AN ANALYSIS OF FARMERS ACCESS TO CREDIT, BORROWING BEHAVIOUR AND RESOURCE USE EFFICIENCY IN GUNTUR DISTRICT OF ANDHRA PRADESH
Loading...
Files
Date
2014
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY, GUNTUR
Abstract
Indian Agriculture is predominantly characterised by small and marginal
farmers, tenants, landless / agricultural labourers with the co-existence of
institutional (formal) and non-institutional (informal) credit agencies. Small and
marginal farmers are usually left out of the purview of formal credit and depend
on private money lenders which obviously costs them heavily. The government
virtually had no record of information on tenant holdings, number of tenant
farmers etc., by which they are denied of several benefits from developmental
programmes. In this context it would be of high use to investigate on the access
to credit, borrowing behaviour and resource use efficiency of land owned
farmers, semi- tenant farmers and tenant farmers to bring out certain policy
changes in the present credit structure with the following specific objectives.
1. To assess the access to credit by land owned farmers, tenant farmers and
semi-tenant farmers from different sources.
2. To identify the socio-economic factors affecting the borrowing behaviour
of selected farmers.
3. To study the resource use efficiency of land owned farmers, tenant
farmers and semi-tenant farmers.
Multi-stage random sampling design was employed to select a
representative sample of 120 farmers from six villages of three mandals in
Guntur district of Andhra Pradesh. Primary data was collected through personal
interview method with the help of pretested schedules from the respondents and
the data was tabulated and analyzed. Secondary data was collected from Chief
Name of the Author : G. MANI PRIYANKA
Title of the Thesis : AN ANALYSIS OF FARMERS’
ACCESS TO CREDIT,
BORROWING BEHAVIOUR AND
RESOURCE USE EFFICIENCY IN
GUNTUR DISTRICT OF ANDHRA
PRADESH
Submitted for the award of : Master of Science in Agriculture
Department : Agricultural Economics
Major Advisor : Dr. Y. RADHA
University : Acharya N. G. Ranga Agricultural
University
Year of Submission : 2014
Planning Officer (CPO) of Guntur district. Statistical tools used in analysis were
mean, percentages, cost concepts, Theil’s index, Discriminant analysis and
Multiple Linear Regression.
The detailed analysis revealed that land owned farmers and semi-tenant
farmers were having more access to both institutional and non- institutional
credit than the tenant farmers. Tenant farmers were having more access to noninstitutional
credit compared to land owned farmers and semi-tenant farmers as
they lack collateral to pledge in banks.
Land, cost of cultivation and net returns showed positive and significant
influence on borrowing behaviour of land owned farmers. Cost of cultivation
and net returns showed positive and significant influence on borrowing
behaviour of semi-tenant farmers while only land showed positive and
significant influence on borrowing behaviour of tenant farmers.
The discriminant functional analysis revealed that between the land
owned farmers and semi-tenant farmers, institutional loan amount was the major
discriminator (52.67 %) followed by operational costs (38.56 %); between the
land owned farmers and tenant farmers institutional loan amount was the major
discriminator (81.38 %) followed by operational costs (22.48 %); and between
semi-tenant farmers and tenant farmers, operational costs was the major
discriminator (54.71 %) followed by institutional loan amount (49.08 %).
Factors influencing resource use efficiency of the farmers revealed that
land and labour cost showing significant influence on gross returns of land
owned farmers. Labour cost, borrowed capital and owned capital showed
positive and significant influence on gross returns of semi- tenant farmers.
Land, borrowed capital and owned capital showed positive and significant
influence on gross returns of tenant farmers. Labour cost, borrowed capital and
owned capital exhibited positive and significant influence on gross returns of
the total sample farmers.
As credit being positively significant for all the farmers and institutional
finance emerged as the major discriminator, the same may be made available to
all the farmers, irrespective of owning the land, to increase resource use
efficiency.