of cultivation for one cent of panthal crop was reported as RS.S38
per cent. The credit utilisation was complete. All the respondents had repaid
completely the loan amount and hence repayment was complete.
Constraints faced in rmcro credit servicmg were absence of subsidy,
indebtedness of beneficiaries and formal book keeping difficulties. The short
term nature, allotment season and meeting time were reported as less relevant
constraints.
Constraints faced in timely repayment of micro credit were high labour cost,
market glut leading to low cost of produce and wilful defaulters. Political
influence was not rated as major constraint. Interest rates were low and overdues
were not expected to be written off by beneficiaries.
Perception of experts was high about regular field visits by experts,
experience sharing and compulsion by group pressure in repayment and utilisation
of loan amount. Also monitoring and recording of adopted technologies which
were not perceived as risky was enabled by micro credit.
Perception of beneficiaries about micro credit was high with respect to
benefit of more renewal chances, easy repayment installments, absence of
collateral security, reduction in cost of borrowing and ensuring participatory
approach. Also reduction in time spent, making farming profitable, experts
visiting fields, convenient interest levels and satisfactory amount supplied was
enabled by micro credit.
Suggestions of beneficiaries and experts for improving micro credit supply
relates to role of banks, government support and sustained group action. In the
case of defaulters, bank intervention must be more easily and strict to avoid
possible revenue recovery and smooth group functioning. Regarding
improvement in repayment and sustained group action, more incentives must be
provided. Government support in the form of subsidy, insurance and reduction in
lease amount are needed.
Description
MSc
Keywords
Citation
172086