Performance of Primary Agricultural Co-Operative Credit Societies in Dharwad District of Karnataka
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Date
2011
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Publisher
UAS, Dharwad
Abstract
Farm credit is a strategic input and demand for it steadily increased with the
advent of modern technology. Among the various financial institutions, the cooperatives
have emerged as a major source of agricultural credit. A three- tier system
of co-operative credit structure came into existence to meet short term and medium
term credit requirements of the farmers. An enquiry into the performance of PACS’s
in Dharwad district could reveal interesting facts about the society’s performance
according to geographical variations. Fifteen PACS’s were selected for the study,
which represented three different agro-climatic zones. The study was based on both
primary and secondary data. The growth in the employees, membership and loan
account was positive and significant in most of the societies. Growth in financial
variables like overdues and loss showed positive for most of the societies. This
implied that most of the societies incurring losses. The liquidity and solvency position
of the bank was found to be sound. However, the net profit to net worth ratio was
found to be negative. The recovery percentage for the selected PACS’s increased over
the years. The principal component analysis revealed that almost all variables were
closely associated with performance of the societies in first component. The variations
explained by these variables were ranged from 67 per cent to 85 per cent in all
selected societies during the study period. Agricultural loan dominated among the
loan amount advanced for different purposes followed by non-agricultural loan for
small and large farmers, whereas, for medium farmers non-agricultural loan
dominated. Demand and collection of the societies showed an increasing over the
years.
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Keywords
Agricultural Economics