Assessing the impact of Kisan Credit Card scheme on profitability of crops in district Udham singh nagar, Uttarakhand
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Date
2015-07
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G.B. Pant University of Agriculture and Technology, Pantnagar - 263145 (Uttarakhand)
Abstract
Kisan credit card scheme is a landmark in the credit distribution system. The scheme was introduced in year 1998-99 with an aim to provide adequate, timely, hassle free loan amount at low cost. Present study was conducted in Udham Singh Nagar district, Uttarakhand, with the objectives to study socio-economic characteristics of the sample farmers, to examine the utilization pattern of loan taken through KCC scheme, to evaluate the impact of KCC scheme on profitability of major crops, to compute the cost of credit obtained through KCC scheme and to rank the constraints faced by beneficiaries and non-beneficiaries in accessing loan through KCC. The present study utilizes both secondary and primary data; secondary data were collected from various govt. offices. For primary data, random sampling technique was followed to select 64 farmers, 32 beneficiaries (farmers taking loan through KCC) and 32 non-beneficiaries. Simple statistical tools were used to study the socio-economic characteristics, loan utilization pattern and cost of obtaining credit through KCC, Garret ranking technique was used to rank the constraints faced by the beneficiaries and nonbeneficiaries in assessing loan through KCC. Multiple linear regression analysis was used to examine impact of KCC on profitability of crops. Socio-economic characteristics of the beneficiaries and non-beneficiaries show that beneficiaries were relatively resource rich as, 63 per cent and 54 per cent of beneficiaries and nonbeneficiaries owned livestock, respectively and about 75 per cent of beneficiaries and 65 per cent of non- beneficiaries owned more than seven implements. Most of the beneficiaries had farming as their primary occupation as 81 per cent of beneficiaries and 62 per cent of the non-beneficiaries had farming as their primary occupation. The cropping intensity 259.41 per cent for non-beneficiary was slightly lower the beneficiaries farms (250.70%). Beneficiaries derived 74.03 per cent and 10.39 per cent income to the total income from crop and livestock respectively. While the corresponding figures were 73.19 per cent and 7.64 per cent for the non-beneficiaries. 88 percent of beneficiaries taken loan more than Rs 2 lakhs. The loan utilization pattern shows that overall 89.24% to total loan amount was productively used while 10.76% was diverted towards unproductive use. Diverted loan amount was higher for the small farmers accounting for 28% of their average loan amount. Same figure was 20.81%, 5.60% and 1.87% for small, medium and large farmers, respectively. Paddy (Kharif) occupied 33.01 and 31.02% per cent area to the gross cropped area followed by wheat (rabi) occupying 32.86 percent and 28.74 percent area to the gross cropped area on the beneficiaries and non-beneficiaries farms, respectively. It was found that average costs and net returns of beneficiaries were 10.3 per cent and 16.6 per cent higher than the non-beneficiaries for paddy crop and 6.2 per cent and 7.5 percent for wheat crop. KCC increased the net profit from wheat and paddy by Rs. 2299.85 and Rs. 2663.95 per hectare respectively. The total cost of borrowing was found to be Rs 9.19 per Rs 100/- for borrowing loan limit up to Rs. 3 lakhs and Rs. 10.59 per Rs 100/- for limit more than Rs. 3 lakhs. According to the rank given by the beneficiaries, the main constraint was getting no dues certificate and lengthy paper work, which were ranked first and second. Rank given by the non-beneficiaries shows that because of easy access they preferred to take loan from non-institutional sources. Time consuming formalities of the bank, fear of being defaulter and insistence of collateral were ranked second, third and fourth.
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