EFFECTIVENESS OF AGRICULTURAL LOANS: A

CASE STUDY OF SOLAPUR DISTRICT

A Thesis Submitted to,
Solapur University, Solapur
For the Degree of Doctor of Philosophy
In
Economics
Under the Faculty of
Social Science
By

MR. SURYAWANSHI SANTOSH DASHARATH

Research Student, (M.A. in Applied Economics)
Research Place in Economics
Santosh Bhimrao Patil College, Mandrup.
Tal-South Solapur, District: Solapur-413255

Under the Guidance of

DR. KADAM SANTOSH NAGNATH

Head, Department of Business Economics
Research Place in Economics
Santosh Bhimrao Patil College, Mandrup.
Tal-South Solapur, District Solapur-413255

December -2016
 DECLARATION

I hereby declare that, the thesis entitled “EFFECTIVENESS OF

AGRICULTURAL LOANS: A CASE STUDY OF SOLAPUR DISTRICT" completed

and written by me has not previously formed the basis for the award of any

Degree or Diploma or other similar title of this or any other University or

examining body.

Place: Mandrup Suryawanshi Santosh Dasharath

Date: Research Student

i
 CERTIFICATE

This is to certify that, the thesis entitled “EFFECTIVENESS OF

AGRICULTURAL LOANS: A CASE STUDY OF SOLAPUR DISTRICT” which is

being submitted herewith for the award of the degree of Doctor of

Philosophy in Economics of Solapur University, Solapur is the result of the

original research work completed by Shri SURYAWANSHI SANTOSH

DASHARATH under my supervision and guidance and to the best of my

knowledge and belief the work embodied in this thesis has not formed earlier

the basis for the award of any Degree or similar title of this or any other

University or examining body.

Place: Mandrup DR.KADAM SANTOSH NAGNATH

Date: Research Guide

ii
 ACKNOWLEGEMENT
I am thankful to my research guide Dr. Kadam Santosh Nagnath (Head
Department of Business Economics ) Santosh B. Patil College, Mandrup, Solapur
University, Solapur, Maharashtra for inspiring me and giving the required research
guidance towards the completion of my research study.

I am extremely thankful to Dr.B.M. Bhanje principal Of Santosh B Patil

College Mandrup and also Principal Dr.Prof. N.B.Pawar, Shri Sant Damaji College,
Mangalwedha for providing me an opportunity to do research work at Solapur
University Solapur. Also thanks to college entire Staff members and staff of school
of social science, Solapur University Solapur who have taken their time in
mentoring me. I wish to acknowledge my gratefulness to them all individually to
Dr. Ashok kumar, Dr. Bhanumate (Head of Applied Economics) and Dr. G.S Kambale
and Dr. P. Vhankade of School of social Sciences, Solapur University Solapur and
Dr.S.L.Patil (B.O.S. Chairman), Dr.Chitte and Dr.V.S.Nimbalkar(Dean of Social
Science) . Moreover also thanks to my college staff member Prof Ksabe D.S, Prof.
H.R.Nagtilak, Dr. Ronge G.S Dr. Mane A.S, Dr. Dr. P.M. Honrao, Dr.Pawar R.M, Dr.
Rajesh Gavakare, Dr. Rayban S.D, Prof. Mahesh Kumar, Mr.S.N.Pawar and Principal
Dr.D.S.Tikate, Mohal.

I express my sincere thanks to Dr. Jugale V.B Professor and Director of

school of rural development, Shivaji University, Kolhapur, for his valuable advice
during the my work.

I express my sincere thanks to Librarian of Shivaji University, Kolhapur,

Solapur University, Solapur, Pune University, Pune, Mumbai University, Mumbai,
Gokhale Institute of economics and politics for providing the valuable books,

iii
government reports, research journal and other relevant material provided me
during the my research.

I wish to express my sincere thanks to Dr.Patki (Bank of Maharashtra Lead

Bank office, Solapur) for his valuable help in providing statistical data about the
agriculture finance in solapur district.

I am thankful to My Father and Mother and Life Partner Suvarna and my sun
Shivkumar encouraging me and providing all the necessary requirements; from
financial support to social motivation.

Research Student

Suryawanshi Santosh Dasharath

iv
 CONTENT
Title Page No.
Title Page
Declaration i
Certificate ii
Acknowledgment iii-iv
Content v
List of Tables vi-viii
List of Graphs ix
Chapter- I - Introduction and Research Methodology 1-21
Chapter- II- Review of Literature 22-53
Chapter- III- Profile of Agriculture and Agricultural 54-89
Finance in Solapur District
Chapter- IV- Access of Agriculture Crop Loans 90-126
Chapter- V- Effectiveness of Agriculture Crop Loans 127-163
Chapter- VI- Findings Suggestions and Conclusions 164-183
Bibliography 184-195
Questioners 196-204
 LIST OF TABLES
Table No Name of Table Page No
1.1 Agriculture Credit Supply and Agriculture 14
Development in India
1.2 Agriculture Credit Supply and Agriculture 16
Development in Maharashtra
3.1 Land Use Pattern of Solapur District 58
3.2 Cropping Pattern in Solapur District 60
3.3 Production Pattern in Solapur District 62
3.4 Yield of Main Crops in Solapur District 63
3.5 Irrigation in Solapur District 66
3.6 Growth of Seeds Supply in Solapur District 67
(2005 -2013)
3.7 Tehsil Wise Use of Chemical Fertilizer in 68
Solapur District
3.8 Agricultural Machinery and Implements in 70
Solapur District
3.9 Electricity Consumption for Agricultural in 71
Solapur
3.10 Number and Area of Operational Holding 72
3.11 Trends in Population in Solapur District 73
3.12 Bank Branches Expansion in District 75
3.13 Area wise classification of Bank Branches in
Solapur District
3.14 Advances Given by Commercial Banks, 78
Regional Rural Banks and Cooperative Banks
3.15 Priority Sector Lending in Solapur District 80
3.16 Percentage of Priority Sector Lending in 81
Total Advances
3.17 Agriculture Advance 83
3.18 Percentage of Agriculture Loans to Total 84
Advances
3.19 Percentage of Agriculture Advance in 85

vi
 Priority Sector Lending
4.1 Age Wise Classification 93
4.2 Educational Status of the Farmers 95
4.3 Agricultural Training 96
4.4 Occupational Structure 97
4.5 Housing Facilities with the Farmers 98
4.6 Main Income Source of the Farmers 99
4.7 Annual Income of the Farmers 100
4.8 Land Holding of the Farmers 101
4.9 Source of Irrigation 102
4.10 Methods of Irrigation 104
4.11 Agriculture Insurance 105
4.12 Reasons for not Taking Crop Insurance 106
4.13 Interest in Farming 107
4.14 Reason for Like Farming 107
4.15 Reason of Dislike Farming 108
4.16 Land Sell 109
4.17 Causes of Land Selling 109
4.18 Status of Poverty 110
4.19 Demand of Crop Loan 111
4.20 Per Acres Demand of Crop Loan 112
4.21 Supply of Crop Loan 113
4.22 Per Acres Supply of Crop Loan 114
4.23 Demand Supply Gap 115
4.24 Adequacy of Loan Amount 115
4.25 Purpose of Crop Loans 117
4.26 Interest Rate of Loans 118
4.27 Time For Crop Loans Sanction 118
4.28 Time Consuming Process in Loan Passing 119
4.29 Problems In Accessing Crop Loan 120
4.30 Loan History of Last Five Year 121
4.31 Sources of Loan 122
4.32 Easy Repayment of Crop Loan 124
5.1 Reinvestment in Agriculture 129

vii
5.2 Crop Loan Repayment 131
5.3 Loan Utilized for Main Purpose 132
5.4 Purpose Wise Utilization of Crop Loan 136
5.5 Purpose Wise Average Utilization of Crop 137
Loan
5.6 Impact on Cropping Pattern 140
5.7 Percent Share of Main Crops in the Study 142
Area
5.8 Impact on Production Pattern 145
5.9 Impact on Crops Yield 148
5.10 Impact on Cost Of Cultivation 149
5.11 Banking Habits 150
5.12 Impact on Access of Information 152
5.13 Consumption of Various Amenities 154
5.14 Impact on Modernization of Agriculture 155
5.15 Indebtedness of the Farmers 156
5.16 Source wise Debt of the Farmers 157
5.17 Source Wise Average Amount of Debt of the 159
Farmers
5.18 Cause of Indebtedness 160

viii
 LIST OF CHARTS

Chart No Name of charts Page No

3.1 Bank Branches 75
3.2 Distribution of Bank Branches in Solapur District 77
3.3 Percentage of Priority Sector Lending In Total Advances 82
3.4 Percentage of Agriculture Loans to total advances 85
4.1 Age Wise Classification of the Farmers 94
4.2 Educational Status of the Farmers 95
4.3 Housing Facilities 98
4.4 Main Income Source 99
4.5 Source of Irrigation 102
4.6 Methods of Irrigation 104
4.7 Reasons for not taking up crop insurance 106
4.8 Adequacy of Loan Amount 116
4.9 Problems in Accessing Crop Loan 120
4.10 Sources wise History of loan 123
5.1 Reinvestment in Agriculture 130
5.2 Crop Loan Repayment 131
5.3 Loan Utilized for Main Purpose 133
5.4 Average Utilization of Crop Loan by Various Purpose 138
5.5 Impact on Cropping Pattern 141
5.6 Percent Share of Main Crops 143
5.7 Impact on Production Pattern 147
5.8 Banking Habits 151
5.9 Impact on Access of Information 153
5.10 Impact on Consumption of Various Amenities 154
5.11 Modernization of Agriculture 155

ix
 CHAPTER-I
INTRODUCTION AND
RESEARCH METHODOLOGY

-1-
 CHAPTER-I

INTRODUCTION AND RESEARCH METHODOLOGY

1.0 INTRODUCTION
1.1 Effectiveness of Agricultural Crop Loans
1.2 What is Agriculture Loans?
1.3 Agriculture Credit System in India
1.4 Meaning of Crop Loan
1.5 Salient Features of the Crop Loan System
1.6 Role of Agricultural Crop Loans in Agriculture Development
1.7 Agriculture Credit Supply and Agriculture Development in India
1.8 Agriculture Credit Supply and Agriculture Development in
Maharashtra
1.9 RESEARCH METHODOLOGY
1.9.1 The Statement of the Research Problem
1.9.2 Objectives of the Study
1.9.3 Hypothesis
1.9.4 Secondary Sources of Data
1.9.5 Sample Design
1.9.6 Tools of Analysis
1.9.7 Limitations of the study

-2-
 CHAPTER-I

INTRODUCTION AND RESEARCH METHODOLOGY

1.0 Introduction
One cannot think of economic development in the country deprived the
development of agriculture. Agriculture plays a key role in the development of
the Indian economy. The Indian economy has experienced structural changes
over time with the expected decline in the share of agriculture in the GDP, fall
in its share from 55.1 per cent in 1950-51 to 14.6 per in 2016.1
During the post bank nationalisation in India, financial services have
expanded significantly in rural areas. This has included the funding of a large
number of rural credit projects, increases volume of formal loans, building
many new financial institutions and same mobilization of saving. The loans
assistance is valid vehicle for the farmer’s inclusive development. Financial
credit is the most world-wide and flexible transferable form of economic
resource: with cash obtained via credit one can buy anything that is for sale.
(Gordon Donald, 1976).2 The systematic flows of credit through banks have
been subject to a number of inhibitions that have worked to eradicate most
small farmers. Agricultural Loans provide opportunities for creative
development, and small farmers have been distant more limited in access to
these opportunities than other sectors. In ideal form, the situation of
agricultural crop loans for farmers goes as follows: the government of India
and Reserve Bank of India loans money each to an agricultural bank, which in
turn relend the funds directly, or through cooperatives to farmers. The farmers
use the funds to purchase productive inputs. Which are collective with family

1
Economic Survey 2015-2016, government of India, Finance ministry of India.
2
Gordon Donald(1976), Credit For Small Farmers In Developing Countries,p.17
-3-
labour to produce more output. The additional output have sold and the
earnings are sufficient to repay the loan and leave the farmer better off. The
payments received from the farmers by the agricultural bank or any other
institution are sufficient to regenerate lending capacity, to cover
administrative costs and to pay the interest on the government loan. Such a
program consumes no resource; the money committed simply constitutes a
revolving fund. The loans have repaid and the interest charges are sufficient to
cover costs and any defaults.
1.1 Effectiveness of Agricultural Crop Loans
Economics literature uses a variety of terms to express concept of
effectiveness as do the literature of other discipline. However theses terms are
not always defined nor interpreted consistently within and across discipline.

Effectiveness is the capability of producing a desired result. When

something is deemed effective, it means it has an intended or expected
outcome, or produces a deep, vivid impression.3

Efficacy, efficiency, and affectivity are terms that can, in some cases, be
similar with the term effectiveness. The term effective is sometimes used in a
quantitative way, "being very effective or not very effective". However,
neither effectiveness, nor effectively, inform about the direction (positive or
negative) and the comparison to a standard of the given effect. Efficacy, on the
other hand, is the extent to which a desired effect is achieved; the ability to
produce a desired amount of the desired effect. Different to the
term efficiency, the focus of efficacy is the achievement as such, not the

3
http://en.wikipedia.org/wiki/Effectiveness#cite_note-1
-4-
resources spent in achieving the desired effect. Therefore, what is effective is
not necessarily efficacious, and what is efficacious is not necessarily efficient.4
“Effectiveness of agricultural loans define a measure of how well the
output of agricultural crop loans achieve the specified objective of those
agricultural loans”.
1.2 What is Agriculture Loans
One of the chief inputs for agricultural development is the ‘credit’. Credit
means a loan or advance. According to The Great Lifco Dictionary (2006),
‘credit’ means confidence in a person’s morality and ability to pay. It also
means ‘belief of others that a person, business, company can pay debts’. In
economic literature, credit means the ‘entitlement to resources’.
Appropriate credit institutions and credit policies, can to lead a society
towards a sustainable track. Agricultural Loan enhances productivity and
promotes standard of living by breaking vicious cycle of poverty of small-scale
farmers. Adegeye and Dittoh (1985)5 defined agricultural credit as the process
of obtaining control over the use of money, goods and services in the present
in exchange for a promise to repay at a future date. Ogunfowora et al. (1972)
6 reported that, credit has not only needed for farming purposes, but also for
family and consumption expenses, especially during the off-season period.
The practice of kind loans has emerged to avoid diversion of credit and
to strengthen repayment capacity. Now a day agriculture credit has linked with

4
http://en.wikipedia.org/wiki/Effectiveness#cite_note-
5
Adegeye, A.J. and Dittoh, J.S: Essentials of Agricultural Economics. Impact Publishers
Economics Nigeria, Limited, Ibadan (1985).
6
Ogunfowora, O., Essang, S.M. and Olayide, S.O.: Capital and credit in Nigerian
agricultural development. Nigerian Rural Development Study Paper No. 6, University
of Ibadan, Ibadan, Nigeria (1972)
-5-
marketing, which also aims at reducing incidence of default. 7 Credit in kinds is
also an effective way of avoiding or minimizing defaults.
Credit supply is an important determinant of investment in agriculture
(Shetty 1990)8. Since the nationalization of commercial banks in 1969, India
had strongly followed a policy of “social and development banking” in the rural
areas. As a result, formal institutions of credit provision, mainly commercial
banks, emerged as important sources of finance to agriculture moving
moneylenders and landowners.
Currently, the rural credit situation looks unattractive in meanness of
many measures and constitution of several committees and task forces. It has
been a constant target of policy limitation, particularly after 1991, which
manifested in three broad areas, viz. enervation of the institutional planning
for rural credit, disinvestigation of credit flow to agriculture through the
mechanical application of Basel norms, and squeeze on resources available for
agricultural credit operations (Satish, 2007)9.
1.3 Agriculture Credit System in India
In India, a wide time, there was no recognized agency for providing
agricultural credit. Agricultural in India, being small scale and subsistence, the
cultivators were borrowing only from non-institutional agencies such as
moneylenders, indigenous bankers, friends, and relatives. Institutional credit
in India made a launch in the year 1904 when the Co-operative Credit Societies
were start to provide agricultural credit. The passing of the co-operative credit
societies Act 1904 covered the way for starting co-operative credit societies in
India. Even after the co-operatives were ushered, in the initial years, their
7
V.B,Jugale(1991) Theories of Agricultural Finance, Atlantic Publishers & Distributors, p-97
8
Shetty, S. L. (1990) “Investment in Agriculture: A Brief Review of Recent Trends”, Economic
and Political Weekly, February 17.
9
Satish, P. (2007) Agricultural credit in the post-reform era. A target of systematic policy
coarctation, Economic and Political Weekly, 42(26): 2567-2575.
-6-
impact was poor and the disbursement of credit by them was dismally
insufficient and inadequate. In fact, during the first three decades of the
century, the village moneylender was the main source of finance for farmers.
Several investigations and studies such as Sir Malcolm Darling’s Report (1935)
and the preliminary and statutory reports of the Reserve Bank of India (1936
and 1937) emphasized the fact that moneylenders supplied almost the whole
of the farm finance. India got independence on 15 August 1947. At the time
of India’s first five-year plan (1951 to 1956), 1952 the farm credit structure has
dominated by non-institutional agencies.
Over the years, India approved a multi-agency methodology for
providing agricultural credit. The Reserve Bank of India, required to make
stronger institutional finance for agricultural credit. Hence, an important
committee called the All India Rural Credit Survey Committee was establish in
1952 to enquire in detail into the position of rural credit and the performance
of institutional agency vis-à-vis non-institutional agencies.
The key milestone of rural credit system are Rural Credit Survey
Committee Report (1954) and acceptance of its recommendations,
nationalization of major commercial banks (1969 and 1980), establishment of
Regional Rural Banks (1975), establishment of National bank for agriculture
and rural development(1982) and the ongoing financial sector reforms since
1991. Further, several initiatives like Kisan Credit Card Scheme(1998-99),
Special Agricultural Credit Plans, RIDF Scheme(1995-96), Farm credit
package(31 March 2004), Interest subvention to farmers(2006-07), Extension
of interest subvention scheme to post harvest loans , Interest subvention for
loan(2006-07) restructured in the drought affected states in 2012, Agriculture
Debt Waiver and Debt Relief Scheme, (ADWDRS) 2008, Revival Package for
Short Term Cooperative Credit Structure(2005), etc, are put in place to

-7-
increase the flow of credit to agriculture sector. An important development in
this regard is the phenomenal growth of Self-Help Groups since 1990s.
According to Reserve Bank of India, Credit system should have following
features. 10 The credit system for modern agriculture should integrate the
credit with services for ensuring the arrangement of inputs and services along
with credit.11 The absence of credit is better than facile credit, because the
farmer have used for wasteful consumption purposes that may impose an
extra burden on him.12 On the other hand, facile credit is more dangerous
because it may lead the borrower to avail credit without any basic needs.
Under the credit system, all areas and farmers (specially small and marginal
farmers) should be cover. In other word, the credit system is so efficient to
expand its activities horizontally as well as vertically. Under the good system of
credit for modern agriculture, emphasis should be given to issue loans for
production purposes. However, the consumption of loans should not be
prohibiting completely. The loans should be provide based on anticipated
production or increased income that would occur due to the use of credit
rather than tangible security or existing income. It will help the small farmers
to avail the credit and implement their plan of cultivation. In a credit system,
the cost of handling credit and services should be lower. In the absence of
this, most of the farmers will deny credit that may cause a burden beyond
their repaying capacity. The credit system should be such, which mobilizes
sufficient resources to provide finance for the purpose of investment required
for modern agriculture.

10
Reserve Bank of India
11
https://books.google.co.in/books?isbn=817629439X
12
https://books.google.co.in/books?isbn=8184501595
-8-
 Some feature of sound agricultural credit system have been determined
by the all India Rural Credit Survey Committee.13These are agricultural credit it
should be associated with the policies of the state. It should be an effective
alternative to the private agencies of credit. Also it should have the strength of
adequate resources and of well-trained personnel. The agriculture credit
system should lend not merely on security of land and other usual forms of
security but also on the security of anticipated crops. And it should effectively
supervise the use of credit and consequently bear in mind the borrower’s
legitimate needs and interests.
1.4 Meaning of Crop Loan
Though All India Rural Credit Survey Committee 1954 and the V.L.
Mehra Committee on cooperative credit (1960) recommended the adoption of
crop loan system in all the states, for one reason or the other, it was not
implanted in several states of the country immediately. After a lapse of five
year this was introduced in country during 1965 and in Andhra Pradesh from
kharif 1966. The scheme has been applied with the twin objectives of treating
crop as security instead of landed property and fixing the scale of finance
depending upon the actual farm expenditure.
These loans are to be paid back within a period ranging from 6 months
to 18 months. Crop Loan is also called as investment loan, production loan and
short term loan. All crop loans are said to be short term loans, but the length
of repayment period various according to during of the crop. The farmers
requires this type of credit to meet the expenses for the ongoing agricultural
operations on the farm like sowing, fertilizers, application, plant protection
measures, payment of wage to casual Labourers, ect. He is supposed to repay
the loan from the sale proceeds of their crop raised.

13
all India Rural Credit Survey Committee(1951), government of India
-9-
 Short-term crop loans are provided to the farmers for the purchase of
various inputs like seeds, fertilizers, pesticides, etc., and also for meeting
expenses of Labour, irrigation, etc. These loans are extended on the basis of
land and cost of cultivation of the crops grown, subject to the repayment
capacity of the farmers. Crop loans are prepared before the start of the sowing
season and recovered after harvest. The crop loan requirements of the
farmers be determined by the area of cultivation, category of land, the nature
of crops, and whether promoted practices of cultivation have been accepted.
Since crop loan is for one season, its recovery is made in one
installment after the harvest of the crop. Crop loan is an annual requirement
and farmer has to borrow fresh loan for new crop season every time.
Therefore, he has to repay the earlier loan with interest within stipulated time.
Since this loan is required every season/every year, the procedure of getting
this loan is simple and convenient and it is made available by the District
Central Co-operative Banks through the village Co-operative Credit Society and
commercial banks. So the farmer gets his loan in the village itself14
Short term loans to Primary Agricultural Cooperative Societies are
mainly in the form of Crop loan. The crop loan scheme is in vogue in
Maharashtra since 1950. The main features of this scheme are:-
The crop loans are arranged on the basis of the projected cost of
production of the crop. The crop loan is given partly in kind and partly in cash.
(Since 2006 they are given entirely in cash) Loans are recovered through the
proceeds of sales of the agricultural produce.

14
―Manual on Produc on Oriented System of Lending for Agriculture Published by
RBI
- 10 -
1.5 Salient Features of the Crop Loan System
In 1945 the Agricultural Finance Committee suggested the main
features of this system. They are as follows,
I. The credit necessities of the farmers are to be based on the cost of
cultivation (variable cost) of the crop.
II. The primary agriculture credit societies should try to meet in full all
short term needs of its members.
III. The credit worthiness of a member borrower should be assessed on the
basis of his repaying capacity.
IV. The eligibility of receive the loan is not gauged by the ownership of the
land but by the factor that he is a bona fide farmers who needs credit
for cultivation.
V. The crop loan should be given based on the hypothecation of the crop.
VI. The distributions and recovery of loan are to be made in accordance
with the crop production schedule.
VII. The loan should be given both in cash and kind, kind component is
related to quantum of actual total inputs required for production of
particular crop.
VIII. The quantum of loan should be fixed according to the variety and the
season in which it is grown and type of crop, i.e., irrigated or rainfed.
IX. Crop loan should be recovered with tie up arrangement, i.e. linking
credit marketing.
X. Crop loan is fixed by the district consultative committee which consist
of experts from the field of agriculture, animal husbandry, banking, ect.

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1.6 Role of Agricultural Crop Loans in Agriculture Development
Adequate and cheap credit is a boon for the economic development of
a country. Economic progress can easily be achieved by providing credit to
farmers, industries, traders and business.15 One of the major successes in the
post-independent India has been the spread of institutional machinery for
credit and decline in the role of non-institutional sources.16Agricultural crop
loan playing important role in development of agriculture economy in India.
Agricultural crop loan provided by commercial and cooperatives banks. Crop
loan helps farmers invest in generating assets to produce farm income through
agriculture production. Investments in farm generate farm income sustainably
when credit is simultaneously adequately supported by backward and forward
linkages, viz. inputs of production, technology and services.17 The World Bank
in its sector policy paper as back as in 1975 has aptly reiterated18 “Credit is
often a key component in the upgrading of agriculture. Not only can credit
eradicate financial constraint but it also accelerates the adoption of new
technology. Credit facilities are also an important part of commercialization of
the rural economy. However, no amount of credit even at the most reasonable
rates can guarantee higher productivity or income among the rural poor, as
the success depends upon many factors including the availability of inputs and
services, comprehensive credit policies, Credit institutions and proper delivery
channels”.

15
Nair M. V. (2012), ‘Report of the Committee to Re-Examine the Existing
Classification and Suggest Revised Guidelines With Regard To Priority Sector Lending
Classification and Related Issues’, Committee Report Submitted to RBI, 21 February
2012.
16
http://sol.du.ac.in/
17
http://indiamicrofinance.com/author/amrit
18
http://sol.du.ac.in/
- 12 -
 Importance of crop loan can be defined way of economic role, social
role and technological role.
A vast majority of our farmers are very small size, more than 80 percent
of farmers in India under the category of small and marginal. If they are
provided a credit either for their farm or for their subsidiary activities, they can
improve their standard of living. Productive credit improves the crop yield and
increase the income level. This will bring in the multiplier and acceleration
effect on family consumption, farm investment, saving and better and
sustainable employment in agriculture. Moreover agriculture crop loan
motivate a farmers to cultivate cash crop for repaying the borrowed credit.
And also cash crops help to development of agro-based industry. The wastes
resources can possibly be mobilized for additional economic development
through credit facility. Also the modernization of agriculture is possible
through provision of credit facilities.
The preparation of any economic policy necessity to focus on the social
factors. Credit is definitely a force of social changes which is rather internally
hidden in society. This is because normally in rural area women’s are more
economical work more than men’s and contribute more to development. They
may better utilized crop loan, borrowed so far. Some economic activities,
which really uplift the rural women to self-reliance by providing loans for milk
animal, agriculture, aquaculture and other small industry. So credit may be an
intensive to bring out the women from traditional.
It is also possible that the technological role means applications of
modern technical knowledge to the various phases of production through
borrowed capital. Credit may be used for current expenses and investment in
agriculture includes the expenditure on bio chemical technology, tillage and
preparation of land, labour charges, seedling and plantation and harvesting

- 13 -
expenses, land development, soil conservation, and minor irrigation, farm
mechanization. The modern bio-chemical and mechanical technology is
possible only when credit hypothecation facility is available to farmers.
1.7 Agriculture Credit Supply and Agriculture Development in India
Institutional credit (direct and indirect credits from co-operatives,
Scheduled Commercial banks, Regional Rural Banks and Rural Electrification
Corporation) for agriculture and allied activities increased many folds during
the last three decades. Loans issued to agriculture during the period 1980-81
to 2010-11 was increased from Rs.34.36 billion to Rs.3448.78 billion. However
the increased credit flow to agriculture has resulted in the proportionate
increase in foodgrians production. The overall production of food grains was at
129.59 million tonnes in 1980-81 where it was raised up to 244.49 million
tonnes in 2010-11. The per capita availability of food has witnessed a decline
during this period. The consumption of food declined from a peak of 454.8
grams per day to 437.1 grams per day during the period of 1980-81 to 2010-
11.
Table 1.1
Agriculture Credit Supply and Agriculture Development in India
Year Loans Issued Foodgrians Per capita Percent of
(Short-term production Availability agriculture
and Long-term) Production of food share in GDP
( in Billion) (Million Tonnes) (Grams Per Day)
1980-81 34.36 129.59 454.8 30.20
1985-86 71.59 150.44 453.4 26.21
1990-91 101.88 176.39 485.6 24.65
1995-96 236.92 180.42 495.5 22.39
2000-01 481.87 196.81 454.4 19.43
2005-06 1440.21 208.60 422.4 15.83
2010-11 3448.78 244.49 437.1 15.78
Source: Handbook on Indian economy, Reserve Bank of India, 2014-2015

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 In India, the share of agriculture in the gross domestic product has
registered a steady decline from 30.20 per cent in 1980-81 to 15.78 per cent in
2010-11. Agriculture growth has remained lower than the growth rates
witnessed in the industrial and services sectors. But the number of people
dependent on agriculture for their food and livelihood has remained
unchanged.
1.8 Agriculture Credit Supply and Agriculture Development in
Maharashtra
Maharashtra is one of the most important states of India given its size
and contribution to the nation’s income and wealth. It is often referred to as
being the commercial, financial, and industrial and entertainment capital of
the country. While Maharashtra is a highly industrial state of India, agriculture
continues to be the main occupation of the people. About 61% of the people
directly or indirectly depend on agriculture and allied activities for their
livelihood. Principal crops of the state are rice, jowar, bajra, wheat, tur, mung,
urad, gram and other pulses. Maharashtra is a major producer of oilseeds like
groundnut, sunflower, soyabean etc. Major cash crops of the state are cotton,
sugarcane, turmeric and vegetables. Horticulture has a very important place in
this state.19 The state accounts for about 11.81% of the India‘s gross cropped
area (GCA) and contributes to 13.31 % of the country‘s gross domestic product
(GDP) from agriculture in 20013-14. 20 The services sector is the largest
contributor to the state’s economy. Services account for 63% of the state’s
economy and industry 29%. The share of agriculture and allied activities has
consistently been declining over the years and is currently around 8%.21

19
Task force on Agriculture development
20
Economic Survey,2014-2015
21
Progressive Maharashtra – 2014, February 13, Trident Hotel, Nariman Point,
Mumbai
- 15 -
 The key issue of this sector in the state is low productivity in food grains
as compared to national and interstate productivity. It is observed that
Maharashtra contributed to half the country‘s production 42% of Jawar, 21%
of cotton, 29% of sugarcane and 30% of onion during the year 2013-14.22
Institutional credit by co-operatives, Primary Land and Development
Banks and Regional Rural Banks and District Central Cooperative banks for
agriculture and allied activities increased many folds during the last three
decades. Loans issued by various institutional sources to agriculture in
Maharashtra increased from Rs.208103 lakhs to Rs.2442673 lakhs during the
period of 1980-81 to 2007-08. Moreover in the same period the foodgrians
production also increased from 9472 thousands metric tons to 15413
thousands metric tons. The table also show that yield of foodgrians increased
up to 1183 kg from 692 kg per hectors in the same period.
Table 1.2
Agriculture Credit Supply and Agriculture Development in Maharashtra
Year Loans Foodgrians Yield Percent of
Issued* production Kg per agriculture
( in lakhs) Production Ha share in GDP
(000 MT)
1980-81 208103 9472 692 27.7
1990-91 292982 12181 846 22.9
2000-01 2394247 10133 757 17.4
2007-08 2442673 15413 1183 12.8
* Includes Primary Agricultural Credit Societies, Primary Land and Development Banks and
RRB and DCC
Source: various issues of Economic Survey and Human Development Report of
Maharashtra government, Year -2009

22
Handbook on Indian Economy, Planning Commission of India,2015
- 16 -
 However the share of agriculture in sate gross domestic product also
decline up to 12.8 percent from 27.7 percent during the period of 1980-81 to
2007-08

1.9 Research Methodology

1.9.1 The Statement of the Research Problem

Farmers are the pillar of agricultural economy. A majority of the farmers

find borrowing necessary as their own farm savings are inadequate to finance
various agricultural development activities. Crop loans is one of the most
important aspects to increase agricultural output and to improve the standard
of living of farmers at all the magnitude. It has argued that crop loan provides
facility over resources the needed to the farmers (Lipton 1976).23 Crop loan
has assumed helpful for changing the cropping patter production, yield,
distribution of production and other social economic changes with sustainable
agriculture development for farmers. The introduction of new agricultural
technology in India the mid-1970s, the need for improving the quality of
institutional credit (timely and adequate loan amount) to agriculture has
largely felt.
In this respect, several studies have conducted at different districts in
the state and India in connection with the supply by the institutional credit and
its impact on agriculture development. However, there were not a single study
on the “Effectiveness of Agricultural loans” conducted at the district level. In
view of this, there is a need for this kind of research at gross root level that
would be very useful for the changing the economic status of the farmers in
the Solapur District of Maharashtra state.

23
Lipton, M. (1976). Agricultural Finance and Rural Credit in Poor Countries. World
Development, IV (7): 543-53.
- 17 -
1.9.2 Objectives of the Study
The objectives of the present study are…
I. To examine the growth of agriculture and agriculture finance in
Solapur district.
II. To study the purpose of agriculture crop loan taken by the
farmers in study area.
III. To study the access of agriculture crop loans in the study area.
IV. To study the effectiveness of agriculture crop loans taken by the
farmers study area.
V. To suggest some solutions on effectiveness of agriculture crop
loans in the study area.

1.9.3 Hypothesis

The basic idea of my research work has been that the Effectiveness of
Agriculture Loans greatly influence of agriculture development and growth
also farmers standard of living and on closer examination, the agricultural
development. During my examinations, I have started hypotheses, as follows:
“Marginal and small farmers class size of land holding and effective
utilization of amount of crop loan are associated”

1.9.4 Secondary Sources of Data

The study have exclusively based on the primary and secondary data.
The relevant secondary data have been collected from various issues of Report
on Currency and Finance (RBI), Banking Statistics (RBI), Report on Trends and
Progress in Banking in India (RBI), RBI Bulletin (RBI), and Economic Survey of
Government of India and Government of Maharashtra.

- 18 -
 Also secondary data collected from Solapur District Socio-
Economic Survey Report, Statistical Abstract of Maharashtra-Part-II, and
National Bank for Agriculture and Rural Development and State level banker
committee, pune and various research Working papers.
1.9.5 Sample Design
Availability irrigation facilities not only enable the farmers to make use
of modern inputs such as Credit, Chemical fertilizers, High yield varieties etc,
but also helps to raise cropping intensity in agriculture, thereby raising the
level of agriculture output. In fact, both level and quality of irrigation are
important in determining the efficiency of agriculture through crop loan.
District Taluka Sr.No Name of Village Bank Sample
1 Marawade Bank of India 20
2 Ghodeshwar Bank of MH 20
3 Bhose Bank of India 20
Mangalwedha 4 Borale SBI 20
5 Nandeshwar Bank of 20
Maharashtra
Solapur 1 Javala Central Bank 20
of India
2 Shivane SBI 20
Sangola 3 Akola Union Bank 20
of India
4 Wadegaon Union Bank 20
of India
5 Ekhatpur SBI 20
Note: MH- Maharashtra, SBI- Sate Bank of India.
Hence, on the basis of the level of irrigation facility, talukas of the
district were classified in two category such as more irrigated talukas and less
irrigated taluka. From each category, one taluka has been selected.
Mangalwedha taluka is selected as more irrigated talukas (25.65 percent of
talukas geographical area) having area under irrigation. Sangola taluka is
selected as less irrigated taluka (17.79 percent of talukas geographical area)

- 19 -
having less irrigated area (percent).hence, these talukas viz. Mangalwedha and
Sangola have been selected for intensive study at farm level analysis.
At the second stage, 10 village were selected from these two talukas viz
5 villages from Mangalwedha and 5 villages from sangola taluka. Moreover, 20
farmers were selected randomly from the each village based on the
appropriate representation of the farm size of the farmers. Hence, study
covered 100 farmers from 5 villages of Mangalwedha and 100 farmers from 5
villages of sangola taluka. Thus total numbers of sample farmers from these
two talukas were 200.
Farmer’s selection from a village
Farm size wise selection of farmers from each village is per below,
Sr.No Classification of farm size No. of farmers
1 Marginal Farmers 4
2 Small farmers 4
3 Semi medium farmers 4
4 Medium farmers 4
5 Big farmers 4
Total 20

At the 3rd stage, 20 farmers were selected from each village based on
the appropriate representation of the farm size of the farmers. Marginal
farmers 4 from each village, small, semi-medium and medium and big farmers
4 from each villages.
Moreover, fieldwork was carried out in these two taluka in August 2015
to December 2015 to collect primary information on the relevant variables. For
this purpose, scheduled methods was used.

- 20 -
1.9.6 Tools of Analysis
Data analysis has mainly used Microsoft Excel 2013 statistical functions
to produce data and tabulated in the SPSS format for ease of interpretation
and drawing inferences. Moreover other few tools have used for the research
this are Percent of change, percent of share in total, Compound growth rate
and also some charts are used in the analysis.
1.9.7 Limitations of the study
1. This study covered only two talukas of Solapur district and these talukas
were selected on basis of more irrigation and less irrigation facilities
available to the farmers.
2. In our study we have considered that, the agricultural loans means the
crops loans provided by commercial banks i.e. Bank of Maharashtra,
Bank of India, State bank of India, Union bank and central bank working
in study area. Moreover effectiveness of crop loan measured on basis of
before and after analysis method of aggregate level.

- 21 -
 CHAPTER II

REVIEW OF LITERATURE

22
 CHAPTER II
REVIEW OF LITERATURE
A literature review creates a backbone support in knowing views, ideas,
nature, and progress of effectiveness of agricultural loans. The theme, which
has raised here, have related with effectiveness of loans.
After the mid-sixties, a large number of studies have conducted on title
of agricultural finance, credit and loans. In addition, most of the researcher had
conducted research on institutional and non-institutional finance to agricultural
sector in India and its role and impact. Most of the studies concentrated on
evaluating the impact of agricultural credit, Loans and finance on the level of
poverty, indebtedness, income, consumption expenditure, etc. of the marginal
and small farmers. A brief review of these studies have given as under:
Report of all India Rural Credit Survey Committee (1954)1 was setup by
the Reserve bank of India in 1951 to enquire into the agricultural credit situation
in India. A detailed and extensive survey has conducted under the chair of
Mr.A.D.Gorvala. The committee estimated that of the total rural credit only
about 3 percent of the credit has provided by the Government, about
3.1percent by co-operatives and 0.9 percent only by commercial banks.
Moneylenders, indigenous bankers, friends and relatives provided the balance
of 93 percent of rural credit. The findings of the committee confirmed the
dominant position occupied by moneylenders in the system of rural credit. This
committee observed, “The credit fell short of the right quantity, was not of the
right type and did not serve the right people”
Shah (1961)2 worked on “Credit for Small Farmers” to examine the
position of the small cultivators with regard to borrowing from co-operatives in
1957-58. The study was conducted in Nizamabad district of Andhra Pradesh

1
RBI, report of the All India Rural Credit Survey Committee, 1954
2
Shah, A.C. (1961), “Credit for Small Farmers”, Indian Journal of Agricultural
Economics, Vol. XVI (3), pp. 56-59.

23
state. He observed that there is a direct relationship between average size of
cultivated holdings and percentage of borrowing families from co-operatives to
total borrowing families. He also observed that, the small farmers utilized the
major proportion of borrowing in meeting family expenditure. The repayment
capacity was poor of the small farmers in districts.
Tiwari (1965)3 in his study on “Co-operative Finance: Tests of Success”
analysed the demand peculiarities and the factors influencing borrowing based
on the data of Reserve Bank of India. He observed that, the proportion of
indebted families in areas, which had a fairly well developed economy, was
higher than the districts that were predominantly food grain producing. Areas
with predominance of food crops had proportionately inferior repaying
capacity than that of the areas with cash crops. The large proportion of total
debt among the big and large cultivators was contract for agricultural purposes,
whereas among the medium and small cultivators it was higher for
consumption purposes.
Patil (1967)4 in his paper on “A Case Study of Repayment of Crop Loans
and Causes of their Non-Repayment in Maharashtra State” tried to find out the
position of repayment and the causes of non-repayment of crop loans in Kulaba
district of Maharashtra state during 1964-65. While selecting members, two
groups has formed. The first group consisted of defaulters who did not pay crop
loan during 1964-65 and the second consisted of non-defaulters who paid crop
loan during this period. Out of the total number of defaulters and non-
defaulters from each randomly selected society, 50 percent defaulters and 50
percent non-defaulters was randomly selected. The study highlighted that, the
defaulters constituted only 27 percent in large holdings as against 63 percent

3 Tewari, R.N. (1965), “Co-operative Finance: Tests of Success”, Indian Cooperative

Review, Vol. 2 (3), pp. 392-398.
4
Patil, S.M. (1967), “A Case Study of Repayment of Crop Loans and Causes of their
Non-Repayment in Maharashtra State”, Indian Journal of Agricultural Economics, Vol.
XXII (3), pp. 87-91.

24
from smallholdings. Medium size of holdings had equal number of defaulters
and non-defaulters, i.e., 50 percent. Its means larger the size of holding, greater
will be the capacity of repaying loan. The total annual income earned per family
in the defaulter group was relatively less than the non-defaulter group in the
case of small and large size-group of holdings while it was more in the case of
medium size defaulter group as compared to the corresponding non-defaulter
group. Majority of the defaulters were unable to repay the loans mainly due to
adverse crop season, higher domestic expenditure, and maintaining a big size
of the family.
Tiwari (1969)5 in his study on “Agriculture Indebtedness in Hilly Farms of
Uttar Pradesh” attempted to examine the agricultural indebtedness in hilly
farms of Almora district of Uttar Pradesh in 1962-63. 100 farm households were
selected and grouped under five categories, viz. 0.50-1.50, 1.50- 2.50, 2.50-
3.50, 3.50-5.00 and 5 acres and above size-groups. He revealed that, 60 percent
of the farming households were under debt. In the case of source of credit,
moneylenders were providing 70.63 percent of the total debt. In the large
farm-size, more than 57 percent of credit requirements has met by the
government, while only 15.80 percent by the local moneylenders. On an
average, 46.15 percent of the total loan has taken for productive purposes,
while 53.85 percent for unproductive purposes. The average debt per family
and per indebted family was Rs. 305.40 and Rs. 469.27 respectively. The study
also brought out the fact that as the size of holding increases the percentage of
loan taken for productive purposes increases.
Vyas et al. (1969)6 worked on “New Agricultural Strategy and Small
Farmers: A Case Study in Gujarat”, to examine the viability of the small and

5 Tewari, S.C. (1969), “Agriculture Indebtedness in Hilly Farms of Uttar Pradesh”,

Indian Journal of Economics, Vol. XLIX (1), pp. 449-452.
6
Vyas, V.S.; Tyagi, D.S.; and Misra, V.N. (1969), “New Agricultural Strategy and Small
Farmers: A Case Study in Gujarat”, Economic and Political Weekly, Vol. 4 (13), pp. A49-
53.
25
medium farmers in Gujarat. He found that, for the small farmers whether
adopters or non-adopters of the new agricultural technology, farm business
income was insufficient to meet the customary household consumption
requirement and hence these farms may be termed as non-viable. Non-adopter
medium farmers were also non-viable. In all, 55 percent of the sampled farmers
were non-adopters. The study also revealed that household consumption
requirements are likely to vary from farmer to farmer.
Report of the All India Rural Credit Survey Committee (1969)7 appointed
by the RBI in July 1966 in order to measure the credit needs and volume of
institutional credit available in aggregate for agriculture and to make suitable
recommendations. The committee was headed by Sri.B.Venkatappiah. The
objective of the committee was to review the situation of agricultural credit in
India, since the implementation of the All India Rural Credit Survey Committee,
1954. The committee observed that mostly the performance of co-operatives
was far better and their share in rural credit had increased to about 30 to 35
percent of rural credit. However, it stated that there were certain black spots
indicating shortcomings in the co-operative credit, added mostly big farmers
alone has benefited by co-operatives and small farmers were completely left
out of the purview of the co-operatives.
Subramanian et al. (1971)8 in his study on “Credit Needs and Availability
to Farmers” to know the requirement, supply, and shortfall of farm credit in
Tamil Nadu state. He found that on an average, 40 percent of farm expenses
have met by borrowed funds. The total requirement of credit increases with an
increase in the farm-size. The widest credit gap has observed in the smaller
holdings. The credit from co-operatives accounted for 61.73 percent of the
total credit supply. Commercial banks have a share of about 13 percent in the

7
RBI, report of the All India Rural credit Review Committee, 1969
8 Subramanian, S.R.; Ramamoorthy, K.; and Varadarajan, S. (1971), “Credit Needs and
Availability to Farmers”, Indian Journal of Agricultural Economics, Vol. XXVI (3), p. 558.
26
total supply of credit. The moneylenders and other private agencies supplied
the balance. The co-operatives helped only large farmers. The small farmers,
who require large credit in relation to farm expenses, were able to get least
benefit from the organized sector.
Grag (1971)9 in his paper on “credit representation of changing
agriculture”, attempted to estimate the credit requirement of farmers in the
changed pattern of agriculture. This paper was based on primary data and
primary data was collected through 400 farmers interviews was taken from
Bihar state. He concluded, that the provision of credit had helped not only in
increasing the total farm production and the income of the farmers but also in
increasing the rate of growth of the national economy.
Rao (1971)10 in his paper titled on “Agricultural Financing of Small
Farmers in Coimbatore District of Tamil Nadu”, studied the agricultural
financing of small farmers. Chinnatadakam village in Coimbatore district of
Tamil Nadu state have selected for investigation. The village consisted of 207
cultivators of whom 86 percent may be categorize as the small farmers. The
average area cultivated by these 18 farmers is 4.39 acres. The study highlighted
that the average indebtedness per holding for the 18 farmers was Rs. 4,372.
The average indebtedness per holding was Rs. 400 in the smallest size-group
and rose to Rs. 6,500 in the size-group of 7.50 to less than 10.50 acres. The
smallest size-group depended entirely on moneylenders, those in the higher
size-groups depended mostly upon land development banks, co-operative
societies and state banks. The total cash expenditure on cultivation exposed
that the small farmers in the smallest size group did not apply fertilizer or
pesticides unlike those in the higher size-groups. The data reveal that the

9
Garg,J.S, “credit representation of changing agriculture” Indian Journal of agriculture
economics, Vol.26,No,4,1971,pp-555-556.
10 Rao, V.S. (1971), “Agricultural Financing of Small Farmers in Coimbatore District of
Tamil Nadu”, Indian Journal of Agricultural Economics, Vol. XXVI (3), p. 565.

27
farmers operating land less than 2.50 acres are indigent and too poor to invest
in wells and pump-sets.
Sharma and Prasad (1971)11 studied on “credit need of the farmers of
different farm sizes and of different regions and at different stages of
technological development in agriculture”. They observed that, irrigated farms
and farms which had already adopted improved technology required far more
credit. Provision of adequate credit had increased the income of the farmers
substantially even at the existing levels of technology.
Saha and Dutta (1971)12 worked on “The HYV Programme and Problems
of Finance for Small Farms in Assam (A Case Study of Goalpara District)”, to
examine the HYV programme and problems of finance for the small farms in
Goalpara district of Assam state. The sample consisted of 72 households
including 24 households of the small farmers (2.50 to 5 acres) and 48
households of the marginal farmers (1 to 2.49 acres) from eight villages fewer
than four community development blocks in Goalpara district. The study
concluded that the average per household and per capita income of the two
groups together came to about Rs. 1,800 and Rs. 300 respectively. If a sum of
Rs. 300 has taken as the minimum per capita income for subsistence living,
58.33 percent of the small farmers, and 53.46 percent of the marginal farmers
were below the poverty line. The traditional sources of credit are so
exploitative in nature that it was not possible for the small farmers to come out
of the vicious circle of low production, low investment, and income by adopting
better and improved technology.

11
Sharma J.S and Prasad B (1971) “An Assessment of production credit needs in
developing agriculture” Indian Journal of Agricultural Economics, Vol.25,No 4 ,(oct-
dec),1971,pp524-532.
12
Saha, N.; and Dutta, P.C. (1971), “The HYV Programme and Problems of Finance for
Small Farms in Assam (A Case Study of Goalpara District)”, Indian Journal of
Agricultural Economics, Vol. XXVI (3), pp. 556-560.

28
 Thakur (1973)13 in his paper “Small Farmers and Co-operatives Over
dues: Views,” examined the prevailing conditions of the small farmers and co-
operatives credit and co-operative more than dues of Sangli district of
Maharashtra state. The study revealed that, the amount of loan per acre
advanced to the small farmers (Rs. 347) was the highest as compared to the
medium (Rs. 177) and big (Rs. 236) farmers. The co-operative society has biased
towards the small farmers in advancing loans. The position of the small farmers
from the over dues point of view was also worse than the medium farmers were
and not very much comfortable as compared to the big farmers. In excess of
dues per acre in the case of small farmers (Rs. 114) were quite large as
compared to the medium farmers (Rs. 60) and only little less as compared to
the big farmers (Rs. 153). It was a common experience of those working with
agricultural credit that the poor small farmer often behind somebody's back
mortgages sells his holding. To the professional moneylenders to pay back the
amount of previous loan. To take the fresh loan from the co-operative societies
on the same piece of land. This ultimately turns such the smallholders into
agricultural labourers to the benefit neither of the smallholder, nor the co-
operative society.
Singh et al (1976)14 in his study studied on “Distribution and utilisation
of cooperative credit in district Lucknow” studied the distribution and
utilization of cooperative credit among the selected 340 farmers in Lucknow
district of UP. Had reported that on an average about 73.71 percent of the farm
loans were utilised for productive purposes. He also point out the size of the
farm increased the utilisation of the loans had also increased.

13
Thakur, D.S. (1973), “Small Farmers and Co-operatives / Co-operatives Overdues:
Views”, Indian Co-operative Review, Vol. X (3), pp. 371-376
14
Singh,G.N.,Singh,R.R and singh,R.K., Distribution and utilisation of cooperative
credit in district Lucknow(A Case study), indain credit review, vol.13,No.4,july 1976,
pp-403.411.
29
 Ramada’s (1978)15 had studied on the demand for and the productivity
of the provision of farm credit in the Pondicherry region., to examine the impact
of banks credit on productivity and output of selective crops in Pondicherry
region. Finally this study point out farm credit had a positive and significant
impact on the productivity of the small and the medium farms in study area.
Raju (1978)16 in his study “Changes in Credit Use on Small Farms in West
Godavari District”, examined the level and changes in the use of credit by the
small farmers adopting new farm technology and by non-adopters in West
Godavari district of Andhra Pradesh state during the years 1967-68 and 1970-
71. He used stratified multi-stage random sampling methods and selecting of
400 farmers from each year, the number of small farmers was 177 in 1967-68
and 170 in 1970-71. The rate of adoption of new technology by the small
farmers increased from 1967- 68 to 1970-71 and the small farmers who
adopted new technology were economically better off as compared to the non-
adopters. However, before advocating the adoption of the new technology, the
provision of irrigation, fertilizers, and improved seeds, timely and adequate
availability of credit has assured particularly for the small farmers.
Srivastava (1978)17 in his study on “Estimation of credit for agriculture”,
attempted to study the impact of farm credit with different level of parameter.
The Study was conducted in south Godavari district of Andhra Pradesh. which
was based on Primary data. The study had disclosed a high positive marginal
productivity of capital among all the groups of farmers who had utilised a less
than optimum level of credit. The production of crops and the net profit had
increased with every successive additional unit of credit.

15
Ramadas,M, (1978) demand for and the productivity of the provision of farm credit
in the Pondicherry region- An Economic appraisal, 1978,pp-112-116
16
Raju, V.T. (1978), “Changes in Credit Use on Small Farms in West Godavari District”,
Indian Journal of Agricultural Economics, Vol. XXXIII (4), p. 143.
17
Srivastava (1978) on Estimation of credit for agriculture, financing agriculture. Vol.4
No.1978, pp-18-21
30
 Venkat Reddy (1980)18 worked on “Commercial Banks and Agricultural
Finance: A case study of Anantpur District (Andhra Pradesh)” and analysed the
purpose wise lending pattern of commercial banks in Andhra Pradesh. He
pointed out that, about 81 percent of the crop loans were borrowed to the large
and medium farmers, small and large farmers shared 60 percent of land
development to small and marginal farmers, 76 percent of minor irrigation
loans to large and medium farmers and about 86 percent of the dairy loans. He
suggested, the relaxation of security norms to enable farmers to reap the
benefits of incremental income from different schemes.
Fahimuddin (1983)19 in his study “Indebtedness among Tribals: A Study”.
To examined the indebtedness in tribal community of Umru Kalan village of
Khatima development block of Nainital district of Uttar Pradesh. Total 50
persons has interviewed personally by adopting stratified sampling method
during the year 1981-82. The position of the landless agricultural labourers and
marginal and small farmers was very dismal as up to 66.67 percent of their
households are under debt. Average amount of debt per household for landless
labourers, marginal, small, medium and big farmers have found to the extent
of Rs. 371.43, Rs. 666.37, Rs. 820.80, Rs. 1,525 and Rs. 4,377.78 respectively.
The share of non-financial institutions in the total credit was 17.1 per 17.1
percent, while financial institutions were contributing 82.9 percent to the total
credit. Despite the success of financial institutions in tribal credit market, the
requirements of the masses of the community have still met with the non-
financial institutions.

18
Venkat Reddy, C., 1980, Commercial Banks and Agricultural Finance: A case study of
Anantpur District (Andhra Pradesh). Financing Agriculture, 12(3) 28:34.
19 Fahimuddin (1983), “Indebtedness among Tribals: A Study”, Kurukshetra, Vol. XXXI
(22), pp. 15-18.

31
 Sharma et al. (1983)20 in a study on “Credit Studies of Agra District Small
Farmers of Different Caste Communities,” analysed the credit studies of the
small farmers of different caste communities. The small farmers take loan from
both institutional and non-institutional agencies. Although institutional credit
is increasing up until now non-institutional credit still dominates. All the caste
communities use this credit for farming besides the domestic needs, although
the bulk of it have utilized for farming. The repayment of loan is more in
institutional credit organization by the general caste and non-institutional by
the lower caste communities.
Balishter and Naresh (1984)21 in a study on “A Study on Indebtedness in
Agriculture: A Case Study of Bichpuri Development Block Agra,” examined the
coverage of indebtedness among farming households and share of different
financial agencies in total credit. Two villages of Agra district of Uttar Pradesh
has chosen for the study over the period 1981-82. A sample of 33 farmers
consisting of 13 small, 11 medium and 9 large farmers selected randomly and
data regarding indebtedness have collected through personal interviews for the
said period. The study revealed that, in all about 91 percent of the farming
households were under debt. The proportion of households under debt was
the highest in the case of small farmers and the lowest in the case of large
farmers. About 80 percent of the total debt has owed to the institutional
sources and the remaining 20 percent to the non-institutional sources.
Institutional agencies charged rate of interest ranging from 10 to 20 percent,
whereas non-institutional agencies charged exorbitant rate of interest ranging
from 20 to 40 percent on agricultural credit. The study also brought out that

20
Sharma, A.K.; Sharma, P.K.; and Singh, H.P. (1983), “Credit Studies of Agra District
Small Farmers of Different Caste Communities”, Indian Cooperative Review, Vol. XX
(1), pp. 126-131.
21
Balishter; and Naresh, R. (1984), “A Study on Indebtedness in Agriculture: A Case
Study of Bichpuri Development Block, Agra”, Indian Co-operative Review, Vol. XXI (3),
pp. 296-303.

32
72 percent of the total debt have utilized for productive purposes and 28
percent for non-productive purposes. The extent of utilization of debt for non-
productive purpose was significantly higher in the case of small farmers as
compared to the medium and large farmers.
Agricultural Credit Review committee-(1986)22 constituted by R.B.I in
1986, to make a comprehensive review of the agricultural credit system in the
country. The committee made fundamental review of the credit-institutions viz;
Commercial banks, Regional Rural Banks, and the Co-operative banking system,
including the Land Development Banks.
MK Mitra and other (1986)23 studied “Rural Indebtedness: Concept,
Correlates and Consequences a Study of Four Tribal Villages in the North
Lakhimpur Subdivision, Assam”. Propose of an empirical study was to measure
indebtedness, identify its correlates and to assess the consequences of
indebtedness on the productive and distributive performance on the rural
economy. For this study, they have collected primary data from four tribal
villages of North Lakhimpur Subdivision of Lakhimpur district, Assam. The
selection of villages has made purposively. In these researches, select 101
households. Finally they concluded that rural indebtedness is resonant with the
overtones of unproductive usage, usurious ensnaring and deplorable condition
of the poor farmers and agricultural labourers.
Peter J. Barry and Paul N. Ellinger (1989)24 in a paper on “Credit Scoring,
Loan Pricing, and Farm Business Performance,” to identified and evaluate the
linkages over time between business performance and financing terms in a
modeling approach that androgenizes farm investment decisions, credit
evaluation, and loan pricing based on the credit scoring procedures of

22
RBI, Agricultural Credit Review Committee,1986
23 MK Mitra and DC Roy and SK Mishra, Online at http://mpra.ub.uni
muenchen.de/1824/ MPRA Paper No. 1824, posted 17. February 2007
24
Peter J. Barry and Paul N. Ellinger (1989) Western Journal of Agricultural Economics,
July1989
33
commercial lenders. Concluding Comments of the paper was to portray a firm's
financial performance over time in a fashion that indigenizes farm investment
decisions, credit evaluation, and loan pricing based on the credit scoring
procedures of agricultural lenders.
Bhat (1991)25 studied on “Borrowing and utilization pattern of crop
production Credit in Karnataka: A Case Study, Prajnan. He found that, the
growth of per hectare short-term credit absorption has mainly attributed to
fertilizer consumption (37.7 percent) and term agricultural credit (27.82
percent). Whereas bank branches expansion and deposits found to contribute
negatively to the growth of short-term agricultural credit. He further showed
that the contribution of commercial crops variable was insignificant for farmers
used to obtain credit from indirect sources.
Verashakerappa (1993)26 in his article “priority sector lending – A case
study” examined the structure and pattern of distribution of institutional credit
across different social groups in Karnataka examined the causes of over dues.
He was found that, in Karnataka the expansion of Institutional finance has
mainly helped the larger farmers and argued in favours’ of a re-examination of
the credit delivery system to prevent the rich from cornering the benefits that
meant for the poor.
Gupta (1994)27 in his study “Possibilities of Agricultural Development
through Co-operative Finance” in Chhattisgarh, to examine the possible impact
of cooperative finance in western Maharashtra. Relevant data was taken from
simple farmers in study area. The study point out the use of short-term loan
was decreasing as size of holding increased, whereas medium term loan had a

25 Bhat (1991) Borrowing and utilization pattern of crop production Credit in

Karnataka: A Case Study, Prajnan, Vol.16, No.1, pp77-83.
26
Verashekarappa “Priority sector lending-A case study” Southern Economy. Mar-
1993
27
Gupta, S.P. (1994), “Possibilities of Agriculture Development through Cooperative
Finance: An Analytical Study”, Financing Agriculture, July-Sept., p. 8-10.
34
positive relation. The utilisation of short-term and medium-term loan was
observed to be 57.15 and 42.85 percent respectively.
Kojo Spio and Jan A. Grunewald (1997)28 in his study “Rural Financial
Markets: An Overview”. Attention is given to the role of financial markets in the
development process, approaches to rural finance in developing countries, and
formal and informal financial markets. He found that in the informal sector,
private individuals provide credit largely out of their own equity. Among them
Commercial moneylending by farmers, traders, pawnbrokers, salaried
employees or professional moneylenders, friends, relatives, and neighbors are
the major.
Udayakumar and Gabriel Simon Thattil (2001)29 in his study “Agricultural
finance and total credit requirements of farmers - a study based on Kisan credit
cards” examined the status of Kisan credit card business in India as well as in
the State of Kerala. In the background of the current Kisan credit card scenario,
a micro level study presenting the utilization pattern of credit available under
the scheme by a group of Kisan credit card holders in Trivandrum district was
undertaken. He was found that, the utilization of credit was a major factor that
threatens the successful growth of Kisan credit card scheme.
Kaur et al. (2002)30 in has study “Agricultural Credit and Participation of
Various Credit Agencies in Punjab State”. To examine the role of various sources
of agricultural credit, the primary data was collected from 100 farmers of four
villages in two selected development blocks in Sangrur district of Punjab state.
The study discovered, that the small farmers were leading in acquire per

28
Kojo Spio and Jan A. Groenewald, Rural Financial Markets: An Overview, Agrekon,
Vol 36, No 2 (June 1997), pp-121-138
29
M. Udayakumar and Gabriel Simon Thattil, “Agricultural Finance and Total Credit
Requirements of Farmers- A study based on kisan credit cards”, Indian Cooperative
Review, Vol.39, no.2 (2001), pp.89-95.
30 Kaur, H.; Toor, M.S.; and Sain, I. (2002), “Agricultural Credit and Participation of
Various Credit Agencies in Punjab State”, Indian Journal of Agricultural Economics,
Vol.57 (3), pp. 576-77.

35
hectare credit (Rs. 98,404), followed by the medium (Rs.39, 006) and large
(Rs.23, 388) farmers. As a percentage contribution from institutional sources,
the medium farmers were leading with a share of 48.99 percent, followed by
the small (45.97 percent) and large (42.06 percent) farmers. In the case of non-
institutional sources, the large farmers accounted for 57.94 percent, followed
by the small (54.03 percent) and medium (51.11 percent) farmers. The study
also revealed that, 19.86 percent of institutional loans and 13.22 percent of
non-institutional loans has diverted from specific purpose to other uses.
Gautam Hazarika and Jeffrey AI wang (2003)31 studied on “Access to
credit, plot size and cost inefficiency among smallholder tobacco cultivators in
Malawi”, examined the effect of access to credit from formal sources, and
tobacco plot size, on cost inefficiency among Malawian smallholder tobacco
cultivators. A total of 404 rural households in 45 villages in five districts of
Malawi were surveyed for this research. They found that, no evidence of a
positive relation between access to credit from formal sources and efficiency in
tobacco farming. The paper also finds that tobacco cultivation is less cost
inefficient on larger plots. This may be taken as indicative of an equity-efficiency
trade-off in the Malawian tobacco sector.
J. S. Sogo-Temi and S. O. Olubiyo (2004)32 studied on “The Role of
Agricultural Credit in the Development of Agricultural Sector: The Nigerian
Case,” examined the growth of agricultural production vis-a-vis the huge
amount of credit in the period 1970 - 2001. The results generally verified that
one of the most important determinants of growth in agricultural output is
availability of productive credit in required quantities. However, given the

31
Gautam Hazarika and Jeffrey AI wang(2003) “Access to credit, plot size and cost
inefficiency among smallholder tobacco cultivators in Malawi”, Agricultural Economics
29 (2003) 99-109, Available online at www.sciencedirect.com
32
J. S. Sogo-Temi and S. O. Olubiyo(2004) , The Role Of Agricultural Credit In The
Development Of Agricultural Sector:The Nigerian Case, African Review of Money
Finance and Banking, (2004), pp. 101-116 Published by: Giordano Dell-Amore
Foundation Stable URL: http://www.jstor.org/stable/23026295.
36
short-term nature of credit provision of the banking system, it is opined that
greater attention in policy strategies and resource allocation should be
accorded the sector.
Singh et al. (2004)33 in a Conducted study “Profiling Socio-economic
Status of Small Holders in Punjab,” examined the extent and sources of farm
loans. The total sample consisted of 120 farmers in two development blocks of
Sangrur district of Punjab state. The study discovered that the average amount
borrowed was Rs. 189750, Rs. 252162, Rs. 317632, and Rs. 396200 for the
marginal, small, medium, and large farmers respectively. The overall results
brought out that there is a high level of credit dominance among the Punjab
farmers. Easy availability of credit and ignorance of its long-term negative
consequences among the farmers can be attributing to the high level of credit.
The study also discovered that the average amount of outstanding loans
increased with the increase in farm-size, whereas on a per acre basis there was
an inverse relationship. Majority of the respondents, i.e., 42.50 percent could
not repay their loans because of the high cost of agricultural inputs, while
insufficient income generation, high rate of interest, uneconomical size of
landholdings were the other reasons responsible for the non-repayment of
loans in time.
Jonathan Conning (June 2005)34 in this study on “Rural Financial
Markets in Developing Countries.” examined portions of the vast literature on
rural financial markets and household behavior in the face of risk and
uncertainty. This paper mainly on Salient Characteristics of Rural Financial
Markets, Models of Rural Financial Markets and Rural financial intermediaries.

33
Singh, G.; Gill, S.S.; and Peshin, R. (2004), “Profiling Socio-economic Status of Small
Holders in Punjab”, Journal of Agricultural Development and Policy, Vol. 16 (1), pp. 69-
78.
34
Jonathan Conning(June 2005) Rural Financial Markets in Developing Countries,
Economic Growth Center Yale UNIVERSITY P.O. Box 208629 New Haven, CT 06520
8269 CENTER Discussion Paper No. 914
http://www.econ.yale.edu/~egcenter/research.htm
37
He observed Fragmented or absent markets, Government Interventions is main
features of rural financial market in developing countries.
Biswa Swarup Misra (2006)35 in his paper on “Performance of Primary
Cooperatives in India: An Empirical Analysis” attempted find out to enquire into
the factors affecting financial health of cooperatives, which reflected through
their recovery performance. He fund that the PACS have drifted from some of
the core principles of cooperation. As membership size has grown over the
years in case of the PACS, their recovery has taken a beating because peer
pressure, which ensures recovery, has gradually weakened so that he suggested
that government should allow the cooperatives to evolve in a natural manner
rather than through initial official encouragement and subsequent
intervention. At the same time, there is a need to relook into the issue of
optimal member size of the cooperatives in the interest of their viability.
Kaur and Singh (2006)36 in his study on “Indebtedness among Farmers”,
in Punjab, examined the extent and nature of indebtedness among the small
and marginal farmers in Bathinda district of Punjab state. The total sample
consisting of 140 farmers (80 small and 60 marginal farmers) has selected for
the study. The study concluded that, 95 percent of the small and marginal
farming households are under debt. The study also revealed that, an average
small and marginal farming household, followed by the purchase of animals
(22.57 percent), spent 44.74 percent of the total debt on agriculture and
purchase of machinery. In the case of source of credit, institutional agencies
are providing 60.98 percent of the total debt, 62.32 percent, and 58.24 percent
for the small and marginal farmers respectively. The institutional agencies are

35 Biswa Swarup Misra(2006) Performance of Primary Cooperatives in India: An

Empirical Analysis, Online at http://mpra.ub.uni-muenchen.de/21890/ MPRA Paper
No. 21890 posted 7 April 2010 17:35 UTC
36 Kaur, S.; and Singh, G. (2006) “Indebtedness among Farmers”, in panjab, Balbir
Singh (ed.), Punjab Economy: Challenges and Strategies, Twenty First Century
Publications, Patiala, pp. 279-289.
38
having upper hand in providing loans to the small and marginal farming
households.
P Satish (2006)37 in his paper on “Institutional Credit, Indebtedness and
Suicides in Punjab”, examined the aspects relating to institutional credit,
Indebtedness and Suicides in Punjab and also analyzed the nature of
relationships between them. These three aspects have a causal relationship and
assign the direct blame for farmers’ suicides to the lack of institutional credit.
This study was conducted in sangrur district in 2002. He found that, since the
nationalization of banks and the green revolution, institutional credit for
agriculture has grown in Punjab. However, the growth had not been uniform
and in line with the demand for such credit. Indebtedness has also increased in
the state, but a large part of the debt has been for non-productive purposes.
The incidence of suicides in Punjab has not been higher than the all India
average and studies reveal that while indebtedness is indeed one of the major
causes of suicides, it is neither the only cause nor the main one. There is thus
no direct causal relationship between institutional credit, indebtedness and
suicides in rural Punjab.
Abhiman Das and Saibal Ghosh (2006)38 in his paper “Size, Non-
performing Loan, Capital and Productivity Change: Evidence from Indian State-
owned Banks,” attempted to examine the portfolio risk and capital and its
interrelationship with operating efficiency. He observed that, the capital, risk
and productivity change to interweaved, with each reinforcing and to a degree,
complementing the other. He resulted suggest that inadequately capitalized
banks have lower productivity and are subject to a higher degree of regulatory
pressure than adequately capitalized ones. Finally, the results loan support,

37
P Satish(2006 ) Economic and Political Weekly June 30, 2006
38
Abhiman DAS and Saibal GHOSH (2006) Size, Non-performing Loan, Capital and
Productivity Change: Evidence from Indian State-owned Banks Online at
http://mpra.ub.uni-muenchen.de/17396/ MPRA Paper No. 17396 posted 19.
September 2009 15:25 UTC
39
especially for medium-sized banks, to the belief that lowering Government
ownership tends to improve productivity.
A.R. Khan, S.K. Tewari and A.N. Shukla (2007)39 in his study “Effect of
Liberalization on Institutional Agricultural Credit Flow and Its Relationship with
Average Cost of Cultivation in Indian Agriculture.” examined the nature and
extent of inter-state disparities in per hectare flow of short-term institutional
credit to agriculture, and its relationship with average cost of cultivation across
states. He covered all the six regions of the country, namely, northern, north-
eastern, eastern, central, western and southern and pertains to the period
1980-81 to 2001-02, viewed as pre-liberalization period up to 1990- 91 and
post-liberalization period starting from 1991-92. They observed that, the inter-
state disparities in the flow of short-term institutional credit to agriculture
decreased across the states after the post-liberalization period. Its results
indicate that in most of the states in northern region, the average amount of
short-term credit as a percentage of average cost of cultivation varied between
1 percent and 3 percent (except in Punjab) during 1980-81 to 1990-91 (pre-
liberalization period); in Punjab it was between 3 and 5 percent. During 1991-
92 to 2001-02 (post-liberalization period), the coverage of cost of cultivation by
short-term institutional credit increased in all the northern states, but more
noticeably in Punjab and Himachal Pradesh, where the per hectare credit flow
covered about one fourth of the cost of cultivation in 2001-02. In Haryana, the
coverage rose to 15 percent in 2001-02.
R Ramakumar, Pallavi Chavan (2007)40 in a paper on “Revival of
Agricultural Credit in the 2000s: An Explanation” examines the credit to
agriculture provided by the commercial banks, including regional rural banks.

39
A.R. Khan, S.K. Tewari and A.N. Shukla (2007) ,“Effect of Liberalization on
Institutional Agricultural Credit Flow and Its Relationship with Average Cost of
Cultivation in Indian Agriculture, Agricultural Economics Research Review Vol. 20 July-
December 2007 pp 227-234
40
R Ramakumar, Pallavi Chavan (2007) “Revival of Agricultural Credit in the 2000s: An
Explanation, Economic & Political Weekly december 29, 2007
40
In this paper, its plan was to analyses the claim that slowdown in the supply of
agricultural credit has been reversed after 2004. Secondary data on banking
from different publications of the Reserve Bank of India (RBI) have been used
for this purpose. This paper point out the increase in the supply of credit to
agriculture has been claimed to be one of the most significant achievements in
the agricultural sector after the formation of the new government in 2004.
There is little evidence to argue that the major beneficiaries of the revival in
agricultural credit in the recent years have been the small and marginal farmers.
Ramesh Golait (2007)41 studied “Current Issues in Agriculture Credit in
India: An Assessment”. To analyse the issues in agricultural credit in India. The
analysis reveals that, the credit delivery to the agriculture sector continues to
be inadequate. It appears that the banking system is still hesitant on various
grounds to spread credit to small and marginal farmers. He observed that, the
co-operative credit structure needs revamping to improve the efficiency of the
credit delivery system in rural areas. The competition and search for higher
returns has made commercial banks to explore profitable avenues and activities
for lending such as financing of contract farming, extending credit to the value
chain, financing traders, and other intermediaries, which needs to be
encouraged.
Roehlano Briones (2007)42 in a paper on “Do Small Farmers Borrow Less
when the Lending rate Increases? The Case of Rice Farming in the Philippines”
he conducted an econometric test of this conjecture using data from a survey
of small rice farmers from the Philippines. Alternative regression techniques
tend to reject the conjecture; in particular, a regression that controls for
selection effects shows a unitary elastic response of formal borrowing to the

41
Ramesh Golait (Summer 2007) Current Issues in Agriculture Credit in India: An
Assessmen, Reserve Bank of India Occasional Papers,Vol. 28, No. 1
42
Roehlano Briones (2007) Do Small Farmers Borrow Less when the Lending rate
Increases? The Case of Rice Farming in the Philippines”, online at http://mpra.ub.uni-
muenchen.de/6044/ MPRA Paper No. 6044 posted 2. December 2007 06:37 UTC
41
lending rate. This study informs the discussion by producing quantitative
evidence regarding this conjecture. Data have obtained from a survey of small
rice farmers, covering bank borrowers, informal borrowers, and non-
borrowers. Regression analysis points to a negative and significant effect of the
effective lending rate on the demand for credit. Upon correcting for selection
effects, the interest rate elasticity has found to be close to unity.
R.S. Sidhu, and other (2008)43 in a study on “Dynamics of Institutional
Agricultural Credit and Growth in Punjab: Contribution and Demand-Supply
Gap” examined the contribution of institutional credit towards agricultural
growth and demand for production credit in relation to its institutional supply.
Study point out that, supply of production credit doubled and that of
investment credit increased by about 80 percent during the period 2001-02 to
2003-04. It took more than 15 years to double from 1984-85 to 2000-01. The
relationship between use of variable inputs and production credit
disbursement has been found highly significant. A similar relationship has
prevailed between private capital formation and investment credit. The results
have further exhibited significant and positive impact of capital investments on
productivity with elasticity of 1.02. Higher use of inputs was helped by favorable
input-output pricing policy along with easy and cheap short-term credit
availability in the state. Private capital formation has also helped in increasing
the use of variable inputs in the crop sector. The contribution of institutional
credit in promoting use of modern production inputs and private capital
investments has been found to be significantly positive.
Waqar Akram and Zakir Hussain (2008)44 in a paper on “Agricultural
Credit Constraints and Borrowing Behaviour of Farmers in Rural Punjab” for the

43
R.S. Sidhu, Kamal Vatta and Arjinder Kaur (2008) “Dynamics of Institutional Agricultural
Credit and Growth in Punjab: Contribution and Demand-Supply Gap” Agricultural Economics
Research Review Vol. 21 (Conference Number) 2008 pp 407-414
44
Waqar Akram and Zakir Hussain(2008) Agricultural credit constraints and borrowing
behavior of farmers in rural Punjab, European Journal of Scientific Research ISSN 1450-216X
Vol.23 No.2 (2008), pp.294-304, http://www.eurojournals.com/ejsr.htm

42
purpose used the two data set for the analysis. The data from Pakistan Rural
Household Survey (PRHS) 2001 comprising 2642 households from 16 districts
of Pakistan has taken to identify the credit constraints. In addition, household
and farm survey of 160 farm households has conducted in summer 2007 from
Sargodha region, Punjab. The objective of this paper was to identify constraints
and suggest remedial measures to make efficient use of agricultural credit
schemes.
Sidhu. R. S and other (2008)45 studied on “Dynamics of Institutional
Agricultural Credit and Growth in Punjab: Contribution and Demand-Supply
Gap” to estimate demand-supply situation of institutional agricultural credit
primary and secondary data was used as well as its contribution to agricultural
growth. While the data on use of intermediate production inputs has collected
from a randomly selected sample of 160 farmers, representing all the three
agro-climatic zones and all farm-size groups in the state. They found that, the
relationship between use of variable inputs and production credit
disbursement has found highly significant. A similar relationship has prevailed
between private capital formation and investment credit.
Pratibha B.Desai and S.N.Salawade (2008)46 in a study on “Rural
Indebtedness”: ‘With Special reference to Sugarcane Growers’ tried to find the
major causes for growing indebtedness of sugarcane growers. In addition, to
understand extent, sources and purposes of indebtedness of sugarcane
growers. The study was conducted in a village of Chinchali, Belgaum District of
Karnataka State. They found that a steady decline in infrastructure investment,
droughts, floods and insects infection have contributed to the growth of rural

45
Sidhu. R.S, Kamal Vatta and Arjinder Kaur (2008) , “Dynamics of Institutional
Agricultural Credit and Growth in Punjab: Contribution and Demand-Supply Gap”
Agricultural Economics Research Review Vol. 21 (Conference Number) 2008 pp 407-
414
46
Pratibha B.Desai and S.N.Salawade(2008) “Rural Indebtedness”: ‘With Special
reference to Sugarcane Growers’, Journal of Global Economy, Volume 4 No 1, January-
March, 2008
43
social misery. They also observed that, the cost of cultivation has been raised
at one side and other side Interest rates of moneylenders range from 30 – 50
percent a year and go up to 60 percent for short term loans. At the same time
Crop failure due to flood and fall in the prices of sugar are major factors for
raising the indebtedness of sugarcane growers in the last three years in village
Chinchali It is significant that the dominant cause for taking loans was found to
be for productive purposes.
Sukhpal Singh, Manjeet Kaur and H.S. Kingra (2009)47 studied on
“Inadequacies of Institutional Agricultural Credit System in Punjab State,” to
examine the inadequacies of institutional credit systems by estimating the gap
between the productive needs of farm households and institutional lending;
Problems faced by the farmers in obtaining institutional loan. Three-stage
random sampling technique has used for the selection of sample households.
This study was based on a random sample of 600 farm households covering 11
districts in Punjab, comprising 107 marginal, 150 small, 53 semi-mediums, 87
medium and 103 large farmers and pertains to the year 2005-06. It was
observed that, the total loan per farmer household in the state, as on 31 March
2006, was Rs 178934, comprising Rs 110828 (61.9 percent) from institutional
sources and Rs 68106 (38.1 percent) from non-institutional sources. Among
institutional sources, the commercial banks provided about 72 percent and
cooperatives provided about 28 percent of the loan. The farmers faced
numerous problems in availing institutional credit. About 59 percent farmers
reported the complicated and time-consuming procedure as the main problem.
The high rate of interest was the common grudge of all the farm-size groups
and was reported by about 15 percent farmers.

47
Sukhpal Singh, Manjeet Kaur and H.S. Kingra(2009) Inadequacies of Institutional
Agricultural Credit System in Punjab State, Agricultural Economics Research Review
Vol. 22 July-December 2009 pp 309-318
44
 M. I. Subhani and Sana Awan (2010)48 studied the “Impact to find out of
Microfinance on the Performance of an Agriculture Industry in Pakistan,” they
used five years secondary Data comprised on years 2003-2008 which was
collected from the Sindh Statistical Bureau based on GDP contribution on
agricultural sector in accordance to disbursed, recovered and outstanding
amount. Research problem is to find out whether Microfinance has positive
impact on agriculture industry growth or not, what role has played by
microfinance in under developing countries like Pakistan, are people aware of
it. He found that, there is no as such impact of microfinance on agriculture
industry performance in a country like Pakistan.
Anjani Kumara, and others (2010)49 studied on “Institutional Credit to
Agriculture Sector in India: Status, Performance and Determinants” The study
is based on the secondary data compiled from diverse sources. The
performance of agricultural credit system measuring through the share of
agricultural credit in agricultural GDP (Gross Domestic Product), overall GDP
and the credit per unit of GCA have examined to assess the overall performance
of institutional agricultural credit flow. Tobit model has applied to identify the
factors that determine the quantum of credit borrowed from the institutional
sources. He found that, the institutional credit flow to the agriculture has been
increasing for the past four decades.
S. Gandhimathi and S. Vanitha (2010)50 in a paper on “Determinants of
Borrowing Behavior of Farmers – A Comparative Study of Commercial and Co-

48
M. I. Subhani and Sana Awan(2010) Impact of Microfinance on the Performance of
an Agriculture Industry in Pakistan, South Asian Journal of Management Sciences Vol.
4, No. 2, (Fall 2010) pp. 23 - 28
49
Anjani Kumara, K. M. Singhband Shradhajali Sinha (2010) ,“Institutional Credit to
Agriculture Sector in India: Status, Performance and Determinants”, Agricultural
Economics Research Review Vol. 23 July-December 2010 pp. 253-264
50
S. Gandhimathi and S. Vanitha(2010) “Determinants of Borrowing Behaviour of
Farmers – A Comparative Study of Commercial and Co-operative Banks” Agricultural
Economics Research Review Vol. 23 January-June 2010 pp. 157-164
45
operative Banks” to study the distribution of institutional credit across different
categories of farmers and to assess the coverage and quantum of credit. The
data for the study has collected from primary sources. A multi-stage random
sampling procedure has followed for selecting the sample of borrower farmers.
The study resulted that, all the 100 farmer respondents were the borrowers of
crop loan, whereas 18 farmers borrowed both crop loan and investment loan.
The total crop loan availed by the borrowers amounted to Rs 17.03 lakh from
commercial banks and 21.01 lakh from co-operative banks.
Abdul Khaleque (2010)51 in his paper on “Diversion of loan use: who
diverts and why?” He was used 2973 loan profile records of 2810 poor
households who taken loans from different quasi-formal sources of which
about 50 percent of the loan taken have supplied by the Ultra-poor oriented
program designed by PKSF. He used three econometric models to identify the
plausible determinants of diversion of loan use from the proposed IGA to other
purposes. These are Tobit, Probit and Logit models. Finally he found that,
Deduction the relaxation of credit constraints for promoting microenterprise
facilitates the object largely, but relaxation of microenterprise oriented credit
constraints often relaxes the consumption constraints.
Saima Ayaz and Zakir Hussain (2011)52 in his study “Impact of
Institutional Credit on Production Efficiency of Farming Sector a Case Study of
District Faisalabad.” He highlighted the level of production efficiency of the
farming sector in Faisalabad district in the Punjab province of Pakistan. The
purpose of his study was to develop approaches is answering the research
questions; How much efficient were the farmers getting agricultural credit than
the farmers not obtaining farming credit? For this purpose collected primary

51
Abdul Khaleque (2010)Online at http://mpra.ub.uni muenchen.de/26930/
MPRA Paper No. 26930 posted 23. November 2010 20:17 UTC
52
Saima Ayaz And Zakir Hussain(2011), Impact Of Institutional Credit On Production
Efficiency Of Farming Sector A Case Study Of District Faisalabad, Pakistan Economic
and Social Review, Volume 49, No. 2 (Winter 2011), pp. 149-162

46
data from a sample data of 300 rural farmers from two tehsils of Faisalabad
district. This paper remarked Farming experience, education, and access to
farming credit, herd size and number of cultivation practices showed
constructive and significant effect on the farmer’s technical efficiency.
Satyasai K.J.S (2012)53 worked on “Access to Rural Credit and Input Use:
An Empirical Study,” to examine the relative access of different categories of
farm households to formal credit and its impact on fertiliser-use. For this
purpose collected the data through Input Surveys conducted by Agricultural
Census Division, Ministry of Agriculture, and Government of India. The
analytical framework of this paper is around measuring differential access to
credit across farm-size classes and impact of credit on input use on farms. He
found that, the Credit has played an important role in farm production over
time. Measures towards institutionalisation of rural credit have paid off in
terms of diminishing share of informal sources in total credit availed by the
farmers.
Diwas Raj Bista, and others (2012)54 studied “Progress and Performance
of Kisan Credit Card Scheme with a Case Study of Bihar,” to assessing the
progress and impact of KCC scheme on farm economy; to analyzing the
constraints being faced by KCC beneficiary and non-beneficiary farmers; and to
identifying the factors that influence the adoption of KCC scheme. They had
used Primary and secondary data in there paper. They found that, the share of
KCC in the total amount of loan disbursed to agriculture and allied sector
showed a steady increase during the initial few years of its launch. The Eastern
and North- Eastern regions continue to be underperformers with respect to KCC

53
Satyasai K.J.S (2012), Access to Rural Credit and Input Use: An Empirical Study,
Agricultural Economics Research Review Vol. 25 (Conference Number) 2012 pp. 461-
471
54 Diwas Raj Bista, Pramod Kumar and V.C. Mathur (2012), “Progress and
Performance of Kisan Credit Card Scheme with a Case Study of Bihar” Agricultural
Economics Research Review
Vol. 25(No.1) January-June 2012 pp. 125-135.
47
scheme. The flow of credit through KCC in the state of Bihar has not been
impressive
K.J.S. Satyasai (2012)55 in his study on “Access to Rural Credit and Input
Use: An Empirical Study” examined the relative access of different categories of
farm households to formal credit and its impact on fertilizer-use. He collected
the data through Input Surveys conducted by Agricultural Census Division,
Ministry of Agriculture, and Government of India. The study concluded that, out
those inequalities in the distribution of number of loans vis-à-vis operational
holdings have increased over time. Credit levels, irrigation availability, share of
short-term credit and farm-size could explain fertilizer consumption across
states. Higher credit levels are associated with higher fertilizer consumption
levels, as revealed by cross-section data across the states and farm-size classes
during 2006-07. Across states, marginal farmers, on an average, could increase
fertilizer-use by 0.381 kg with every `100 of credit they received. The response
was stronger on large farmers. The elasticity of fertilizer-use w.r.t. credit has
been found between 0.20 and 0.24 on marginal and small farms, and between
0.52 and 0.54 on medium and large farms.
A. Amarender Reddy (2012)56 in has paper on “Structure of
Indebtedness of Households in Semi-Arid Tropics of India raised equation on
Who gets cheaper loans and who gets costly loans? And how are different
borrowers and lenders matched to each other. The data used in has paper
were obtained from a larger research project entitled “Village Dynamic Studies
in South Asia (VDSA), in which ICRISAT research team collected a range of data
from households of 18 selected villages from SAT India for the year 2009. He
found that, in the ICRISAT, sample data for the year 2009, out of 857

55
K.J.S. Satyasai (2012) “Access to Rural Credit and Input Use: An Empirical Study”
Agricultural Economics Research Review Vol. 25 (Conference Number) 2012 pp. 461-
471
56
A. Amarender Reddy (2012) “Structure of Indebtedness of Households in Semi-Arid
Tropics of India” Agricultural Economics Research Review Vol. 25 (Conference
Number) 2012 pp. 473-483
48
households, about 79 percent were borrowers, and 21 percent were non-
borrowers from all sources. It was important to see that about 51 percent of
households had not borrowed from the formal sector and only 36 percent
households had not borrowed from the informal sources. It indicated that still
the majority of households borrow from the informal sources compared to
formal sources in SAT India. About 46 percent of total households had taken
multiple loans 13 percent from formal sources and 26 percent from informal
sources and 7 percent from both formal and informal sources. Borrowings from
formal sources are for large amounts at a lower interest rate compared to from
informal borrowings. However, the majority of formal borrowings are skewed
towards large landholders, and upper caste households who can offer collateral
securities and benefit from crop loans, for which basic eligibility criteria for
getting loans is land. The borrowings from informal sources have been found
distributed across all class and caste groups uniformly as these are mostly inter-
personal borrowings with no collateral securities. About half of the borrowings
from friends and traders carry no interest rate, but for very small amounts and
for a shorter duration. However, on average informal sources have been found
charging three-times interest rates that of formal sources if we account for
product input- credit market linkages.
Arindam Laha (2013)57 in his Paper on “Technical Efficiency in
Agricultural Production and Access to Credit in West Bengal, India: A Stochastic
Frontier Approach,” examined the instrumental role of credit in ensuring
efficiency in the context of West Bengal agriculture by disaggregating the
analysis for two mutually exclusive groups: bank customers and non-bank
customers. Empirical analysis based on Stochastic Frontier Analysis confirms
that farming households having access to formal credit are, in general,

57
Arindam Laha (2013) Technical Efficiency in Agricultural Production and Access to
Credit in West Bengal, India: A Stochastic Frontier Approach”, International Journal of
Food and Agricultural Economics, ISSN 2147-8988, Vol. 1 No. 2 pp. 53-64.
49
practicing cultivation more efficiently by channelizing credit in the utilization of
agricultural inputs. He pointed out that, technical inefficiency of sample
holdings ranged between 5.53 and 98.93 percent with an average of 38.90
percent. This paper finally concluded that on access to credit plays a significant
role in input utilization and in achieving technical efficiency in agriculture.
Byaruhanga Ismael (2013)58 in his study “Credit Terms, Credit
Accessibility and Performance of Agricultural Cooperatives in Rwanda,”
examined the empirical relationship between credit terms, credit accessibility
and the performance of agricultural cooperatives in Rwanda. Drawn from the
literature, independent variables, credit terms and credit accessibility- were
formulate to link each research question together. A random sample of 196
active agricultural cooperatives was obtain from various districts in the
southern province. Correlation and regression models has used to test whether
the performance of agricultural cooperatives have affected by credit terms and
credit accessibility and if there is any relationship between the two. He was
found a positive and significant relationship between credit terms, credit
accessibility and the performance of agricultural cooperatives; the two
independent variables explain about 17.6 percent of the performance of
agricultural cooperatives. The study exposes that credit accessibility is the most
significant determinant of the performance of agricultural cooperatives.
Kuldip S. Chhikara and Anand S. Kodan (2013)59 in a Study on “Farmers'
Indebtedness in Haryana: A Study,” studied the status of indebtedness of farm
households in Haryana and the relationship between size of landholding and
farmers' indebtedness by informal source of credit. The study was based on
secondary data, which were collected from the Farmers Situation Assessment

58
BYARUHANGA Ismael 2013) Journal of Emerging Issues in Economics, Finance and
Banking (JEIEFB) An Online International Monthly Journal (ISSN: 2306-367X) Volume:1
No.6 June 2013
59
Kuldip S. Chhikara and Anand S. Kodan (2013) Farmers' Indebtedness in Haryana: A
Study, Journal of Rural Development, Vol. 32 No. (4) pp. 347-365 NIRD, Hyderabad.
50
Survey [2003], Indebtedness of Farmer Households Survey [2003], National
Crime Records Bureau [various issues], Census of India & Haryana [various
issues], Economic Census of Haryana [1998 & 2005], and Agriculture Statistics
at a Glance [2008]. It was observed that, the informal mechanism of credit
delivery is playing an important role for marginal and small farmers in meeting
their credit requirements in the State. Seventy-one percent loans to total loan
were used in productive activities in Haryana, while in case of India the same
ratio was 73.10 percent. Marriage and other ceremonies were the major
unproductive expenses in Haryana, which were higher as compared to
aggregate India and it is more in SC and BC community in the State. In addition,
maximum indebtedness was found to be ` 25289 on the 615-775 MPCE class
farm households in the State and the status of Scheduled Caste and Backward
Class farm households is not better, while on an average the status of farm
households belonging to other social group of farming community is better in
the State as compared to India as aggregate. The size of landholding is also
negatively associated with informal borrowing.
Kavita Agrawal & Jaiprakash Ahirwar(2014)60 In his Study on “Impact Of
Kisan Credit Card Scheme On Agricultural Income And Productivity Among
Farmers,” examined the impact of Kisan credit Card on agricultural income and
productivity of the sample farmers in a backward district i.e. Ashoknagar, of
Madhya Pradesh. Total sample size was 280. This study concluded that, a
positive relationship between credit under KCC and agricultural productivity.
Similar relationship was found with income of the sample farmers.
Suvarna S. Shinde, Dr. P. B. Patil (2014)61 in a study on “Role of State Bank
of India in Agricultural Finance (With Reference to Study of Agricultural

60
Kavita Agrawal & Jaiprakash Ahirwar(2014), Study Impact Of Kisan Credit Card
Scheme On Agricultural Income And Productivity Among Farmers, International
Journal of Research in Social Sciences , Volume 4, Issue 3 Downloaded From IP -
210.212.129.125 on dated 11-Nov-2014
61
Suvarna S. Shinde, Dr. P. B. Patil(2014), Role of State Bank of India in Agricultural
Finance (With Reference to Study of Agricultural Financing of Niphad (Nashik) Branch),
51
Financing of Niphad (Nashik) Branch) studied the schemes of Agriculture
finance for small and marginal farmers, implemented by S.B.I through its
Niphad Branch. The analysis and interpretation is related with State Bank of
India, Niphad .The scope of the study was limited to five years ranging from
2008- 2009 to 2012-2013. The study is entirely based on the data available in
the annual report, information available in internal manual, circulars and web
site of State Bank of India. Study concluded that, the Niphad branch is doing
well in the agricultural finance in general. It plays a vital role in the surrounding
area In view of proper utilization of agricultural loan provided by Branch, the
financial conditions of the farmers has improved remarkably. Study also
suggested that with the change in agricultural technology, the amount of
finance needed is also on the increase
Kavita Agrawal and Jaiprakash Ahirwar (2014)62 in their study “Impact of
Kisan Credit Card Scheme on Agricultural Income and Productivity among
Farmers” studied the impact of Kisan Credit Card Scheme on agricultural
income and productivity. This Study find out that, the total factor productivity
among farmers had increased from 1.38 in the pre-loan period to 1.64 in the
post-loan period. The average total factor productivity after availing the loan
increased by 0.26, which indicates 18.9 percent increase over the pre-loan
period. The category wise classification further shows that the highest mean
incremental total factor productivity from the loan based activity was recorded
among semi medium farmers (0.31), followed by large farmers (0.29), medium
farmers (0.23), small farmers (0.22) and the lowest among marginal farmers
(0.18). The percentage increase in TFP was highest among semi medium
farmers (22 percent), followed by large farmers (21.6 percent), medium farmers

Journal of Commerce & Management Thought, Vol. 5-3, 2014, pp.409-423, DOI :
10.5958/0976-478X.2014.00330.9
62
Kavita Agrawal and Jaiprakash Ahirwar(2014) “Impact of Kisan Credit Card Scheme
on Agricultural Income and Productivity among Farmers, International Journal of
Research in Social Sciences, Volume 4, Issue 3, ISSN: 2249-2496

52
(16.7 percent), small farmers (15.8 percent) and marginal farmers (14.4
percent). There is significant difference in the total factor productivity among
sample farmers between pre-loan and post-loan period.
Conclusion
In this chapter of literature review, a background of objectives and
hypotheses to be discussed in the subsequent chapters has been incorporated.
Moreover it can be observed from the above reviews that although many
studies had been conducted with regard to agricultural credit and loan, but
most of these studies had focused on one of the priority sector lending. Also
many studies had been undertaken on impact of credit on agriculture cropping
pattern, production, yield, farm income, cultivation cost, and standard of living,
Soci-economic impact by all commercial banks, cooperative banks and other
non-institutional in India as a many states. A number of issues have been raised
to carry out literature review. These issues are viability, concessional credit, and
curse or bless issues of credit, relevance of credit in new Economic Policy, new
technology, sources of credit, credit allocation, and interlink ages of credit with
factor and product market. Very few studies had been undertaken on
effectiveness of agricultural loans in Maharashtra or solapur district

53
 CHAPTER III
PROFILE OF AGRICULTURE
AND AGRICULTURAL
FINANCE IN SOLAPUR
DISTRICT

54
 CHAPTER III
PROFILE OF AGRICULTURE AND AGRICULTURAL FINANCE IN SOLAPUR
DISTRICT

3.0 Introduction
3.1 Climatic Condition
3.2 Land Use Pattern
3.3 Cropping Pattern
3.4 Production Pattern
3.5 Yield Rates of Mains Crops
3.6 Inputs Used In Agriculture
3.6.1 Irrigation
3.6.2 Seed Supply
3.6.3 Chemical Fertilizer Consumption
3.6.4 Agricultural Implements and Machinery
3.6.5 Electricity Consumption for Agriculture
3.7 Pattern of Land Holdings in Solapur
3.8 Population
3.9 Growth of Agriculture Finance in District
3.9.1 Bank Branches Expansion
3.9.2 Distribution of Bank Branches in Solapur
3.9.3 Growth in Advances by Various Banks
3.9.4 Priority Sector Lending
3.9.5 Agriculture Advance
3.10 Conclusion

55
 CHAPTER III
PROFILE OF AGRICULTURE AND AGRICULTURAL FINANCE IN SOLAPUR
DISTRICT

3.0 Introduction
This chapter bring out the salient features of the agriculture of Solapur
Districts. It mainly focus on geographical features, agronomy, population, and
agriculture financial sector of agriculture in Solapur District.
3.1 Climatic Condition
Solapur District comprises of an area of 15021 square kilometres, which
is 4.88% of the total area of the state. Of this, urban areas about for 414(2.76%)
square kilometres and rural areas for 14607(97.24%) square kilometres.1 The
soils in the District have classified into four main categories based on depth and
structure viz.2 (a) Very shallow soils with depth 7.5 cms. (b) Shallow soils
between 7.5 between 22.5 cms. (c) Medium deep soils from 22.5 between 90
cms. (d) Deep soils with depth more than 90 cms.
The soils from the Solapur District have grouped with reference to
tentative agro climatic zones of Maharashtra State based on climate,
vegetation, relief parent material. The major area in Solapur District comes
under scarcity zone, which is characterize by low average annual rainfall. The
major soil group observed in this District includes mostly brown to black
calcareous soils with varying depth and texture. The soils generally met with in
this zone are similar to scarcity zone, with the difference that the deep soils are
rather restricted in drainage. Two types of soils have observed, viz., deep,
brown-black clays with yellowish brown mottled colored sub-soil layer, and

1
Epitome of Agriculture in Maharashtra – Part II, (2003-04), District wise General
Statistical Information of Agriculture Development, p. 112.
2
Solapur District Socio Economic Survey, (2005-2006), p.104.

56
deep brown black clays with dirty white lime sub-soil.3 The chief rivers are the
Bhīma, Man and left bank feeders the Sina and Bhogawati in the District.4
Agriculture in the District is mainly dependent upon rainfall. In this
District, Mainstream cultivated area is under dry farming. There are no major
irrigation schemes. The rainfall, therefore, determines the pattern of crops,
rotation of crops and the productivity of the land in the District. Broadly,
Rainfall all over the District is uncertain and scanty with an annual average of
625 mm.5
3.2 Land Use Pattern
The availability of land and its proper use is important in
agriculture for raising production. The land use pattern have normally
influenced by some factors such as the nature of the soil, landscape, climatic
condition ,accessibility of irrigation facilities and high yield varieties of seeds.
The total geographical area of the District is 1487800 Ha. Geographical area in
Solapur has been classified according to different uses of land during 2000-03
to 2010-2013 which is presented in Table 3.1 Area under Forest represents all
actually forested area as the lands classed or administered as forest under any
legal enactment dealing with forest. In the year of 2010-13 the area under
forest was 35300 hectares (i.e. 2.37 percent) of the total geographical area.
Over a period of time the under forest was increased by 10.65 percent in the
Solapur District.
Area Not available for cultivation, The land put to use for purposes other
than agriculture such as building, pathways, roads, canals, rivers, bus stands,
railways, local reservoirs, swamps etc. are brought under this category. In the
year 2010-13 area under this category was 79000 hectares (i.e.5.30 percent)

3
https://cultural.maharashtra.gov.in/english/gazetteer/Solapur/agri_soils.html dated
2014/07/04
4
Solapur District Socio Economic Survey, (2001-2002), p.10.
5
Solapur District Socio Economic Survey, (2013-14)

57
Area not available for cultivation in the Solapur District was marginally
increased by 0.12 percent during the period of 2000-03 to 2010-2013.
Table No3.1
Land Use Pattern of Solapur District
(Average for Three Year)
Sr.No Year 2000-03 2010-13 % of change
1 Geographical Area 1487800 1487800 0.00
2 Forest Area 31900 35300 10.65
(2.14) (2.37)
3 Area not available for 78900 79000 0.12
cultivation (5.30) (5.31)
4 Other uncultivated land 75700 90900 20.08
excluding fallow land (5.08) (6.10)
5 Fallow Land 356500 251000 -29.59
(23.96) (16.87)
6 Net Area Sown 944800 1031600 9.18
(63.50) (69.34)
7 Gross Cropped Area 981000 1035100 5.51
(65.93) (69.57)
8 Area Sown More than ones 36200 35000 -3.31
(2.43) (2.35)
9 Cropping intensity 103.83 100.33 -3.37

Source: www.lup.dacnet.nic.in(dated 20/09/2015)

Note: figures in parenthesis shows percentage to total geographical area District

Land which were taken up for cultivation but have been temporarily put
off cultivation for a period of not less than one year but not more than five years
due to abject poverty of the cultivators, inadequate supply of water, silting of
canals and rivers etc are treated as other fallow land. The total fallow land in
the District accounts 251000 hectares (i.e.16.87 percent) in the year of 2010-13
during the period of 2000-03 to 2010-13 the fallow land in the District was
decline 29.59 percent.
Net area sown represents the area sown under first crop during the year
is area cultivated during any part of the agricultural year should come under
net area sown. In calculating the net area sown, area sown more than ones will
be counted only once. Out of geographical area of the District, 1031600

58
hectares of land (i.e. 69.34 percent) was the net sown area in the year 2010-13.
It was increased by 9.18 percent during the period of 2000-03 to 2010-13.
The area sown more than one represents the difference between the
gross area sown under all crops and the net area sown during the year. The area
sown more than once during 2010-03 is 3500 hectares (i.e.2.35 percent), which
was declined by 3.31 percent over a period of time.
The cropping intensity in the District was 100.33 in the year 2010-13.
Which was declined by 3.37 percent in the period of 2000-03 to 2010-13.
3.3 Cropping Pattern
Cropping pattern means the proportion of area under different crop at
a particular period. The change in cropping pattern in a particular span of time
clearly indicates the changes that have taken place in the agricultural
development. Agricultural loans play a vital role in this connection. Moreover,
Area under different crops would determine the generation of income and
employment. The trends in the cropping pattern in Solapur District with three
year average for the year 2000-03 and 2010-13 is shown in the table 3.2. In the
Solapur District Jawar, wheat and maize are the major cereal crops in the year
2010-13. The area under food grain crops was 7867.67 hectors (i.e. 69.24
percent). Among the food grain Jawar crop occupied highest area (i.e.51.70
percent) followed by wheat crop (4.95 percent) in the year of 2010-13.
Moreover among the pulses gram crop occupied highest area (i.e.3.75 percent)
than other pulses. Thus the cropping pattern in the District showed that, the
foodgrians crop are main. Among the food grains crops Jawar, occupied lion
share in the cropping pattern.
In case of non-food grain crops the position of total oil seed crops
showed that of the total gross cropped area 3.54 percent area was brought
under these crops in the year 2010-13. Moreover, among oilseeds groundnut
is the major crop having 0.70 percent. Among the cash crops the sugarcane has
occupied largest area 15.47 area, whereas the cotton has occupied a very small

59
area 0.10 percent of the gross cropped area in the District. Over a period it was
observed from table 3.2 that in the District the area under sugarcane increased
by 165.73 percent during the period of 2000-03 to 2010-13.
Table No. 3.2
Cropping Pattern in Solapur District
(Three Year Average)
Area in "00" he
Sr.No Crops 2000-03 2010-13 % of change
1 Rice 13.67 [0.13] 6 [0.05] -56.11

2 Wheat 510 [5.19] 486.33 [4.95] -4.64

3 Jawar 6752 [68.82] 5352.33 [51.70] -20.73

4 Bajara 300.67 [3.06] 115.33 [1.11] -61.64

5 Maize 264.33 [2.69] 437.33 [4.22] 65.45

6 Other cereals 13.00 [0.13] 35.01 [0.33] 169.31

7 Total Cereals 7853.67 [80.05] 6432.33 [62.14] -18.10

8 Tur 174.33 [1.77] 274 [2.64] 57.17

9 Gram 565.34 [5.76] 388.66 [3.75] -31.25

10 Other pulses 61.00 [0.62] 72.67 [0.70] 19.13

11 Total Pulses 800.67 [8.16] 735.33 [7.10] -8.16

12 Total Food grains 8554.33 [87.20] 7167.67 [69.24] -16.21

13 Sugarcane 603 [6.14] 1602.33 [15.47] 165.73

14 Cotton 49.67 [0.50] 10.67 [0.10] -78.52

15 Groundnut 114 [1.16] 72.67 [0.70] -36.25

16 Safflower 168.33 [1.71] 35.67 [0.34] -78.81
17 Other oil seeds 404.34 [4.12] 258.33 [2.49] -36.11

18 Total oilseeds 686.67 [6.99] 366.67 [3.54] -46.60

19 Gross Cropped Area 9810 10351 5.51

Source:http://mahaagri.gov.in/level3detaildisp.aspx?id=6&subid=11&sub2id=1(dow
nelodedon 16/06/2015)
Note: 1. figures in parenthesis on shows percentage to gross cropped area
2. Area under sugarcane shows actual area.

60
 The area under maize and Tur crops under also increased during the
same period in the District. Otherwise all other crops in the District observed
negative growth in the District over the period.
3.4 Production Pattern
The climatic condition of the District contribute to inferior output
pattern. Table 3.3 given the output pattern of the District for 2000-03 and
2010-13(Three year average). Food grain production was predominant in the
District, cereals contributing the major chunk.
Of the total cereals, output of Jawar was commanding and next came
maize. These two crops together comprised 74.05 percent of food grins
production of the District. Besides Jawar, maize and wheat also produced and
its share 13.73 percent of the food grains production. Pluses were relatively less
important, sharing only 8.60 percent of total food grains production of the
District. Gram contributed 5.21 percent of the pulses output. Among the non-
food crops sugarcane, cotton, groundnut and the oil seeds were conspicuous.
Perusal of trends in output changes in 2010-13 over 2000-03 that have taken
place in the District reveals the performance of maize (190.24 percent),
sugarcane(186.51 percent) and other cereals (184.43 percent),Tur(63.77
percent) other pulses(52.23) and gram (12.54 percent ) were the other crops
which followed the growth over the period.
For the District, output of main crops like maize, sugarcane, Tur, and
gram revealed an uptrends in more or less proportions, whereas the other
crops like rice, safflower, Bajara, cotton, groundnut and also Jawar revealed a
downtrends in more or less proportion. A positive feature treated of the
agriculture development of the District because of an upward trends in main
crops.

61
 Table No.3.3
Production Pattern in Solapur District
(Three year average)
Sr.No Crops 2000-03 2010-13 % of change

1 Rice 15 1.67 -88.87

[0.36] [0.03]
2 wheat 601.67 598.67 -0.50
[14.55] [13.73]
3 Jawar 2757 2357 -14.51
[66.71] [54.06]
4 Bajra 123.33 45.67 -62.97
[2.98] [1.05]
5 Maize 300.33 871.67 190.24
[7.27] [19.99]
6 Other cereals 38.67 109.99 184.43
[0.94] [2.52]
7 Total Cereals 3839 3984.67 3.79
[92.89] [91.40]
8 Tur 61.67 101 63.77
[1.49] [2.32]
9 Gram 202 227.33 12.54
[4.89] [5.21]
10 Other pulses 30 45.67 52.23
[0.73] [1.05]
11 Total Pulses 293.67 375 27.69
[7.11] [8.60]
12 Total food grains 4132.67 4359.67 5.49
[100.00] [100.00]
13 Sugarcane 48460 138843 186.51
14 Cotton 74 31 -58.11
15 Groundnut 104.33 82.33 -21.09
[29.89] [27.54]
16 Safflower 52.67 19.33 -63.30
[15.09] [6.46]
17 Other oil seeds 192.01 196.67 2.43
[55.02] [65.78]
18 Total Oilseeds 349 299 -14.33
[100.00] [100.00]
Source:http://mahaagri.gov.in/level3detaildisp.aspx?id=6&subid=11&sub2id=1((dow
nelodedon 16/06/2015)
Note: 1.The output of foodgrians & sugarcane is in tones
2. The output of cotton is in lakh bales
3. Figure in parenthesis shows percentage to total food grain and total oil
Seeds.

62
3.5 Yield Rates of Mains Crops
Table 3.4 given the yield rates of the principle crops for the year 2000-
03, and 2010-13 as a three year average.
Table No.3.4
Yield of Main Crops in Solapur District
(Three Year Average)
(In Kg per ha)
Sr.No Year/ Cops 2000-03 2010-13 % of change
1 Rice 1024 273 -73.34
2 Wheat 1181.67 1116 -5.56
3 Jawar 1065.33 861 -19.18
4 Bajara 420.33 316.33 -24.74
5 Maize 1281 1941 51.52
6 Other cereals 297 314 5.72
7 Total cereals 488.67 575.33 17.73
8 Tur 313.67 361 15.09
9 Gram 517 581 12.38
10 Other pulses 491 628 27.90
11 Total pulses 415.33 494.33 19.02
12 Total food grains 482.67 565.33 17.13
13 Sugarcane 80 85.67 7.09
(tones per
hectors)
14 Cotton 243.67 506.33 107.79
15 Groundnut 1639.66 1935 18.01
16 Safflower 313.33 473.67 51.17
17 Other oilseeds 289.62 536.36 85.19
18 Total oilseeds 497.67 830.33 66.84
Source:
http://mahaagri.gov.in/level3detaildisp.aspx?id=6&subid=11&sub2id=1(downloded
on 16/06/2015)

63
 Taking as the reference year, 2000-03 crops having higher yields ware
Groundnut (1639.66 kg) maize (1281 kg), wheat (1181.67 kg) and Jawar
(1065.33 kg). Among the food grain crops, maize has occupied first rank in the
District with yield of 1281 kg. Per hector and then come the Wheat. Other
cereals have also given more yields in the District such as rice, Jawar, Gram and
Bajara. The low level yield crops such as Tur, safflower and cotton were
observed in the District. Variation in the yield rates of various crops were
caused mainly by the bio-chemical technology. It was observed that crops
having higher yields also had higher coverage under high yielding varieties.
Moreover, it was observed that during 2000-03 to 2010-13, rice, Bajara,
Jawar and wheat have shown negative change. While remaining all the crops
have showed the positive change in the District. In case of cotton it has
registered the increase of 107.79 percent, followed by maize (51.52 percent) in
yield in the District. The yield of food grains crops increased by 17.13, where
the growth in yield of cereals was 17.73 percent. Moreover the yield of pulses
has increased by 19.02 percent. About the sugarcane crop its yield was
increased by 7.09 percent during the same period in the District.
3.6 Inputs Used in Agriculture
This section examine the progress of modern agriculture inputs like
electricity consumption for agriculture purpose, chemical fertilizer
consumption, seeds supply and mechanized inputs in the District.
Seeds, fertilizers Electricity Consumption for agriculture, Agricultural
implements and machinery and pesticides also credit establish the six pillars of
modern agriculture development. The Green Revolution in India was begun by
the introduction of the high Yielding Varieties (HYV) of seeds complemented by
effective use of fertilizers and expansion of irrigation. Farmers often see a direct
connect between seeds, fertilizer and credit on the one hand and crop yield on

64
the other.6 Moreover these inputs are of great importance for accelerating the
growth in agriculture, thereby raising the farm income and employment.
3.6.1 Irrigation
The problem of irrigation has been an important one about the
Solapur District since long. Agricultural activities in the Solapur District are still
dependent on the monsoon. Irrigation aims at making good the shortages of
rainfall thereby bringing more land under the plough, which otherwise remains
uncultivated for want of water and increasing the double-cropped area. At
present, the main sources of water supply for agriculture in the District are
wells, tanks and canals. Lift irrigation from rivers and wells through the
installation of electric pumping sets and oil-engines has also benefited
agriculture in the District. Availability of irrigation facility not only enables the
farmers to make use of fertilizers and new varieties of seeds, put also helps to
raise the cropping intensity in agricultural, thereby raising the level of output
and farm income. Both the level and quality of irrigation are important in
determining the efficiency of agriculture.7
The table 3.5 shows the progress of irrigation facilities during 1990- 91
to 2010-2011. In the year 2010-11 the gross irrigated area was 459.81 thousand
hect, among that, the area under irrigation through surface irrigation was
249.36 thousand hect (i.e.54.27 percent) Over a period of time, the area under
well irrigation was increased by 60.50 percent, followed by surface irrigation
(i.e. 26.41 percent) Moreover the irrigation intensity was 173.86 in 1990-91,
which reduced up to 154.81 in 2010-11. Thus the variation in irrigation intensity
ultimately reflected the fact that the irrigation base in the District is itself
unstable, capacity of which ultimately depends upon the rainfall condition.

6
NITI Aayog, Government of India(2015), Raising Agricultural Productivity and
Making Farming Remunerative for Farmers
7
Dr. Santosh Kadam (2009), New Agricultural Technology: Socio-Economic Impact,
Reliance publication house, new Delhi, pp-74-75

65
 Table No. 3.5
Irrigation in Solapur
(In “000”hec)
Sr.No Source 1990-91 2000-01 2010-11 Percent of
Change
1 Surface Irrigation 197.43 259.47 249.56 26.41
(60.11) (57.99) (54.27)
2 Well 131 188 210.25 60.50
(39.89) (42.01) (45.73)
3 Net Irrigated Area 190 269 297 56.32
4 Gross Irrigated Area 328.43 447.47 459.81 40.00
(100.00) (100.00) (100.00) (100.00)
5 Irrigation Intensity 172.86 166.34 154.81 -10.44
Source: irrigation department of Maharashtra Government
Note: Figure in parenthesis shows percentage to gross irrigated area

3.6.2 Seed Supply

Seed is the most crucial, vital and basic input for attaining
sustained growth in agricultural production and productivity. Improved seeds
has a special place amongst all the inputs required for agricultural production.

Maharashtra State Seed Corporation (MSSC) and National Seed

Corporation (NSC) are the key Public Sector Organizations in production and
supply of quality seeds. Approximately 265 private seed producers also sell
their seeds of field and vegetable crops. Mahabeej, National Seed Corporation
and private seed companies are the main seed supplying agencies in the state.
This agencies may be inspire to take their seed production project on farmer’s
field on large scale so farmers get more accessibility and with economy rate.8

Table 3.6 shows the growth of seeds supply in the District from 2005 to
2013. The share in supplying of seeds by public sector declined marginally, while
the share of private sector was increased the period during 2005 to 2013 in

8
Task force on Agriculture development, government of India and planning commission,11th
five year plan

66
Solapur District. Total seed supply in the District was 12.77 thousand qt in the
year 2005, which raised up to 49.97 thousand qt in 2013. During the period of
2005-2013 the Compound growth rate of seed supply by public and private was
16.69 and 6.53 percent respectively in Solapur District during.

Table No.3.6
Growth of Seeds Supply in Solapur District (2005 -2013)
(In 000 QT)
Sector Total
Sr.No Year Public Private
1 2005 10.23 2.54 12.77
(80.11) (19.89) (100)
2 2006 19.91 13.25 33.16
(60.04) (39.96) (100)
3 2007 12.01 6.33 18.34
(65.49) (34.51) (100)
4 2008 14.35 10.01 24.36
(58.91) (41.09) (100)
5 2009 14.27 9.23 23.50
(60.72) (39.28) (100)
6 2010 33.88 15.94 49.82
(68.00) (32.00) (100)
7 2011 32.92 5.09 37.01
(86.61) (13.39) (100)
8 2012 30.46 5.12 35.58
(85.61) (14.39) (100)
9 2013 36.69 13.28 49.97
(73.42) (26.58) (100)
10 CGR 16.69 6.53 13.87
Source: Socio- economic Solapur report of Solapur District, 2013
Note: figure in parenthesis shows percentage to Total

3.6.3 Chemical Fertilizer Consumption

The most essential requirement in stepping up agricultural
production is the use of suitable fertilizers. The application of fertilizers has
become important to make agronomy more profitable and to meet the
increasing demand for food-grains. The application of chemical fertilizers needs
rich supply of water. Heavy doses of fertilizers have applied to the fruit-crops

67
and other garden-crops wherever irrigation facilities are available. They have
also used for food-crops and non-food crops and for commercial crops. The
cultivators have realized the value of chemical fertilizers because they have
obtained higher yield through their application. In the District, there has been
an increasing awareness about the use of chemical fertilizers for boosting
agricultural production.
Table No.3.7
Tehsil Wise Use of Chemical Fertilizer in Solapur District
(Three year average)
(In MT)
Sr.No Tehsil 2004-2007 2010-13 % of change

1 Karmala 21262.7 44902.67 111.18

(8.77) (9.54)
2 Madha 26523.7 51344.67 93.58
(10.94) (10.91)
3 Barshi 17921 43377.33 142.05
(7.39) (9.21)
4 North Solapur 11970.7 16115.67 34.63
(4.94) (3.42)
5 Mohol 17802.3 48531 172.61
(7.34) (10.31)
6 Pandharpur 45726.3 77659.67 69.84
(18.86) (16.50)
7 Malshiras 43403.3 58027.67 33.69
(17.90) (12.33)
8 Sangola 17733.3 31229.33 76.11
(7.31) (6.63)
9 Mangalwedha 11330 31593.67 178.85
(4.67) (6.71)
10 South Solapur 16017.3 34678.67 116.51
(6.61) (7.37)
11 Akkalkot 12752.3 33324 161.32
(5.26) (7.08)
12 Total District 242442.03 470784.35 94.18
(100.00) (100.00)
Source: Socio Economic Survey Report of Solapur District 2009 To 2013
Note: figure in parenthesis shows percentage to Total

68
 In the table 3.7 tehsil was information is given about the consumption
chemical fertilizers consumption in the Solapur District (three year average of
i.e.2004-2007 and 2010-2013.) With reference to the year of 2010-13, total
consumption of chemical fertilizers in the District was 470784.35 MT. Which
was near to half (i.e.24244.03 MT) in 2004-07 compared to year of 2010-13.
Over period of time consumption of chemical fertilizer in the District was raised
by 94.18 percent.
3.6.4 Agricultural implements and machinery
Farm implements have closely adjusted to the farmer’s environment.
There is little possibility of change in the application of agricultural implements.
Agricultural operations like as tilling, cultivation and many other operations are
depend on the various types of implements and machinery. The implements
and machinery used in the District are ploughs for ploughing, moreover for
crushing the clods, seeds driller for sowing, hoes for inter culture, most, oil
engines and electric pumps for water lifting, carts for transport and tractor for
many agricultural operations. Out of these, iron and wooden ploughs, electric
pumps, tractors and other machinery are wide spread implements in the
Solapur District. The agriculture implements are subject to constant change
because of changing socio-economic status of farmers and technological
changes. Table 3.8 shows the progress in use of agricultural machinery and
implements in Solapur District during the period of 1992 to 2014.
The ploughs are widely used all over the District. In the year 2014 use of
all types ploughs was 69 thousand among them iron ploughs use was more than
wooden ploughs. The use of carts in 2014 was 44 thousand and ploughs was 69
thousand. The use of oil engine pumps in the same year was 6.10 thousand,
whereas 79.66 thousand electric pumps were due to expansions of rural
electrification the use of electric pumps increased by 98.51 percent.

69
 Table No.3.8
Agricultural Machinery and Implements in Solapur District
(In thousands)
Sr.No Agriculture Implements 1992 2001 2014 % of change
And Machinery
1 Ploughs(wooden) 30.24 15.03 28 -7.42
2 Ploughs(iron) 58.277 37.18 41 -29.65
3 Total Ploughs 88.52 52.21 69 -22.05
4 Carts 35.59 35.48 44 23.60
5 Oil Engine Pumps 9.018 7.46 6.10 -32.26
For Irrigation Purpose
6 Electric Pumps For 40.12 52.36 79.66 98.51
Irrigation
7 Sugarcane Crushers 1.08 1.78 2.69 149.35
(In Numbers)
8 Tractors 1.99 3.74 6.96 248.82
Source: Socio-Economics Survey report 2015

The use of tractor in agriculture is very important due to having

replacement capacity over the other traditional agricultural implements. In this
connection in the year of 2014 there was 6.96 thousand tractors in use for
agriculture purpose in Solapur District. Over a period of 1992 to 2014 the use
of tractor in Solapur District was increased very highly (i.e.248.82 percent)
followed by the use of sugarcane crusher (i.e.149.35 percent) and electronic
pumps (i.e.98.51 percent).while the use of oil engine pumps (32.26 percent)
and ploughs (22.05 percent) in the District was declined among the agriculture
implements.

3.6.5 Electricity Consumption for agriculture

There is a growing demand for electrical energy for irrigation
requirements in Solapur District. Table 3.9 shows the progress in electricity
consumption for agricultural purpose during 2000-01 to 2012-13. In the year
2000-01 the electricity consumption for agricultural purpose was 12300 kg/WH.

70
It was raised to 216930 kh/wh in 2012-13 in the Solapur District. The trends of
electricity consumption for agricultural purpose in the District is upward. The
compound growth rate of electricity consumption in Solapur District for
agriculture purpose was 84.57 percent during the period of 2000-01 to 2012-
13.

Table 3.9
Electricity consumption for agricultural in Solapur
(In 000 kg/WH)
Sr.No Year Eelectricity consumption

1 2000-01 12300
2 2001-02 12300
3 2002-03 1200
4 2003-04 14500
5 2004-05 14500
6 2005-06 116150
7 2006-07 886700
8 2007-08 149740
9 2008-09 1539670
10 2009-10 1657320
11 2010-11 1831680
12 2011-12 2509530
13 2012-13 2473430
CGR 84.57
Source: various issue of Socio economic survey Report of Solapur District

3.7 Pattern of Land Holdings in Solapur

The important part of any agriculture economy is the land distribution
among the various size classes. The operational holding can be defined as all
land, which is used wholly or partly for agriculture production and operated as
one technical unit by one person along or with others without regard to title,

71
 legal form, size or location. Agricultural holdings is very important in the context
of productivity of agriculture and well-being of the agricultural population.
Solapur District is not an exception to the general experience as to the low
productivity of agriculture due to the scattered remains of land. With the
increase in population over the past few decades, the pressure of population
on available land has also increased. Moreover, the size of operational holdings
determined the magnitude of income generation, the distribution of
operational holdings would decide the distribution of income of the farm
households.

Table No. 3.10

Number and Area of Operational Holding
Sr.No Class 2000-2001 2010-2011 % of change
Number Area Number Area Number Area
1 Marginal 181672 104228 236819 129616
[less than 1 ha] 30.36 24.36
(32.13) (8.75) (35.46) (10.28)
2 Small 175693 261869 212830 305392
[1 to 1.99 ha] 21.14 16.62
(31.04) (21.98) (31.87) (24.23)
3 Semi-medium 145520 39723 157114 422553
[2 to 3.99 ha] 7.97 963.75
(25.74) (33.35) (23.52) (33.52)
4 Medium 56199 323843 55050 312795
[4 to 9.99 ha] -2.04 -3.41
(9.94) (27.19) (8.24) (24.82)
5 Large 6305 103990 6097 90103
[10 ha and -3.30 -13.35
(1.12) (8.73) (0.91) (7.15)
above]
6 All size class 565389 1191162 667910 1260459
18.13 5.82
(100.00) (100.00) (100.00) (100.00)
Sources: Maharashtra Agriculture Census report 2010-11
Note: figure in parenthesis shows percentage to Total

Data given in table 3.10 shows that the number and area of operational
holding to size class of holding in Solapur District. In the year of 2010-11 there
are higher number of marginal farmers (35.46 percent), followed by small
72
farmers (31.87 percent), having 129616 hect (i.e.10.28 percent) and 305392
hect (24.23 percent) of land respectively. At the same time 6097 farmers
(i.e.0.91 percent) were in a big size holding (i.e.7.15 percent) in the District. over
a period of time 2000-01 to 2010-11 the number of operational holdings of the
semi- medium farmers increased by 7.97 percent and the holding area by a
63.73 percent, followed by marginal farmers number(i.e.30.36 percent), with
holding area by 24.36. On the hand the number and area operated by big and
medium farmers was declined in the same period.

3.8 Population
Total population and its distribution among the rural and urban are given
in the table 3.11 for the year 1991, 2001 and 2011. The total population in
Solapur District in the year 1991 was 3231 thousands and out of these 2302
thousands (71.24) was rural population and 929(28.75) was urban population.

Table No. 3.11

Trends in Population in Solapur District
(In “000”)
Sr.No Population Census Year Percent of Change
1991 2001 2011 1991- 2001- 1991-
2001 2011 2011
1 Total 3231 3850 4,317
19.16 12.13 33.61
population
2 Rural 2302 2623 2,918 13.99
11.20 26.76
(71.24) (68.17) (67.59)
3 Urban 929 1225 1,399
31.86 14.20 50.59
(28.75) (31.83) (32.41)
4 Male 1671 1990 2,228
19.09 11.91 33.27
(51.71) (51.69) (51.60)
5 Female 1560 1860 2,089
19.15 12.31 33.82
(48.31) (48.31) (48.40)
6 Density 217 258 290 18.89 12.40 33.64
Source: Census of India 2011/Solapur District report-B
Note: figure in parenthesis shows percentage to Total

73
 The proportion of male and female population in the total population
was 51.71 and 48.31 percent respectively in the same year. However, after 20
year i.e.in 2011 the total population in Solapur District was raised to 4317
thousands, of which 2,918(67.59 percent) thousands population was rural and
1,399(32.41 percent) was urban. It thus showed that the population increased
by 33.61 percent during 1991-2011. However, the relative share of rural and
urban population did not change significantly. Moreover, the population
density increased from 217 per sq.km to 290 per sq.km from1991 to 2011.
In short the population in Solapur District increased by 33.61 percent,
the urban population increased very highly (50.59 percent) than the rural
population (26.76 percent).
3.9 Growth of Agriculture Finance in District
In Solapur District as in other Districts of the State one comes
across the same set of credit institutions, institutional and non-institutional
viz.,commercial banks, cooperative banks and regional rural banks, money-
lenders, banks, co-operative societies, joint-stock companies, and other
agencies extending financial assistance to the people. Of these, the
moneylender is the oldest institution, which has survived through centuries.
Although it still holds a paramount influence over the agricultural masses, its
importance has been gradually declining with the expansion of the co-operative
movement.
3.9.1 Bank Branches Expansion

For overall development of an agricultural, the credit have play a very

significant role in development of agronomy. Banks branches expansion is the
most important instrument for deposit mobilisation and loan distribution for
any banks. The bank branch expansion programme of commercial, private and
cooperative banks. Help to the farmers, people and Government which way
have made transfer of payments through the checks, demand draft and transfer

74
order etc. by the banks. Hence, the availability of banks in the Solapur District
is of prime importance for the transaction of money.
Table No. 3.12
Bank Branches Expansion in District
Sr.No Year Bank Branches
1 2000-01 440
2 2001-02 444
3 2002-3 444
4 2003-04 551
5 2004-05 475
6 2005-06 688
7 2006-07 688
8 2007-08 688
9 2008-09 439
10 2009-2010 450
11 2010-2011 450
12 2011-2012 465
13 2012-2013 489
14 2013-2014 507
15 CGR 0.06
Source: State level banker committee, Pune-2015.

Chart No.3.1
Bank Branches
688

688

688
551

507
489
475

465
450

450
444

444
440

439

YEAR

Table 3.12 shows the progress of bank branches expansion in Solapur

District during the period for 2000-01 to 2013-2014. The number of bank

75
branches in 2000-01 was only 440, now in 2013-14 it was 507. The compound
growth rate of Bank branches expansion was 0.06 percent during 2000-01 to
2013-14 in Solapur District.

3.9.2 Area Wise Classification of Bank Branches in Solapur

One of the major achievements of the nationalization of the banking

system was the rapid expansion of branches in rural areas by the scheduled
commercial banks, which contributed towards accelerating the process of
developing banking habits even in rural areas.9
Table No. 3.13
Distribution of Bank Branches in Solapur District
(Position as on 30.06.2014)
Branch Network
Sr.No Name of Bank Rural Semi Urban Urban Total
1 Public Sector Banks 85 63 66 214
(39.72) (29.44) (30.84) (100.00)
[26.81] [67.02] [68.75] [42.21]
2 Private Sector Banks 14 12 12 38
(36.84) (31.58) (31.58) (100.00)
[4.42] [12.77] [12.50] [7.50]
1 +2 Commercial Banks 99 75 80 254
(38.98) (29.53) (31.50) (100.00)
[31.23] [79.79] [83.33] [50.10]
3 Cooperative Banks 193 13 14 220
(87.73) (5.91) (6.36) (100.00)
[60.88] [13.83] [14.58] [43.49]
4 Other Banks 25 6 2 33
(75.76) (18.18) (6.06) (100.00)
[7.89] [6.38] [2.08]
5 Grand Total 317 94 96 507
(62.52) (18.54) (18.93) (100.00)
[100.00] [100.00] [100.00] [100.00]
Source: State level banker committee Pune 2014
Note: figure in () and [] parenthesis shows percentage to Grand Total and total

9
Deb, Kalipada (1988), Indian Banking since Independence, Ashish Publication House,
New Delhi.

76
 In the Solapur District various banks were working in the rural semi-
urban and urban area. In the year 2014 the total number of public sector bank
branches in the District was 214, among them 85 (39.72 percent) were working
in the rural area, where 63(29.44 percent ) and 66(30.84 percent) branches in
semi-urban and urban areas respectively. Moreover 38 number of private
sector banks branches are working in the District, out of them 14(36.84 percent)
in rural area, 12(31.58 percent) in semi urban and 12(31.58 percent) were
urban area. Majority of cooperative bank branches (87.73 percent) working in
the rural area and rest of them (5.91 percent) and (6.36 percent) were in semi
urban area and urban area of Solapur District respectively. In the Solapur
District total 507 banks branches of various banks have working 62.52 percent
in rural, 18.54 percent in semi urban and 18.93 percent in urban area.
Chart No.3.2
Distribution of Bank Branches in Solapur District

Urban
19%

Semi-Urban Rural
18.54 % 62.52 %

3.9.3 Growth in Advances by Various Banks in Solapur District

Commercial banks were a significant part of the Solapur District financial

system. The operations of the commercial banks are regulated by the Reserve
Bank of India. Banks are categorized into Schedule Commercial Banks and Non-

77
Scheduled Commercial Banks. Former category is further classified into public
sector banks, private sector banks (old and new), and foreign banks.
Table No. 3.14
Advances Given By Commercial Banks,
Regional Rural Banks and Cooperative banks
(In 000 lakhs)
Sr.No Year Commercial Regional District Central Total
Banks Rural Cooperative
Bank Banks
1 2006 153.84 5.902 163.31 325.05
(47.62) (1.83) (50.55) (100)
2 2007 211.37 6.40 189.29 407.06
(51.93) (1.57) (46.50) (100)
3 2008 256.19 7.17 180.88 444.24
(57.67) (1.61) (40.72) (100)
4 2009 292.76 5.81 177.11 475.68
(61.55) (1.22) (37.23) (100)
5 2010 362 8.08 215.59 585.67
(61.81) (1.38) (36.81) (100)
6 2011 391.75 15.45 293.51 700.71
(55.91) (2.20) (41.89) (100)
7 2012 494.08 28.32 296.5 818.9
(60.33) (3.46) (36.21) (100)
8 2013 561.17 34.73 405.53 1001.43
(56.04) (3.47) (40.50) (100)
9 2014 869.79 42.99 292.68 1205.46
(72.15) (3.57) (24.28) (100)
10 CGR 21.05 32.19 10.73 16.57
Source: lead bank scheme, Solapur District 2006 to 2014
Note: figure in parenthesis shows percentage to Total

Table 3.14 shows the growth of Advances by commercial banks, regional

rural banks and District central Cooperative bank in the Solapur District. During
the period of 2006 to 2014. In the year 2006 total advanced given by
commercial banks, regional rural bank and District central cooperative bank
was Rs.325.05 thousand lakh among them Commercial banks share of was

78
47.62 percent,1.83 percent Regional Rural Banks and District Central
Cooperative Banks 50.55 percent respectively. While in the year 2014 the share
of Commercial Banks in total advances given to costumes of the District was
almost higher (i.e.72.15 percent),where Regional Rural Banks and District
Central Cooperative banks share was 3.57 percent and 24.28 percent
respectively. The compound growth rate of collective advances was 16.57
percent during the period of 2006-2014. While in the same period the
compound growth rate of advances given by Regional Rural Bank 32.19 percent,
compared to commercial banks 21.05 percent and Cooperative Banks 10.73
percent.
3.9.4 Priority Sector Lending
The policies towards priority sector lending (PSL) were introduced in the
1970s accorded significant priority to agriculture, exports and micro and small
enterprises.10 Priority Sector refers to those sectors of the economy which may
not get timely and adequate credit in the absence of this special dispensation.
Priority Sector Lending is an important role given by the Reserve Bank of India
(RBI) to the banks for providing a specified portion of the bank lending to few
specific sectors like agriculture and allied activities, micro and small enterprises,
poor people for housing, students for education and other low income groups
and weaker sections.. This is essentially meant for an all-round development of
the economy as opposed to focusing only on the financial sector.11 The targets
for Priority Sector Lending were first set in 1974 at 33.3% by March 1979.
Private sector banks were also advised to achieve the same target. RBI directed
all the Commercial Banks to ensure the flow of 40% of the net bank credit to

10
Ahmed, U. D. (2010). Priority Sector Lending By Commercial Banks in India: A Case of Barak
Valley. Asian Journal of Finance & Accounting, 2(1).
11
articles.economictimes.indiatimes.com/2011-05-10/news/29528246_1_priority-sector-
priority-sector-lending-net-bank-credit(02.06/2015)

79
priority sector by March 198512. With a sub target of 18 percent for agriculture
and 10 percent to weaker sections of the community.13
Table No. 3.15
Priority Sector Lending in Solapur District
(In 000 lakh)
Sr.No Year Commercial Regional Rural District Central Total
banks Bank Cooperative
bank
1 2006 108.21 5.34 103.81 217.36
(49.78) (2.46) (47.76) (100)
2 2007 147.13 5.82 114.68 267.63
(54.98) (2.17) (42.85) (100)
3 2008 178.68 6.55 108.76 293.99
(60.78) (2.23) (36.99) (100)
4 2009 218.71 5.02 986.77 1210.5
(18.07) (0.41) (81.52) (100)
5 2010 270.2 6.49 215.59 492.28
(54.89) (1.32) (43.79) (100)
6 2011 326.22 12.67 293.51 632.4
(51.58) (2.00) (46.41) (100)
7 2012 346.63 24.08 296.5 667.21
(51.95) (3.61) (44.44) (100)
8 2013 377.48 32.48 405.53 815.49
(46.29) (3.98) (49.73) (100)
9 2014 645.67 40.9 292.68 979.25
(65.94) (4.18) (29.89) (100)
10 CGR 21.52 32.38 15.66 18.83
Source: Lead Bank Scheme, Solapur District 2006 To 2014
Note: figures in parenthesis shows percentage to total

Table 3.15 is shows the progress of priority sector leading in the Solapur
District from 2006 to 2014 by Commercial Banks, Regional Rural Ranks and
District Central Cooperative Banks. In the year 2006 priority sector landing was
214.36 thousand lakh among that the share of Commercial Banks was almost
higher (i.e.49.78 percent), compared to Regional Rural Ranks (i.e.2.46) District

12
Sumit Jain (2015), ‘Rethinking Priority Sector Lending for Banks in India’, IIBF Macro
Research Paper for the Year 2014-15 Mumbai.
13
Reserve Bank of India, Bulletin, March-2010-2011.

80
Central Cooperative Banks (i.e.47.76 percent). While in the year 2014 total
priority sector landing was Rs 979.25 thousands lakh with higher share of
Commercial Banks (65.94 percent), followed by District Central Cooperative
Banks (29.89 percent) and Regional Rural Ranks (4.18 percent) in the District.
Over a period of 2006-2014, the compound growth rate of priority sector
leading by the priority sector lending by banks was 18.83 percent. Moreover
the compound growth rate of Regional Rural Ranks was higher (32.38 percent)
to compered Commercial Banks (21.52 percent) and District Central
Cooperative Banks (15.66 percent) in the District.
It is said that increase in total advances by banks is a good indicator for
economic development. So on the same ground increase in priority sector
lending helps to its development. But for to find out real picture of priority
sector lending it is a need to find a percentage of share of priority lending in
total advances by banks. On this ground table 3.16 provide the data on
percentage share of propriety sector advances in total advances in Solapur
District.
Table 3.16
Percentage of Priority Sector Lending In total Advances

Sr.No Year Commercial Regional Rural District Central Total

Banks Bank Cooperative
Bank
1 2006 70.33 11.30 70.21 66.86
2 2007 69.60 44.06 57.47 65.74
3 2008 69.74 91.35 60.12 66.17
4 2009 74.70 86.40 96.38 68.21
5 2010 74.64 80.32 100.00 84.05
6 2011 83.27 82.00 100.00 90.25
7 2012 70.15 85.02 100.00 81.47
8 2013 67.26 93.52 100.00 81.43
9 2014 74.23 95.13 100.00 81.23
Source: Lead Bank Scheme, District Level Review Committee Meeting From 2006 To
2014
The above table shows that, in the year 2006 the share of priority sector
lending was 66.86 percent, while it was raised to 81.23 percent in 2014.

81
Moreover priority sector lending given by Commercial Banks in the year 2006
was almost higher (i.e. 70.33) compared to District Central Cooperative Banks
(i.e.70.21) and Regional Rural Banks (i.e.11.30). While in the year 2014 priority
sector lending given by District Central Cooperative Banks was almost higher
(i.e100.00 percent), followed by Regional Rural Banks (95.13 percent) and
commercial banks (74.23 percent). It means that to provide maximum advances
to priority sector, the District Central Cooperative Banks where playing chief
role followed by Regional Rural Banks on the other hand. The role Commercial
Banks was found lagging behind in priority sector lending over a period of 2006
to 2014 in Solapur District.

Graph No.3.3
Percentage of Priority Sector Lending in Total Advances
100
90
80
70
60
50
40
30
20
10
0
2006 2007 2008 2009 2010 2011 2012 2013 2014
Commercial Banks Regional Rural Banmks
District Central Cooperative Banks

3.9.5 Agriculture Advance

Table 3.17 is shows the growth in agriculture advance by Commercial

Banks, Regional Rural Banks and District Central Cooperative Banks from 2006
to 2014.

82
 Table No. 3.17
Agriculture Advance
(000 lakhs)
Sr.No Year Commercial Regional Rural District Central Total
Banks Bank Cooperative
Bank
1 2006 57.96 4.8 103.67 166.43
(34.83) (2.88) (62.29) (100)
2 2007 81.17 5.13 65.56 151.86
(53.45) (3.38) (43.17) (100)
3 2008 99.27 5.83 108.76 213.86
(46.42) (2.73) (50.86) (100)
4 2009 133.24 4.47 98.41 236.12
(56.43) (1.89) (41.68) (100)
5 2010 172.62 5.25 85.7 263.57
(65.49) (1.99) (32.52) (100)
6 2011 194.75 11.26 85.03 291.04
(66.92) (3.87) (29.22) (100)
7 2012 210.01 19.26 111.02 340.29
(61.72) (5.66) (32.63) (100)
8 2013 249.45 26.88 124.56 400.89
(62.22) (6.71) (31.07) (100)
9 2014 426.29 33.28 131.28 590.85
(72.15) (5.63) (22.22) (100)
10 CGR 24.67 30.62 4.72 16.41
Source: lead bank scheme, District level review committee meeting from 2006 to
2014
Note: figures in parenthesis shows percentage to Total
Total agriculture advanced by Commercial Banks, Regional Rural Banks
and District Central Cooperative Banks was Rs.166.43 thousands lakhs in 2006
while in the year 2014 it was 590.85 thousand lakhs. The share of District
Central Cooperative Banks in total agricultural advances was almost higher
(i.e.62.29) compare to Commercial Banks (34.83 percent) and Regional Rural
Banks (2.88 percent) in the year of 2006.While in the year 2014 the share of
Commercial Banks in total agriculture advances was almost higher (i.e.72.15
percent), followed by District Central Cooperative Banks (22.22 percent) and
83
Regional Rural Banks (5.63 percent) in the District. Over a period of 2006-2014
the compound growth rate of agriculture advance by collectively banks was
16.41 percent. Moreover the compound growth rate of agriculture advance
given by Regional Rural Banks was major (i.e30.62 percent) followed by
Commercial Banks (24.67 percent) and District Central Cooperative Banks (4.72
percent) in Solapur district.
Table 3.18
Percentage of Agriculture Loans to Total Advances
Sr.No Year Commercial Regional Rural District Central Total
Banks Bank Cooperative
Bank
1 2006 37.67 81.32 63.49 51.20
2 2007 38.40 80.15 34.63 37.30
3 2008 38.74 81.31 60.12 48.14
4 2009 45.51 76.93 55.56 49.63
5 2010 47.68 64.97 39.75 45.00
6 2011 49.71 72.88 28.97 41.53
7 2012 42.50 68.00 37.82 41.55
8 2013 44.45 95.82 30.71 40.03
9 2014 49.01 77.41 44.85 49.01
Source: lead bank scheme, Solapur District 2006 to 2014

Table 3.18 provide the data on percentage share of agriculture loan in

total advances in the year 2014 the share of agriculture advance in total
advances was 49.01 percent while it was 51.20 percent in 2006. Moreover
Regional Rural Bank have given higher agriculture advances (i.e.91.32) to its
total advances in 2006.However it was 63.49 percent by District Central
Cooperative Banks and 37.67 percent by Commercial Banks. While in 2014 also
Regional Rural Bank has again given higher advances (77.41 percent) to its total
advance, followed by Commercial Banks (49.01 percent) and District Central
Cooperative Banks (44.85 percent) in the district.

84
 Graph No.3.4
Percentage of Agriculture Loans to Advances
Commercial Banks Regional Rural Banks District Central Cooperative Banks
100
90
80
70
Percentage

60
50
40
30
20
10
0
2005 2006 2007 2008 2009 2010
Year 2011 2012 2013 2014 2015

It means that to provide maximum advances to agriculture the Regional

Rural Banks were playing chief role followed by commercial banks on the other
hand. The role District Central Cooperative Banks were found lagging behind in
agriculture loan over a period of 2006 to 2014.
The share of agriculture advances in total advances is having importance.
However the share of agriculture advances in priority sector lending is having
great importance for agriculture development.
Table No 3.19
Percentage of Agriculture Advance in Priority Sector Lending
Sr.No Year Commercial Regional Rural District Central Total
Banks Bank Cooperative
Bank
1 2006 53.56 89.88 99.86 76.56
2 2007 55.16 88.14 57.16 56.74
3 2008 55.55 89.00 100.00 72.74
4 2009 60.92 89.04 57.62 72.76
5 2010 63.88 80.89 39.75 53.47
6 2011 63.88 88.87 28.97 46.02
7 2012 60.58 79.98 37.82 51.00
8 2013 66.06 82.75 30.71 49.15
9 2014 66.02 81.36 44.85 60.33
Source: lead bank scheme, Solapur District 2006 to 2014

85
 The above the table 3.19 show that, the share of agriculture
advances in priority sector lending was 60.33 percent in the year 2014,
while it was 76.56 percent in the year 2006.moreover in the year 2006,
district central cooperative banks have given higher agriculture advances
(i.e.99.86) to its priority sector lending, where it was 89.88 percent by
Regional Rural Banks and 53.56 percent by Commercial Banks. However
in 2014 Regional Rural Banks given higher agriculture advances (81.96
percent) to priority sector lending, followed by Commercial Banks (66.02
percent) and District Central Cooperative Banks (44.85 percent). The
share of District Central Cooperative Banks in agriculture advances to
priority sector lending was found declined over a period of 2006 to 2014.
It was due to increasing NPA of the District Central Cooperative Banks in
Solapur district.

Graph No.3.5
Percentage of Agriculture Advance in Priority Sector Lending

86
3.10 Conclusion

It was observed that, in the study area the under forest was increased
during 2000-03 to 2010-13. The cropping intensity in the District was declined
in the period of 2000-03 to 2010-13. It was found that, the area under food
grain crops was 69.24 percent. Among the food grain Jawar crop occupied
highest area followed by wheat crop in the year of 2010-13. Moreover among
the pulses gram crop occupied highest area 3.75 percent than other pulses. In
case of non-food grain crops the position of total oil seed crops showed that of
the total gross cropped area 3.54 percent area was brought under these crops
According to output pattern in the study are of the total cereals, output
of Jawar was commanding and next came maize. These two crops together
comprised 74.05 percent of food grins production of the District. Besides Jawar,
maize and wheat also produced and its share 13.73 percent of the food grains
production. Pluses were relatively less important, sharing only 8.60 percent of
total food grains production of the District.
It was observed that, yields of Groundnut (1639.66 kg) maize (1281 kg),
wheat (1181.67 kg) and Jawar (1065.33 kg) found in study area. Among the food
grain crops, maize has occupied first rank in the District Per hector and then
come the Wheat. Moreover, it was observed that during 2000-03 to 2010-13,
rice, Bajara, Jawar and wheat have shown negative change. While remaining all
the crops have showed the positive change in the District. In case of cotton it
has registered the increase of 107.79 percent, followed by maize in yield in the
District. The yield of food grains crops increased by 17.13, where the growth in
yield of cereals was 17.73 percent. It was observed that, the share in supplying
of seeds by public sector declined marginally, while the share of private sector
was increased the period during 2005 to 2013 in Solapur District. It was found
that, electricity consumption for agricultural purpose was raised in the Solapur
District.

87
 It was found that in the study area in year of 2010-11 there are higher
number of marginal farmers 35.46 percent, followed by small farmers 31.87
percent. At the same time 0.91 percent farmers were in a big size holding in the
District. It was found that, the bank branches were expanding in Solapur District
during the period for 2000-01 to 2013-2014. In the Solapur District various
banks were working in the rural semi-urban and urban area. In the year 2014
the total number of public sector bank branches in the District 39.72 percent
were working in the rural area, 29.44 percent 30.84 percent branches in semi-
urban and urban areas respectively.
it was observed that, in the year 2006 total advanced given by various
bank was Rs.325.05 thousand lakh among them Commercial banks share of was
47.62 percent,1.83 percent Regional Rural Banks and District Central
Cooperative Banks 50.55 percent respectively. While in the year 2014 the share
of Commercial Banks in total advances given to costumes of the District was
almost higher (i.e.72.15 percent),where Regional Rural Banks and District
Central Cooperative banks share was 3.57 percent and 24.28 percent
respectively. it was found that, in the study area in the year 2006 priority sector
landing was 214.36 thousand lakh among that the share of Commercial Banks
was almost higher compared to Regional Rural Ranks District Central
Cooperative Banks. While in the year 2014 total priority sector landing was Rs
979.25 thousands lakh with higher share of Commercial Banks, followed by
District Central Cooperative Banks and Regional Rural Ranks in the District.
It was found that, in the study area in the year 2006 the share of priority
sector lending was 66.86 percent, while it was raised to 81.23 percent in 2014.
Moreover priority sector lending given by Commercial Banks in the year 2006
was almost higher compared to District Central Cooperative Banks and Regional
Rural Banks. While in the year 2014 priority sector lending given by District
Central Cooperative Banks was almost higher, followed by Regional Rural Banks
and commercial banks.

88
 It was found that, in the study area total agriculture advanced by various
Banks was Rs.166.43 thousands lakhs in 2006 while in the year 2014 it was
590.85 thousand lakhs. The share of District Central Cooperative Banks in total
agricultural advances was almost higher compare to Commercial Banks and
Regional Rural Banks in the year of 2006. While in the year 2014 the share of
Commercial Banks in total agriculture advances was almost higher, followed by
District Central Cooperative Banks and Regional Rural Banks in the District.

89
 CHAPTER IV
ACCESS OF AGRICULTURE
CROP LOAN

90
 CHAPTER IV
ACCESS OF AGRICULTURE CROP LOAN
4.0 Introduction
4.1 Age Group of Farmers
4.2 Educational Status of the Farmers
4.3 Agricultural Training
4.4 Occupational Structure
4.5 Housing Facilities
4.6 Main Income Source
4.7 Annual Income
4.8 Land Holding
4. 9 Sources of Irrigation
4.10 Methods of Irrigation
4.11 Agriculture Insurance
4.12 Reasons for Not Taking Crop Insurance
4.13 Interest in Farming
4.14 Sell of Land
4.15 Causes of Land Selling
4.16 Status of Poverty
4.17 Demand of Crop Loan
4.18 Per Acre Demand of Crop Loan
4.19 Supply of Crop Loan
4.20 Per Acre Supply of Crop Loan
4.21 Demand -Supply Gap of Crop Loan
4.22 Adequacy of Loan Amount
4.23 Purpose of Loan

91
4.24 Rate of Interest on Crop Loan
4.25 Time for Crop Loan Sanction
4.26 Time Consuming Process in Loan Passing
4.27 Problems in Accessing Crop Loan
4.28 Loan History of the Farmers
4.29 Sources of Loan
4.30 Easy Repayment of Crop Loan
4.31 Conclusion

92
 CHAPTER IV
ACCESS OF AGRICULTURE CROP LOAN
4.0 Introduction
It is important to study the Access of Agriculture Crop Loan and
characteristics of sample farmers classifying in to different group according to
age, marital status, educational status, agriculture training, occupational
structure, family size, main income source of crop loan borrowers, annual
income etc. However the major emphasis of the study was given to examine
the characteristics of crop loan borrowers. Farmers who received the crop loan
and their association of crop loan with extend of adoption of important farm
practices.
4.1 Age Group of Farmers
Age of the farmers is a significant parameter to fix the involvement in
the economic activities. It is said that young farmers actively working in the
agriculture. Here an attempt has been made to analysis the age group of the
respondents. Taluka wise age of the farmers presented in the following table.
Table No.4.1
Age Wise Classification of the Farmers
Sr.No Age Mangalwedha Sangola Total
1 less than 20 7 23 30
[15.0]
2 21 to 40 21 39 60
[30.0]
3 41 to 60 40 27 67
[33.5]
4 above 61 32 11 43
[21.5]
Total 100 100 200
[100.0]
Source: Based on Primary Survey
Note: figures in parenthesis shows percentage to total

93
 Chart No. 4.1
Age Wise Classification of the Farmers

less than 20
above 61 15%
21.5%

21 to 40
30%

41 to 60
33.5%

The above table 4.1 shows the age wise classification of the farmers in
Mangalwedha and Sangola taluka. The 33.5 percent of the farmers was in the
age group of 41 to 60 years, followed by the age group of 21 to 40 years
(i.e.30percent). Its means a significant proportion of the farmers was in the age
group of 21 to 60 year, which indicate that, the farmers are youth and middle
aged, who are in economically active stage. This has implication for productivity
of the farmers.

4.2 Educational status of the farmers

The level of education has close affiliation with borrowing habit. The
level of education of the farmers and borrowing crop loan and cultivation.
Moreover agricultural development and loans utilization is directly related to
the educational level of the farmers. Educational level play vital role in various
agricultural practices. Table 4.2 shows the classification of farmers by the
educational status.

94
 Table No.4.2
Educational Status of the Farmers
Sr.No Education Mangalwedha Sangola Total
1 Illiterate 22 16 38
[19.0]
2 Primary 25 24 49
[24.5]
3 secondary 23 17 40
[20.0]
4 Higher Secondary 9 11 20
[10.0]
5 Graduate 9 19 28
[14.0]
6 Post Graduate 8 6 14
[7.0]
7 Other 4 7 11
(Bsc,Agri Diploma ) [5.5]
Total 100 100 200
[100.0]
Source: Based on Primary Survey
Note: figures in parenthesis shows percentage to total

It is clear from the table that 24.5 percent of farmers had completed
primary level education in the study area, followed by 20 percent farmers with
secondary education. Moreover important thing is that, 5.5 percent of the
farmers had taken agriculture related education. While only 7 percent of the
farmers had post graduate level education in the study area.
Chart No. 4.2
Educational Status of the Farmers

5.5%
7% 19% Illiterate
Primary
14% secondary
Higher Secondary
Graduate
Post Graduate
10% 24.5 %
Other

20%

95
4.3 Agricultural Training
Agricultural allied many training programs affect positively on
agriculture development and effective utilization of limited resources. Farmers'
training is providing at the local level through Krishi Vigyan Kendras, vocational
agricultural schools and field demos. These training classes may conducted on
exact topics like the use of fertilizers, water conservation, efficient water
management, pest control management and applications of new agriculture
technology. The new information that farmers gain through these training
sessions makes their daily farming activities much easier. It also leads to an
increase in agriculture productivity and bigger profits in the long run. The
following table 4.3 provide the status of agricultural training taken by the
farmers in study area.
Table No.4.3
Agricultural Training
Sr.No Agricultural Training Mangalwedha Sangola Total
1 Yes 33 42 75
[37.5]
2 No 67 58 125
[62.5]
Total 100 100 200
[100.0]
Source: Based on Primary Survey
Note: figures in parenthesis shares percentage to total

In the study it was observed that majority of the farmers (62.5 percent)
had not taken any types of agriculture training. Whereas only 37.5 percent of
farmers had taken agriculture training in the study area.
4.4 Occupational Structure

Simply language the work-related arrangement of a country refers to the

division of its work force involved in agriculture and allied activities and how

96
many of them are engaged in industrial and service sector can be known from
the occupational structure of the country.1Table 4.4 shows the classification of
crop borrowers on the basis of their occupational background. Out of 200
farmers 52.0 per cent of the farmers had agriculture as a main occupation,
followed by 28 percent farmers with agriculture and private job as a joint
occupation in the study area. Moreover the farmers who were doing agriculture
and self-employment are only 3.5 percent, while the same proportion was also
found about the farmers who were working as a trader in the study area.

Table No.4.4
Occupational Structure
Sr.No Occupational Structure Mangalwedha Sangola Total

1 Agriculture 49 55 104
[52.0]
2 Agri + Private Job 31 25 56
[28.0]
3 Agri + Government Job 17 9 26
[13.0]
4 Agri + Self-Employment 1 6 7
[3.5]
5 Agri + Trader 2 5 7
[3.5]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

1
http://www.economicsdiscussion.net/economics2/occupationalstructureandeconomicdevel
opment/2161(6.11.2016)

97
4.5 Housing facilities
Having own house is the major Infrastructural facilities for farmers.
Moreover the types of house show the status of the farmers. Table 4.5 shows
the housing status of the farmers in Mangalwedha and sangola taluka.
According to this table in study area most of the farmers (47.00 percent) had
pakka house followed by having kaccha house (27.5 percent). However 25.5
percent farmers were having living RCC type house in the study area.
Table No.4.5
Housing Facilities with the Farmers
Sr.No House Mangalwedha Sangola Total
1 Kaccha 31 24 55
[27.5]
2 Pakka 40 54 94
[47.0]
3 RCC 29 22 51
[25.5]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total
Chart No. 4.3
Housing Facilities

RCC Kaccha
25.5% 27.5%

Pakka
47%

98
4.6 Main Income Source
Table No 4.6 shows the main income source of the crop loan borrowers
in the Mangalwedha and sangola talukas of Solapur district. In the study area
65.0 percent of crop loan borrowers had main income source is the agriculture,
followed by government and private job (17.0 percent). Moreover only 3.5
percent of crop loan borrower’s main income source is self-employment next
to trading (11.5 percent).
Table No.4.6
Main Income Source of the Farmers
Sr.No Income Source Mangalwedha Sangola Total
1 Agriculture 64 66 130
[65.0]
2 Service 19 15 34
[17.0]
3 Trader 13 10 23
[11.5]
4 self-employment 4 9 13
[6.5]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total
Chart No.4.4
Main Income Source

Business
6.5%

Trader
11.5%

Service
17% Agriculture
65%

99
4.7 Annual Income
Income is a significant factor which determines the borrowing and
repayment capacity of the farmers. His annual average income of the
respondents from agriculture and other sources is analyzed in table. No 4.7.
Annual average income of the crop loan borrowers was Rs.74397. While the
farmers from sangola taluka having higher annual average income (Rs.76139)
than the farmers of Mangalwedha taluka (Rs 72655)
Table No.4.7
Annual Income of the Farmers
Sr.No Taluka Total farm income Average Farm Income (in
(in Rs) Rs)
1 Mangalwedha 7265500 72655
[48.83]
2 Sangola 7613900 76139
[51.17]
Total 14879400 148794
[100.00]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

4.8 Land Holding

The available land cultivated by owner himself is called the land
ownership. Land ownership makes incentive to adopt new technique of
production because owners can avail the benefits derived from agriculture
loans. Moreover Size of the holding clearly has a direct attitude on the extent
of generation and income and employment. Further, crop loans are easily
extended to large farmers who could offer high - valued land security.
Table 4.8 shows the land holding pattern in the study area. The average
land holding among the Sample respondent was 9.99 acres, moreover in
Mangalwedha taluka it was higher (10.14 acres) than the sangola taluka (9.84
acres). The farm size wise analysis shows that, the average size of land holding
with the big farmers was 21.05 acres, followed by medium size farmers (15.52

100
acres). While the marginal and small farmers had only 1.95 acres and 3.12 acres
of average land respectively in the study area.
Table No.4.8
Land Holding of the Farmers
(In acres)
Sr.No Farm Size Mangalwedha Sangola Total
1 Marginal 40 38 78
(below 2.50) [2.00] [1.9] [1.95]
2 Small 65 60 125
(2.51 to 5 ) [3.25] [3] [3.125]
3 Semi- Medium 163 160 323
5.01 to 10 [8.15] [8] [8.075]
4 Medium 320 301 621
(10.1 to 25) [16.00] [15.06] [15.525]
5 Big 425 416 841
(above 25.01) [21.25] [20.8] [21.025]
6 Total 1014 984 1998
[10.14] [9.84] [9.99]
Source: Based on Primary Survey.
Note: figures in parenthesis shows average size of land

4. 9 Sources of Irrigation
Water is very essential for plant’s growth, rainfall is the cheap and most
natural supply of water. Irrigation facilitates have play vital role in agriculture
production and productivity pattern determination.

The table 4.9 shows the sources of irrigation in the study area. There are
several sources of irrigation available for farmers in the study area, among them
lift irrigation, well, land tank, canal and Bore wells etc. were used by the farmers
in the study area.

101
 Table No.4.9
Source of Irrigation
Sr.No Way of Irrigation Mangalwedha Sangola Total
1 Lift Irrigation 16 6 22
[11.00]
2 Well 20 13 33
[16.50]
3 Land Tank 13 11 24
[12.00]
4 Canal 15 8 23
[11.50]
5 Bore Wells 15 34 49
[24.50]
6 No Source Of 21 28 49
Irrigation [24.50]
Total 100 100 200
[100.00]

Source: Based on Primary Survey.

Note: figures in parenthesis shows percentage to total
Chart No.4.5
Source of Irrigation

102
 Out of 200 farmers, 24.50 per cent of the farmers had bore well for
irrigation source, followed by well irrigation source (16.50 percent). While lift
irrigation as well as canal irrigation source is used with less proportion (11 and
11.50 percent respectively). Moreover 24.50 of farmers were not having any
types of source of irrigation in the study area.
4.10 Methods of Irrigation
Irrigation is the technique in which water is supplied to plants at regular
intervals for agriculture. It is used to assist in the growing of agricultural crops,
conservation of landscapes, and vegetation of disturbed soils in dry areas and
during periods of insufficient rainfall. Furthermore, irrigation also has a few
other uses in crop production, which include protecting plants against frost2,
suppressing weed growth in grain fields3 and preventing soil consolidation4.
An adequate water supply is important for crop growth. When rainfall is
not adequate, the crop must receive further water from irrigation. Various
methods can be used to supply irrigation water to the plants.
The table 4.10 shows the various methods of irrigation in the study area.
According to the table, of the total farmers used other types of methods 32.50
percent of the farmer’s using other types of method of irrigation, followed by
pipeline method (22.50 percent). However only 4 percent of the farmers were
using sprinkler method for irrigation, which helps to rise productivity of crop
with less proportion of water. There is a remarkable use of drip irrigation
method (i.e22 percent) in the study area.

2
Snyder, R. L.; MeloAbreu, J. P. (2005). "Frost protection: fundamentals, practice, and
economics" (PDF). Food and Agriculture Organization of the United Nations. ISSN 16848241.
3
Williams, J. F.; S. R. Roberts; J. E. Hill; S. C. Scardaci; G. Tibbits. "Managing Water for 'Weed'
Control in Rice". UC Davis, Department of Plant Sciences. Retrieved 20070314.
4
Snyder, R. L.; MeloAbreu, J. P. (2005). "Frost protection: fundamentals, practice, and
economics" (PDF) Food and Agriculture Organization of the United Nations. ISSN 16848241.

103
 Table No 4.10
Methods of irrigation
Sr.No Methods of irrigation Mangalwedha Sangola Total
1 Traditional/Surface 24 14 38
[19.00]
2 Pipeline 31 14 45
[22.50]
3 Drip 19 25 44
[22.00]
4 Sprinkler 2 6 8
[4.00]
5 Other Methods 24 41 65
[32.50]
Total 100 100 200
[100.00]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

Chart No.4.6
Methods of Irrigation

Other
32.50% Traditional/surface
19%

Sprinkler
4% pipeline
Drip 22.50%
22%

4.11 Agriculture insurance

Agriculture in India is extremely vulnerable to threats like droughts and
floods. It is crucial to keep the farmers from natural disasters and guarantee

104
their credit eligibility for the next season. For this purpose, the Government of
India announced many agricultural insurance schemes through the country.5
Agricultural production is fraught with threat and uncertainty state. One
of the consistent ways of mitigating of agriculture risk is through crop insurance.
Inappropriately, however, use of crop insurance is not inclusive spread in
Mangalwedha and sangola taluka. Table 4.11 shows that, only 38.0 percent of
the crop loan borrowers are covered by crop insurance scheme and the rests
are totally (62 percent) uncovered. Thus, in case of any calamities they are
driven to a distress situation.
Table No.4.11
Agriculture insurance
Sr.No Insurance Mangalwedha Sangola Total
1 Yes 47 29 76
[38.0]
2 No 53 71 124
[62.0]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total
4.12 Reasons for not taking up crop insurance
Table 4.12 shows the various reasons of farmers not covered in crop
insurance. According to the table one of the main causes for not taking up crop
insurance is lack of awareness (60.5 percent) among crop loan borrowers.
Whereas 19.4 percent farmers were not interested in crop insurance.
Additional 4.8 percent of the farmers were not able to pay premium of crop
insurance. Due to the official’s non-cooperation in crop insurance process 6.5
percent of the farmers were not interested in taking crop insurance.

5
https://en.wikipedia.org/wiki/Agricultural_insurance_in_India (download on the dated
14/06/2015)

105
 Table No.4.12
Reasons for Not Taking up Crop Insurance
Sr.No Reasons Mangalwedha Sangola Total
1 Lack of awareness 29 46 75
[60.5]
2 Not interested 11 13 24
[19.4]
3 Not cover of my crop 4 7 11
[8.9]
4 Unable to the premium 4 2 6
[4.8]
5 non-cooperation of officers 5 3 8
[6.5]
Total 53 71 124
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

Chart No.4.7
Reasons for Not Taking up Crop Insurance

4.8% 6.5%

8.9%

19.4 65.5% Not aware of the scheme

Not interested

Not cover of my crop

Not able to pay the premium

non-cooperation of office

4.13 Interest in farming

The NSS 59th round on the Situation Assessment Survey of Farmers,
2003 had exposed that, at all-India level, 60 percent of farmer households liked
farming as a profession. The remaining 40 percent were of the opinion that,
given a choice, they would take up some other career.6

6 NSS 59th round on the Situation Assessment Survey of Farmers, 2003

106
 The table 4.13 shows that, 45.0 percent of farmers like their farming
profession and other reaming 55.0 percent farmers were disliking.
Table No.4.13
Interest in farming
Sr.No Response Mangalwedha Sangola Total
1 Yes 46 44 90
[45.0]
2 No 54 56 110
[55.0]
Total 100 100 20
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

According to the reasons for liking farming as a profession? 39.6 per cent
of the farmers left feel a sense of traditional occupation in being a farmer,
followed by the reason of the proud to be a farmers (26.4 percent). While only
8.8 percent of the farmers like a farming due to good income source. Moreover
11 percent farmers were like farming due to good future to the farming.
Table No.4.14
Reason for Like Farming
Sr.No Reason Mangalwedha Sangola Total
1 Proud To Be A Farmer 10 14 24
[26.4]
2 Traditional Occupation 24 12 36
[39.6]
3 Good Social Status 5 8 13
[14.3]
4 Good Income 3 5 8
[8.8]
5 A Good Future 5 5 10
[11.0]
Total 46 44 90
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

107
 The reasons of the dislike farming is given in the table 4.15. according
to the table, 34.9 percent of farmers dislike farming due to no future in
farming, followed by Low social status and Income is not good (20.2 and 20.2
percent respectively). While only 7.3 percent of the farmers dislike farming
due to their education level. Also 17.4 percent farmers disliking due to
uncertainty and risk in farming in study area.
Table No.4.15
Reason of Dislike Farming
Sr.No Reason Mangalwedha Sangola Total

1 Lack Of Good Income 5 17 22

[20.2]
2 No Future In Farming 19 19 38
[34.9]
3 Low Social Status 19 3 22
[20.2]
4 Due To Highly Educated 4 4 8
[7.3]
5 Uncertainty And Risk 6 13 19
[17.4]
Total 53 56 110
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

4.14 Sell of Land

Table 4.16 shows sell of own land within last five year by the farmers in
study area. Out of 200 respondents 21.5 percent respondents reported that, to
some extent have selled out their own land during the last five year. Among the
talukas of study area there was a more number of farmers in sangola taluka
who have selled out their own land to some extent compare to Mangalwedha
taluka.

108
 Table No.4.16
Land sell
Sr.No Land sell Mangalwedha Sangola Total
1 Yes 18 25 43
[21.5]
2 No 82 75 157
[78.5]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

4.15 Causes of Land Selling

In the table 4.17 given the causes of selling of land in the study area
during last five year. The farmers who selled out their land during last five year,
the major reason behind it was found the Marriage of their Children’s (38.1
percent), followed by reason from agriculture Debt (35.7 percent). However 19
percent of the farmers stated the reason of the Poor financial condition. While
very less number of farmers who given a reason of property related dispute (4.8
percent) and business purpose (4.8 percent) behind selling of their own land
during last five year.
Table No.4.17
Causes of Land Selling
Sr.No Cause Mangalwedha Sangola Total
1 Poor Financial Condition 4 4 8 [19.0]

2 Agriculture Debt 8 7 15 [35.7]

3 Marriage Of The Childers 4 12 16 [38.1]

4 Property Disputed 1 1 2 [4.8]

5 Business 1 1 2 [4.8 ]

Total 18 25 43 [100.0]

Source: Based on Primary Survey.

Note: figures in parenthesis shows percentage to total

109
4.16 Status of Poverty
The status of the poverty of the farmers in the study given in the table
4.18. The table shows that, of the total 200 farmers 24.5 percent of the farmers
still living in the below poverty line. This result of farmers living under below
poverty line is very much closer to Indian economies below poverty line
percentage.
Table No.4.18
Status of Poverty
Sr.No Poverty Line Mangalwedha Sangola Total

1 Below Poverty Line 23 26 49

[24.5]
2 Above Poverty Line 77 74 151
[75.5]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

4.17 Demand of Crop Loan

Demand of agriculture crop loan depends on various factors like-nature
of farm and other farmers’ income, farm size, repaying capacity, timely supply
of credit and so on. It depends on both the farm and non-farm incomes.
The farm size wise aggregate demand of crop loan in the study area is
given in table no 4.19. According to the table, the average demand of crop loan
by farmers in the study area was Rs. 223775. However it was higher in
Mangalwedha taluka (Rs. 2, 38,100) compare to Sangola taluka (Rs 2, 09,450).
Moreover average demand of crop loan by the semi medium size farmers was
almost higher (Rs.2, 70,500), followed by medium size farmers (Rs.2, 63,250),
compared to other farm size in the study area. While there was very less

110
 demand of crop loan by the marginal size farmers (Rs.1,13,625) next by the
small farmers (Rs.2,09,750) among all the farm size.
Table No.4.19
Demand of crop loan
(In Rs)
Sr.No Size of Mangalwedha Sangola Total
land
Amount Average Amount Average Amount Average

1 Marginal 33,40,000 1,670,00 12,05,000 60,250 45,45,000 1,13,625

2 Small 45,90,000 2,29,500 38,00,000 1,90,000 8,39,0000 20,9,750

3 Semi 54,20,000 27,1,000 54,00,000 27,0,000 10,82,0000 2,70,500

Medium
4 Medium 51,50,000 2,57,500 53,80,000 2,69,000 10,53,0,000 2,63,250

5 Big 53,10,000 2,65,500 51,60,000 2,58,000 1,04,70,000 2,61,750

Total 2,38,10,000 2,38,100 2,09,45,000 2,09,450 4,47,55,000 2,23,775

Source: Based on Primary Survey.

4.18 Per Acre Demand of Crop Loan

Table No 4.20 shows the per acre demand of crop loan in the study area.
As per the table per acre demand of crop loan in the study area was Rs.22,
399.90. While the per acre demand of crop loan in Mangalwedha taluka was
higher (Rs.23, 481.26) than Sangola taluka (Rs 21,285.57). Farm size wise
analysis shows that, there was almost higher per acre demand of crop loan by
the small farmers (Rs.67, 120) followed by marginal farmers (Rs 58,269.23).
However on the other hand the big farm size farmers demanded almost less
crop loan is almost less (Rs.12449.50). Nextel by the medium size farmers (Rs
16956.52) compared to other farm size in the study area.

111
 Table No.4.20
Per Acres Demand of Crop Loan
(In Rs)
Sr.No Size of Land Mangalwedha Sangola Total
1 Marginal 83500 31710.53 58269.23

2 Small 70615.38 63333.33 67120

3 Semi Medium 33251.53 33750 33498.45

4 Medium 16093.75 17873 16956.52

5 Big 12494.12 12403.85 12449.50

Total 23481.26 21285.57 22399.90

Source: Based on Primary Survey.

4.19 Supply of Crop Loan

Table no 4.21 shows the Supply of crop loan by commercial banks in the
study area. As per table the commercial banks have distributed average crop
loan to the farmers was Rs 1, 65,870 in the study area. However there was not
much more difference in distribution of crop loan in Mangalwedha and sangola
taluka.

Moreover according to farm size wise distribution of crop loan in the

study area it was found that, the medium and big size farmers benefited highly
(Rs.2,13,875 and Rs.2,12,625 respectively) than other farm size farmers. While
the marginal farmers received very less average crop loan (Rs.67, 400), followed
by small farmers (Rs.1, 45,325) in the study area.

112
 Table No.4.21
Supply of Crop Loan
(In Rs)
Sr.No Size of Mangalwedha Sangola Total

Land Amount Average Amount Average Amount Average

1 Marginal 17,63,000 88150 9,33000 46650 26,96000 67400

2 Small 35,45,000 177250 22,68000 113400 58,13000 145325

3 Semi 33,45,000 167250 42,60000 213000 76,05000 190125

Medium
4 Medium 37,35,000 186750 48,20000 241000 85,55000 213875

5 Big 38,95,000 194750 46,10000 230500 85,05000 212625

Total 162,83,000 162830 168,91000 168910 331,74000 165870

Source: Based on Primary Survey.

4.20 Per Acre Supply of Crop Loan

Table no 4.22 shows the per acre distribution of crop loan by the
commercial banks in the study area. According to the table commercial banks
have distributed Rs.16, 603.60 per acres in a study area. However the per acre
crop loan distribution by commercial banks in sangola taluka was higher
(Rs.17165.65) than the Mangalwedha taluka (Rs.16058.18).

Moreover the farm size wise distribution of crop loan by commercial

banks in the study area found that, the small size farmers received higher crop
loan (Rs.46504), followed by marginal farmers(34564.10) in study area. While
the big size farmers received very less crop loan (Rs.10112.96), followed by
medium size farmers (Rs.13776.16) in the study area.

113
 Table No.4.22
Per Acres Supply of Crop Loan
Sr.No Size of Land Mangalwedha Sangola Total

1 Marginal 44075 24552.63 34564.10

2 Small 54538.45 37800 46504

3 Semi 20521.47 26625 23544.89

Medium

4 Medium 11671.87 16013.28 13776.16

5 Big 9164.71 11081.73 10112.96

Total 16058.18 17165.65 33223.83

Source: Based on Primary Survey.

4.21 Demand -Supply Gap of Crop Loan

Table No 4.23 shows gap between per acre demand and supply of crop
loan in the study area. The per acre gap in demand and supply of crop loan was
calculated simply as ….
Demand Supply Gap= Demand of crop loan - supply or distribution of
crop loan
The per acre demand supply gap of crop in the study area was -5796.3.
However it was higher in Mangalwedha taluka (Rs-7423.08) than sangola taluka
(Rs-4119.92). According to farm size the gap of demand and supply of crop loan
was almost higher at marginal farm size (Rs-23705.13), followed by small farm
(Rs-20616). Such gap was very less at big farm size (Rs-2336.54) followed by
medium farm size (Rs-3180.36) compared to other farm size in the study area.

114
 Table No.4.23
Demand Supply Gap
Sr.No Size Of Land Mangalwedha Sangola Total
1 Marginal 39425 7157.9 -23705.13
2 Small 16076.93 25533.33 -20616

3 Semi Medium 12730.06 7125 -9953.56

4 Medium 4421.88 1859.72 -3180.36

5 Big 3329.41 1322.12 -2336.54

Total 7423.08 4119.92 -57963

Source: Based on Primary Survey.

4.22 Adequacy of Loan Amount
The amount of agriculture loan sanctioned by the commercial banks
does not always match with the requirements of the farmer’s. Inadequate
amount of loan affects its proper utilization to a great extent, it either leads to
unproductive spending or compels the poor beneficiaries to fall into the
clutches of money lenders therefore it is required on the part of bank that the
beneficiaries are given adequate amount of loan to meet their requirement.
The table no 4.24 shows that out of the 63 percent farmers who have
availed the crop loan reported that the loan was inadequate. Whereas the
remaining 37 percent farmers reported that it was adequate.
Table No.4.24
Adequacy of Loan Amount
Sr.No Response Mangalwedha Sangola Total

1 Adequate 35 39 74
[37.00]
2 Inadequate 65 61 126
[63.00]
Total 100 100 200
[100.00]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

Chart No.4.8
115
 Adequacy of Loan Amount

Adequate
37%

Inadequate
63%

4.23 Purpose of Loan

One of the objective of research are to study the purpose of agriculture
loan taken by the framers in the study. Table 4.25 provides the relevant data on
the purpose of crop loan taken by respondents.
In the study area most of the farmers (i.e33.5 percent) were taken the
crop loan for the purpose of purchasing seeds, followed by the purpose of to
pay the charges of hired machinery (16.5 percent). Moreover 15.5 percent of
the farmers had taking crop loan for purchasing the Fertilizers. While 6 percent
of the farmers had taken of crop loan for to purchase pesticides and 9 percent
had for cultivation purpose.

116
 Table No.4.25
Purpose of crop loans
Sr.No Purpose of crop loans Mangalwedha Sangola Total

1 Purchase of Seeds 26 31 67
[33.5]
2 Purchase of Fertilizers 14 17 31
[15.5]
3 Hired Machinery Charges 17 16 33
[16.5]
4 Labour Charges 16 10 26
[13.0]
5 Land Cultivation 12 6 18
[9.0]
6 Purchase of Pesticides 8 4 12
[6.0]
7 Weedicides 7 6 13
[6.5]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

4.24 Rate of Interest on Crop Loan

Rate of interest is another important determinant factor to attract the

crop loan. In this connection the opinion of the farmers’ in the study area is

more important. The table 4.26 the rate of interest charged on crop loan by the

commercial banks in the study area. Of the 200 farmers 65 percent farmers

were reported that, banks are charging 7 percent rate of interest to their crop

loan. However 35 percent of the farmers were paying only 4 percent rate of

interest on their crop loan in study area.

117
 Table No.4.26
Interest Rate on Loans
Sr.No Rate of interest Mangalwedha Sangola Total
(In % )
1 4 1 69 70
[35.0]
2 7 99 31 130
[65.0]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

4.25 Time for Crop Loan Sanction

Timely availability of finance is very crucial in agricultural operations.
Right time, person, and purposes is important, while sanctioning the
commercial bank crop loan. The table 4.27 indicates the time taken to obtain
crop loan after applying in the study area. The commercial banks in sangola
taluka spending more time (average 19.4 days) in sanctioning the crop loan to
the farmers compared to Mangalwedha taluka (15.2 days) in the stud area.
However in the study area averagely 17.3 days required for to crop loan
sanction.
Table No.4.27
Time for Crop Loans Sanction
(In Average Days)
Sr.No Taluka Average days
1 Mangalwedha 15.2
2 Sangola 19.4
3 Average 17.3
Source: Based on Primary Survey.

118
4.26 Time Consuming Process in Loan Passing
Table No.4.28 shows the response on time consuming process in crop
loan passing in the study area. Of the 200 farmers 61.5 percent farmers
reported that there is a time consuming process in sanctioning the crop loan.
However only 38.5 percent of the farmers were not agree on time consuming
process for sanctioning the crop loan.
Table No.4.28
Time Consuming Process in Loan Passing
Sr.No Response Mangalwedha Sangola Total
1 Yes 69 54 123
[61.5]
2 No 31 46 77
[38.5]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

4.27 Problems in Accessing Crop Loan

Table 4.29 shows the major problems in accessing crop loan from
commercial banks in the study. It is clear from the table that, 56 percent of the
farmers says that, the period for loan Repayment is short, followed by the
problem of non-cooperation of bank office (23 percent). Moreover 20 percent
of the farmers says that, there is problem with getting no dues from other
banks. The time consuming long process in loan sanctioning (13 percent) and
the amount of loan is insufficient (16 percent) are also an important problem in
accessing the crop loan from commercial banks in the study area.

119
 Table No.4.29
Problems in Accessing Crop Loan
Sr.No Problems Mangalwedha Sangola Total
1 Long Procedure in Loan 15 11 26
Passing [13.0]
2 Repayment Time is Short 26 30 56
[28.0]
3 Bank Officials Are 25 21 46
Non-Cooperative [23.0]
4 No Dues From Other 19 21 40
Banks [20.0]
5 Amount of Loan Is 15 17 32
Not Sufficient [16.0]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

Chart No.4.9
Problems in Accessing Crop Loan
56

46

32
26

L ONG P R OC E D U R E R EP AYMENT TIME IS B A N K OF F I C I A L S A R E A M OU N T OF L O A N I S

S H OR T N ON - CO OP E R A T I V E N OT S U F F I C I E N T

120
4.28 Loan History of the Farmers
During the period of survey one important question was asked to
farmers that have you taken any loan within last five year. According to that
question table No 4.30 shows the resonance of the total sample farmers. Of
the 200 farmers 27.5 percent farmers reported that, they have taken loan twice
in last five year, followed by 20.5 percent farmers (three times). However 9
percent of the farmers have taken 6 time crop loan in last five year. It shows
the repaying capacity of those farmers is very strong than other. Moreover also
found that, the 10.5 percent of the farmers who have taken crop loan 5 times
in last five year. Another very important result arrived from the table that 18
percent of the farmers have taken crop loan only one a time within in last five
year in study area.
Table No.4.30
Loan History of Last Five Year
Sr.No Frequency Mangalwedha Sangola Total
1 1 time 23 13 36
[18.0]
2 2 time 28 27 55
[27.5]
3 3 time 26 15 41
[20.5]
4 4 time 17 12 29
[14.5]
5 5 time 6 15 21
[10.5]
6 6 time 0 18 18
[9.0]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

121
4.29 Sources of loan
The source of borrowing are classified into institutional and non-
institutional source. Institutional sources such are nationalized banks,
cooperative banks, regional rural banks, where non-institutional source are
moneylenders, traders and friends and landlords. According to table 4.31
money landers and commercial banks were played major role in providing crop
loans (each 16.5 percent) to the farmers, followed by cooperative banks (16
percent). Moreover friends and relative were also played important role (13.5
percent). However the landlord (9 percent), Micro finance (8.5), trader (6
percent) and other source (14 percent) were still important in providing loans
to the farmers in study area.
Table No.4.31
Sources of Loan
Sr.No Sources Mangalwedha Sangola Total
1 Nationalized banks 17 16 33
[16.5]
2 Cooperative banks 12 20 32
[16.0]
3 Relative and friends 14 13 27
[13.5]
4 Moneylenders 16 17 33
[16.5]
5 Landlords 10 8 18
[9.0]
6 Traders 8 4 12
[6.0]
7 Micro finance 12 5 17
[8.5]
8 Other 11 17 28
[14.0]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

122
 The table clears the picture that, the contribution of institutional sources
(i.e. nationalized banks, cooperative banks, regional rural banks and Micro
finance) in crop loan supply was less (i.e.4.6 percent)than the non-institutional
source(54 percent) in study area.
Chart No.4.10
Sources

Other

Micro finance

Traders

Landlords

Moneylenders

Relative and friends

Cooperative banks

Nationalized banks

0 5 10 15 20 25 30 35

4.30 Easy Repayment of Crop Loan

Table no 4.32 Shows the response of the farmers on easy repayment
process in the study area. Out of 200 sample 48.0 percent of the crop loan
borrowers have reported that, the repayment of crop loan is accessible,
Moreover 104(52.00 percent) of the farmers reported that, they have not
suitable repayment process of the crop loans in the study area.

123
 Table No.4.32
Easy Repayment of Crop Loan
Sr.No Response Mangalwedha Sangola Total

1 Yes 37 59 96
[48.0]
2 No 63 41 104
[52.0]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

4.31 Conclusion
It was observed that, in the study area farmers are youth and middle aged,
who are in their economically active stage. Moreover 24.5 percent of farmers
had completed primary level education in the study area, followed by 20
percent farmers with secondary education. Moreover important thing is that,
very less percent farmers had taken agriculture related education. Moreover In
the study majority of the farmers had not taken agriculture training. It was
observed that the sample farmers 52.0 per cent of the farmers had agriculture
as a main occupation, followed by 28 percent farmers with agriculture and
private job as a joint occupation in the study area.
In the study area during survey the average land holding among the sample
respondent was 9.99 acres, among that in Mangalwedha taluka it was higher in
the sangola taluka. Moreover in study area majority farmers had bore well for
irrigation source, followed by well irrigation source. While lift as well as canal
irrigation source is used with less proration. In the study area also farmers
were using different irrigation methods for crops such as pipeline method,
sprinkler method and drip irrigation methods in the study area. In the study
area only 38.0 percent of the crop loan borrowers are covered by crop

124
insurance scheme and the rests are totally uncovered. According to the
observation main causes for not taking up crop insurance is lack of awareness
among crop loan borrowers and farmers were not interested in crop insurance.
In the Mangalwedha and sangola talukas 24.5 percent of the farmers still living
in the below poverty line. This result of farmers living under below poverty line
is very much closer to Indian economies below poverty line percentage.
It was observed that, the average demand of crop loan in Mangalwedha
taluka more compare to sangola taluka. Moreover average demand of crop loan
by the semi medium size farmers was almost higher, followed by medium size
farmers, compared to other farm size in the study area. While there was very
less demand of crop loans by the marginal size farmers.
It was found that, the commercial banks have distributed average crop loan
to the farmers was Rs 165870 in the study area. However there was not much
more difference in distribution of crop loan in Mangalwedha and sangola
taluka. Moreover according to farm size wise distribution of crop loan in the
study area it was found that, medium and big size farmers benefited highly than
other farm size farmers. While the marginal farmers received very less average
crop loan in the study area. The commercial banks have distributed Rs.16603.60
per acres in a study area. However the per acre crop loan distribution by
commercial banks in sangola taluka was higher than the Mangalwedha taluka.
It was also observed that majority farmers who have availed the crop loan
reported that the loan was inadequate. Whereas the remaining farmers
reported that it was adequate. Moreover In the study area most of the farmer
were taken the crop loan for the purpose of purchasing seeds, followed by the
purpose of to pay the charges of hired machinery. Moreover same farmers
were had taken taking crop loan for purchasing the Fertilizers, for of pesticides
and for cultivation. Commercial banks in sangola taluka spending more time
average days in sanctioning the crop loan to farmers compared to
Mangalwedha taluka.

125
 Most the farmers in the study area facing may problems during the getting
of the crop loans from the commercial banks. Most the farmers says the period
for loan Repayment is short, followed by the problem of non-cooperation of
bank office, there is problem with getting no dues from other banks and The
time consuming long process in loan sanctioning moreover the amount of loan
is insufficient are also an important problem in accessing the crop loan from
commercial banks in the study area. 48.0 percent of the crop loan borrowers
have reported that crop loan are accessible, moreover 52.00 percent crop loan
borrowers have reported that they have not suitable repayment process in the
study area.

126
 CHAPTER V
EFFECTIVENESS OF
AGRICULTURAL
CROP LOANS

127
 CHAPTER V
EFFECTIVENESS OF AGRICULTURAL CROP LOANS
5.0 Introduction
5.1 Reinvestment in Agriculture
5.2 Crop Loan Repayment
5.3 Crop Loan Utilized For Main Purpose
5.4 Purpose Wise Utilization of Agriculture Loan
5.5 Purpose wise Average Utilization of Crop Loan
5.6 Impact on Cropping Pattern
5.7 Percent Share of Main Crops in Gross Cropped Area
5.8 Impact on Production Pattern
5.9 Impact on Crop Yield Pattern
5.10 Impact on Cost of Cultivation
5.11 Impact on Banking Habits
5.12 Impact on Access of Information
5.13 Impact on Consumption of Various Amenities
5.14 Impact on Modernization of Agriculture
5.15 Indebtedness
5.16 Source wise Amount of Debt
5.17 Source Wise Average Amount of Debt
5.18 Cause of Debt
5.19 Conclusion

128
 CHAPTER V
EFFECTIVENESS OF AGRICULTURAL CROP LOANS
5.0 Introduction
Effectiveness of agricultural loan means the proportional use of crop
loan for what purpose the loan was taken and its impact on cropping ,
production , yield pattern, modernization of agriculture, farmers repayment
capacity, capacity of reinvestment and consumption of social amenities .
Here in this chapter tried to find out the effectiveness/ impact of crop
loan in study area. To find out the effectiveness of agricultural loans, some
factors such as cropping pattern, production pattern, yield pattern, cost of
cultivation, modernization of agriculture, debt level, reinvestment from crop
loan output, banking habits, access to information and consumption of durable
goods were considered.
5.1 Reinvestment in Agriculture
The reinvestment of crop loan income is required for further
development of agriculture sector. Table No 5.1 shows that, the reinvestment
in agriculture after receiving farm income in the study area. Out of 200 samples
57.50 percent crop loan farmers had reinvested of their income in agriculture
while remained(42.50 percent) of the farmers had not invested their farm
income in agriculture.
Table 5.1
Reinvestment in Agriculture
Sr.No Reinvestment in Mangalwedha Sangola Total
Agriculture
1 Yes 58 57 115
[57.50]
2 No 42 43 85
[42.50]
3 Total 100 100 200
[100.00]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

129
 Chart No.5.1
Reinvestment in Agriculture

No
43%
Yes
57%

5.2 Crop Loan Repayment

Repayment of agricultural crop loan is mostly related to its effective
utilization. Use of credit for unproductive purpose crates in overdue to crop
loan and weakens of the financial institution. The success of crop loan
institutions, therefore, depends mostly on the extent of proper utilization of
crop loan supplied to the farmers. Repayment capacity is one of the crucial
aspect of credit analysis. The utilization of crop loan has a great influence upon
the Repayment capacity of the farmers. Out of the 200 farmers in the study
area 86 (43.00) percent farmers have fully repaid their loan instalment, within
given time by the banks. Where 72(36.00 percent) of the farmers have repaid
the loan partially. Thus totally 79 percent of the farmers had repaid their loan
fully or partially in the study area. In case of the remaining 42(21.00 percent)
farmers were found defaulter. Diversion of crop loan is be the major reason
behinds becoming Defaulter.

130
 Table 5.2
Crop Loan Repayment
Sr.No Loan Repayment Mangalwedha Sangola Total
1 Fully Paid 39 47 86
[43.00]
2 Partially Paid 39 33 72
[36.00]
3 Defaulter 22 20 42
[21.00]
4 Total 100 100 200
[100.00]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

Chart No.5.2
Crop Loan Repayment

Defaulter
21%
Fully paid
43%

Partially Paid
36%

Fully paid Partially Paid Defaulter

5.3 Crop Loan Utilized For Main Purpose

Utilization of crop loan is normally examined in the context of the
purpose for which the credit is advanced and the purpose for which it is actually
used. The difference between these two indicates the extent of miss-utilization

131
or diversion of credit. Thus the term 'utilization' signifies the use of funds in
partially or fully for the purposes for which the loan was originally sanctioned
Details of the loan utilization by the farmers covered under the study
is tabulated in table 5.3. Of the total 200 samples 48 percent of the farmers
have used the loan amount for what purpose they have taken loan like
purchase of seeds, fertilizers, meeting labour charges , and hire charges of the
agriculture machineries ect. Moreover 34.50 percent of the farmers who have
partially used their loans for what purpose they have taken it. While the
remaining 17.50 percent of the farmer’s had diverted the crop loans to other
purpose instead of for what purpose they have taken it .Farmers who have
diverted the loan amount and utilized it for many other urgent needs such as
meeting expenditure involved in emergency medical treatment, educational
purpose, consumption, meeting family and social obligations.
Table No 5.3
Loan Utilized For Main Purpose

Sr.No Utilized Mangalwedha Sangola Total

1 Full utilized 49 47 96
[48.00]
2 Partially utilized 31 38 69
[34.50]
3 Loan diverted 20 15 35
[17.50]
4 Total 100 100 200
[100.00]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

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 Chart No.5.3
Loan Utilized for Main Purpose
Loan diverted
17.50%

Full utilized
48%

Partially
utilized
34.50%

Size of Land full % Partially % loan % Total %

utilized utilized divert
Marginal 23.00 23.96 17.00 24.64 .00 .00 40.00 20.00
small 16.00 16.67 20.00 28.99 4.00 11.43 40.00 20.00
semi medium 25.00 26.04 10.00 14.49 5.00 14.29 40.00 20.00
medium 22.00 22.92 9.00 13.04 9.00 25.71 40.00 20.00
large 10.00 10.42 13.00 18.84 17.00 48.57 40.00 20.00
Total 96.00 100.00 69.00 100.00 35.00 100.00 200.00 100.00

Chi-square tests.

Statistic Value df Asymp. Sig. (2-

tailed)
Pearson Chi-Square 37.86 8 .000
Likelihood Ratio 41.71 8 .000
Linear-by-Linear 15.41 1 .000
Association
N of Valid Cases 200

133
df=(R-1*C-1)
df=(3-1*5-1)
df=(2*4)
df=(8)
Chi-square test is 15.5
Computed chi-square test value =37.86
Table vale < Computed
H0
H1
Hypothesis statement
“Marginal and small farmers class size of land holding and effective utilization
of amount of crop loan are associated”
Test= Chi-square test
H0= “Marginal and small farmers class size of land holding and effective
utilization of amount of crop loan are NOT associated”
H1=“Marginal and small farmers class size of land holding and effective
utilization of amount of crop loan are associated”
We reject HO and Accept H1
Result
Chi-square test was applied to find whether there is significant
relationship class size of land holding and effective utilization of amount of
crop loan.
Since the calculated chi-square value, 37.86 is higher than the table
value of 15.5 at 5 % level of significance, we reject the null hypothesis. Hence,
it is inferred that there is significant relationship between class size of land
holding and effective utilization of amount of crop loan.

134
5.4 Purpose Wise Utilization of Agricultural Crop Loan
In the study area farmers have utilized agriculture crop loan for both
agriculture and non-agriculture purpose among there for payment of labour
charges, land cultivation, intern cultivation, and replantation at the time of flier
of crop, moreover loan utilized for buying of Agriculture inputs such as HYV
Seeds, Chemical Fertilizers, Pest Management and electricity bill payment etc.
items considered as an agriculture purpose. However examples of non-
agriculture Unproductive purpose such as Current Consumption, Education,
Marriage, Social family function and Home Goods etc
Table no 5.4 shows that utilization agriculture crop loan in in the study
area. Of the total crop loan amount 62.39 percent of the amount was used for
agriculture purpose and remained (i.e.37.61 percent) was used for non-
agriculture purpose. Moreover the among use of crop loan amount for
agriculture purpose the share of repayment of loan purpose was dominant
10.11 percent, followed by purchase of HYV seeds(6.62 percent), replantation
expenditure (6.41 percent), purchases of chemical fertilizers (6.14 percent).
However the crop loan amount was used in very less proportion (i.e.1.59
percent) on adoption of new agriculture technology in study area. While among
the use of crop loan amount for non-agriculture purpose the share of
expenditure on marriage ceremony was almost higher (14.44 percent),
followed by the expenditure on current consumption of family (9.55 percent)
and having home goods (i.e.7.41 percent) in the study area. Where the
expenditure out of crop loan a social functions was almost less (0.70 percent).
The table also revealed that, in the sangola taluka use of crop loan was more
effective (i.e.74.66 percent) than Mangalwedha taluka (52.52 percent).
Moreover the expenditure on repayment of the loan (11.31 percent) and
purchase of HYV Seeds (6.37 percent) was almost higher compare to other
among agriculture purpose in Mangalwedha taluka while the expenditure on
replantation (10.76 percent) and repayment of (8.62 percent) was almost

135
 higher compare to other purpose among the agriculture purpose in sangola
taluka.
Table No 5.4
Purpose Wise Utilization of Crop Loan
Sr.No Utilization Mangalwedha Sangola Total
Amount % of Amount % of Amount % of
share share share
1 Labour Charges 7,35,868 5.60 6,83,456 6.46 14,19,324 5.99
2 Mechanization 6,05,433 4.61 5,80,112 5.49 11,85,545 5.00
3 Cultivation 5,20,540 3.96 4,32,668 4.09 9,53,208 4.02
4 Internal Cultivation 2,69,448 2.05 2,203,63 2.08 4,89,811 2.07
5 Replantation 3,82,508 2.91 11,37,345 10.76 15,19,853 6.41
6 Irrigation Facility 5,48,818 4.18 8,41,636 7.96 13,90,454 5.86
7 HYV Seeds 8,37,504 6.37 7,32,629 6.93 15,70,133 6.62
8 Chemical Fertilizers 6,76,890 5.15 7,79,664 7.37 14,56,554 6.14
9 Pest Management 2,39,224 1.82 7,68,722 7.27 10,07,946 4.25
10 Repayment of Loan 14,86,714 11.31 9,11,736 8.62 23,98,450 10.11
11 Electricity Bill 4,33,070 3.30 5,92,125 5.60 10,25,195 4.32
12 New Agro 1,65,510 1.26 2,12,476 2.01 1.59
37,7,986
Technology
Agriculture 69,01,527 52.52 78,92,932 74.66 62.39
14,79,4459
purpose
13 Current 1,59,8121 12.16 6,65,405 6.29 9.55
22,63,526
Consumption
14 Education 4,66,100 3.55 8,42,772 7.97 13,08,872 5.52
15 Marriage 2,78,0784 21.16 6,43,986 6.09 34,24,770 14.44
16 Social Program 1,19,600 0.91 45,278 0.43 16,4,878 0.70
17 Home Goods 12,74,675 9.70 4,81,416 4.55 17,56,091 7.41
Non-Agro 62,39,280 47.48 26,78,857 25.34 37.61
Utilization 89,18,137
Total 1,31,40,807 100.00 1,05,71,789 100.00 2,37,12,596 100.00

Sources: Source: Based on Primary Survey.

Moreover among the non-agriculture purpose use of crop loan in

Mangalwedha taluka expenditure on marriage ceremony (21.16 percent) and
expenditure on current family expenditure (12.16 percent) was dominant
136
 where in sangola taluka it was education purpose (7.97 percent) and current
family expenditure (6.29 percent).
5.5 Purpose wise average utilization of crop loan

However regarding the effectiveness of crop loan the purpose wise an

average utilization of crop loan having great importance. According to this data
given table no 5.5.
Table No 5.5
Purpose Wise Average Utilization of Crop Loan
Sr.No Utilization of crop loan Mangalwedha Sangola Total
Average No Average No Average No
1 Labour Charges 8974 82 10679 64 9826.5 146
2 Mechanization 20877 29 22312 26 21594.5 55
3 Cultivation 7655 68 5693 76 6674 144
4 Internal Cultivation 4899 55 3289 67 4094 122
5 Replantation 10066 38 18645 61 14355.5 99
6 Irrigation Facility 9302 59 12377 68 10839.5 127
7 HYV Seeds 11632 72 17869 41 14750.5 113
8 Chemical Fertilizers 9810 69 10536 74 10173 143
9 Pest Management 7036 34 12602 61 9819 95
10 Repayment of Loan 25633 58 12663 72 19148 130
11 Electricity Bill 6985 62 7895 75 7440 137
12 New Agro Technology 3678 45 9658 22 6668 67
Agriculture purpose 126547 55.92 144218 58.92 135382.5 114.83
13 Current Consumption 25367 63 10237 65 17802 128
14 Education 7900 59 10668 79 9284 138
15 Marriage 38622 72 16947 38 27784.5 110
16 Social Program 2300 52 1366 53 1833 105
17 Home Goods 19025 67 12344 39 15684.5 106
Non-Agro Utilization 93214 62.60 51562 54.80 72388 117.40
Total 219761 59.26 195780 56.86 207770.5 116.12
Sources: Source: Based on Primary Survey.

137
 The table show that, the crop average use of crop loan for agriculture
purpose was higher Rs.135382.50 than non-agriculture purpose Rs 72388 in the
study area. However among the agriculture purpose the average expenditure
on Mechanization was found dominant (i.e.Rs.21594.50), followed by
expenditure on HYV seeds (Rs.14750.50) and on replantation
(14355.50).moreover among the non-agriculture purpose the average the
average expenditure on marriage ceremony was almost higher
(i.e.Rs.27784.50), followed by the expenditure on family consumption
(Rs.17802).among the agriculture purpose very less average amount was used
on eternal cultivation (4094) and on cultivation (Rs.6674). While among the
non-agriculture purpose it was social family functions (Rs.1833) and education
(Rs.9284).
The taluka wise analysis shows that, the average utilization of crop loan
on non-agriculture purpose was higher in Mangalwedha taluka (Rs.93214) ,
where it was higher an agriculture purpose in sangola taluka (Rs.144218)
Chart No.5.5
Average Utilization of crop loan by various purpose
30000 160
Average amount No of farmers
140
25000
120
20000
100

15000 80

60
10000
40
5000
20

0 0

138
5.6 Impact on Cropping Pattern
To find out the effectiveness of crop loan with respect to cropping
pattern is more important. Generally farmers were taking crop loans for to
modernize the farming in some extent. However modernization of agriculture
takes place from changes in cropping pattern. Keeping in mind this view here
effort has been made to find out the impact of crop loan on cropping pattern in
study area. Moreover the cropping pattern would decide on the short term
credit requirement and also on crop income. For this purpose before and after
the crop loan the data regarding area under various crops was collected from
the respondents.
According to the table 5.6 after availing a crop loan to the farmers in
study area, the area under sugarcane was increased very highly (133.14
percent), followed by the area under wheat crop (95.95 percent). Moreover the
area under maize and Groundnut was also increased by 62.56 and 16.86
percent respectively. The area under oilseeds (16.86 percent), sunflower (14.70
percent), cotton (2.33 percent) and all Vegetable (33.33 percent) also raised
after having a crop loan in study area.
However the area under food grain crops declined by 27.65 percent after
having a crop loan in study area. Among the food grain crops the area under
Jawar declined highly (54.75 percent) followed by the area under Bajara (44.93
percent). Moreover the area under mug (39.85 percent) Udid (33.77 percent),
gram (22.07 percent) and Tur (21.79 percent) also declined after having a crop
loan by the farmers in study area.

139
 Table 5.6
Impact on Cropping Pattern
(Area in Acers)
Sr.No Crops Mangalwedha Sangola Total
Before After Before After Before After
(% change) (% change) (% change)
1 Jawar 462.23 250.3 530.55 198.95 992.78 449.25
-45.85 -62.50 -54.75
2 Bajara 125.8 56.2 160.2 101.3 286 157.5
-55.33 -36.77 -44.93
3 Wheat 75.66 102.3 50.65 145.2 126.31 247.5
35.21 186.67 95.95
4 Mize 100.5 166.75 85.25 135.2 185.75 301.95
65.92 58.59 62.56
5 Total Cereals 764.19 575.55 826.65 580.65 1590.84 1156.2
-24.68 -29.76 -27.32
6 Tur 60.2 45.3 35.25 29.35 95.45 74.65
-24.75 -16.74 -21.79
7 Mug 65.5 35.65 30.85 22.3 96.35 57.95
-45.57 -27.71 -39.85
8 Udid 60 40.2 30.2 19.54 90.2 59.74
-33.00 -35.30 -33.77
9 Gram 66.3 35.21 49.85 55.3 116.15 90.51
-46.89 10.93 -22.07
10 Total Pluses 252 156.36 146.15 126.49 398.15 282.85
-37.95 -13.45 -28.96
11 Total Food 1016.19 731.91 972.8 707.14 1988.99 1439.05
Grains -27.98 -27.31 -27.65
12 Cotton 70.54 30.5 109.55 153.6 180.09 184.1
-56.76 40.21 2.23
13 Sugarcane 100.36 260.55 87.5 139.85 187.86 400.4
159.62 59.83 113.14
14 Cash Crop 291.05 293.45 584.5
170.9 70.30 197.05 48.92 367.95 58.85
15 Groundnut 55.2 76.9 42 46 97.2 122.9
39.31 9.52 26.44
16 Sunflower 45 41.3 30.5 45.3 75.5 86.6
-8.22 48.52 14.70
17 Safflower 6 3 4 1 10 4
-50.00 -75.00 -60.00
18 Oilseeds 106.2 121.2 76.5 92.3 182.7 213.5
14.12 20.65 16.86
19 Vegetable 25 30 11 18 36 48
20.00 63.64 33.33
20 Gross cropped 1174.16 1110.89 2285.05
area 1318.29 -10.93 1257.35 -11.65 2575.64 -11.28

Source: Based on Primary Survey.

140
 According to the table 5.6 after availing a crop loan to the farmers in
Mangalwedha taluka , the area under sugarcane was increased very highly
(159.62 percent), followed by the area under maize crop (65.92 percent).
Moreover the area under Wheat and Groundnut was also increased by 35.21
and 39.31 percent respectively. The area under oilseeds (14.12 percent) and all
Vegetable (20.00 percent) also raised after having a crop loan in study area.
However the area under food grain crops declined by 27.98 percent after
having a crop loan in Mangalwedha taluka. Among the food grain crops the area
under Bajara declined highly (55.33 percent) followed by the area under Jawar
(45.85 percent). Moreover the area under Gram (46.89 percent) Udid (33.00
percent) and Tur (24.75 percent) also declined after having a crop loan by the
farmers in Mangalwedha taluka.

Chart No.5.4
Impact on Cropping Pattern
1800 120
1600 100

1400 80

Percent of change
60
1200
Area in Acres

40
1000
20
800
0
600
-20
400 -40
200 -60
0 -80

crops

Before After % change

This analysis clearly shows that, the availability of crop loan to the
farmers will helps to divert the cropping pattern from traditional crops to
commercial crops.

141
 According to the table 5.6 after availing a crop loan to the farmers in
sangola taluka, the area under wheat was increased very highly (186.67
percent), followed by the area under sugarcane crop (59.83 percent). Moreover
the area under maize and cotton was also increased by 58.59 and 40.21 percent
respectively. The area under oilseeds (20.65 percent), sunflower (48.52
percent) Gram (10.93 percent) and all Vegetable (63.64 percent) also raised
after having a crop loan in sangola taluka.

However the area under food grain crops declined by 29.76 percent after
having a crop loan in study area. Among the food grain crops the area under
Jawar declined highly (62.50 percent) followed by the area under Bajara (36.77
percent). Moreover the area under Udid (35.30 percent) mug (27.71 percent)
and Tur (16.74 percent) also declined after having a crop loan by the farmers in
sangola taluka.

5.7 Percent Share of Main Crops in Gross Cropped Area

The important crops cultivated in the study area were Jawar, Bajara,
wheat, maize, Tur, gram, sugarcane, Cotton and Groundnut. The table no 5.7
shows the percentage share of main crops to gross cropped area in the study
area. The cropping pattern in study area was dominated by food grains crops.
These crops occupied nearly 62.97 percent of the total cropped area.
Moreover among the foodgrians the area under cereals was 50.59
percent, followed by pulses (12.38 percent. However the area under Sugarcane
having second place (17.52 percent) after Jawar among the all types of crops in
study area. After the sugarcane other than foodgrians crops cotton (8.06
percent) and Groundnut (5.38 percent) were cultivated majorly in study area.
Table 5.7
Percent Share of Main Crops in the Study Area
Sr.No Crops Before After
1 Jawar 38.54 19.66
2 Bajara 11.10 6.89
3 Wheat 4.90 10.83

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 4 Maize 7.21 13.21
5 Total Cereals 61.75 50.59
6 Tur 3.71 3.27
7 Mug 3.74 2.54
8 Udid 3.50 2.61
9 Gram 4.51 3.96
10 Total pluses 15.46 12.38
11 Food grains 77.21 62.97
12 cotton 6.99 8.06
13 Sugarcane 7.29 17.52
14 Cash Crops 14.29 26.87
15 Groundnut 3.77 5.38
16 Sunflower 2.93 3.79
17 Safflower 0.39 0.18
18 Total oilseeds 7.09 9.35
19 Vegetable 1.40 2.10
20 Gross cropped area 100.00 100.00
Source: Based on Primary Survey.
Chart No.5.5
Percent Share of Main Crops
90

80

70

60
Percent of share

50

40

30

20

10

Before After

143
5.8 Impact on Production Pattern
The agriculture production refers to the total production or output
produced of two kinds of crops viz. food crops and non-food crops. Food crops
consist of cereals such as rice, wheat, Jawar etc and pulses such gram, moong
etc. The non-food crops consist of oilseeds, sugarcane, cotton, jute etc. In India
food-crops are grown over nearly three-fourths of gross sown area.1
Table no 5.8 shows the production pattern of selective crops in the study
area. Total production of the food grains crops after having crop loan was
7596.35 quintals. The share of maize production was almost higher (45.50
percent) compere to other food crops, followed by wheat production (21.46
percent).
Moreover the share of Jawar which was historically dominant crop in the
Solapur district is at the third number in production (16.68 percent) in the study
area. Among the pulses the production of gram was found dominant (3.48
percent) share, followed by Tur crop production (2.11 percent). However
among the non-food crops sugarcane crops is having lions share (19498
quintals), followed by Groundnut production (1137 quintals). There was found
a remarkable share of all type vegetables (13295 quintals) and oilseeds crop
production (1355 quintals) in the study area. Also the share of cotton and
Sunflower was found important in study area.
To find the impact of crop loan on production of various crops
percentage change has been calculated. The percentage change in production
level shows that, the production of foodgrians raised by 7.58 percent after
having a crop loan in the study area. Moreover among the all crops sugarcane
production was raised highly (151.47 percent), followed by wheat production
(108.06 percent). The production of maize (83.39 percent) and Groundnut
(34.20 percent) also increased remarkably. There was also increased in

1
http://sol.du.ac.in/Economics/Study Material-2/Tuesday, 14 June 2016, 3:50 PM

144
 production level of cotton (9.53 percent) and all oilseeds (4.85 percent) to some
extent after availing a crop loan to the farmers in study area.
Table 5.8
Impact on Production Pattern
Sr.No Crops Mangalwedha Sangola Total
Before After % change Before After % change Before After % change
1 Jawar 1386.69 750 -45.91 1326.37 517.27 -61.00 2713.06 1267.27 -53.29
[18.77] [2.92] [19.69] [6.77] [38.43] [16.68]
2 Bajara 314.5 224 -28.77 480.6 303.9 -36.77 795.1 527.9 -33.60
[4.26] [2.96] [7.14] [3.98] [11.26] [6.95]
3 Wheat 378.3 613.8 62.25 405.2 1016.4 150.84 783.5 1630.2 108.06
[5.12] [8.12] [6.02] [13.31] [11.10] [21.46]
4 Mize 1100.55 1834.25 66.66 784.3 1622.4 106.86 1884.85 3456.65 83.39
[14.90] [24.27] [11.65] [21.25] [26.70] [45.50]
5 Cereals 3180.04 3422.05 7.61 2996.47 3459.97 15.47 6176.51 6882.02 11.42
[43.05] [45.28] [44.49] [45.32] [87.48] [90.60]
6 Tur 90.03 72.48 -19.49 102.75 88.05 -14.31 192.78 160.53 -16.72
[1.22] [0.96] [1.53] [1.15] [2.73] [2.11]
7 Mug 160.75 106.95 -33.46 70.95 64.67 -8.85 231.7 171.62 -25.93
[2.18] [4.42] [1.05] [0.85] [3.28] [2.26]
8 Udid 90 78.62 -12.64 87.58 39.08 -55.38 177.58 117.7 -33.72
[1.22] [1.04] [1.30] [0.51] [2.82] [1.55]
9 Gram 172.38 98.58 -42.81 109.67 165.9 51.27 282.05 264.48 -6.22
[2.33] [1.30] [41.63] [2.17] [3.99] [3.48]
10 Pluses 513.16 356.63 -30.50 370.95 357.7 -3.57 884.11 714.33 -19.20
[6.95] [4.72] [5.51] [4.68] [12.52] [9.40]
11 Total Food 3693.2 3778.68 2.31 3367.42 3817.67 13.37 7060.62 7596.35 7.58
Grains [100.00] [100.00] [100.00] [100.00] [100.00] [100.00]
12 Cotton 201 163 -18.90 166 239 43.98 367 402 9.53
[4.26] [2.29] [4.48] [3.30] [4.52] [2.02]
13 Sugarcane 4516.2 12506.4 176.92 3237.5 6992.5 115.98 7753.7 19498.9 151.47
[95.74] [98.71] [95.12] [96.70] [95.48] [97.98]
14 Total Cash 4717.2 12669.4 168.58 3403.5 7231.5 112.47 8120.7 19900.9 145.06
Crop [100.00] [100.00] [100.00] [100.00] [100.00] [100.00]
15 Groundnut 469.2 769 63.89 378 368 -2.65 847.2 1137 34.20
[64.79] [79.98] [66.55] [93.52] [65.56] [83.91]
16 Sunflower 225 173.5 -22.88 168 15.5 -90.77 393 189 -51.90
[31.07] [18.04] [29.58] [3.94] [30.41] [13.95]
17 Safflower 30 19 -36.66 22 10 -54.55 52 29 -44.23
[1.14] [1.98] [3.87] [2.54] [4.02] [2.14]
18 Oilseeds 724.2 961.5 32.76 568 393.5 -30.72 1292.2 1355 4.85
[100.00] [100.00] [100.00] [100.00] [100.00] [100.00]
19 Vegetable 6250 7895 26.32 2750 5400 96.36 9000 13295 47.72
Source: Based on Primary Survey.
Note: 1. production of foodgrians, oilseeds and vegetables in quintals
2. Production of cash crop in tons

145
 However on the other side after having crop loans there was a decline
production level of some food crops as well as non-food crops. Among the food
crops the production of Jawar declined highly by 53.29 percent, followed Udid
(33.72 percent). Moreover among the non-food crops there was higher decline
in Sunflower production (51.90 percent), followed by Safflower (44.23 percent)
after having a crop loans by the farmers in the study area.
The above the Table also shows the production pattern of selective crops
in the Mangalwedha taluka. Total production of the food grains crops after
having crop loan was 3778.68 quintals. The share of maize production was
almost higher (24.27 percent) compere to other food crops, followed by wheat
production (8.12 percent). Among the pulses the production of mug was found
dominant (4.42 percent) share, followed by gram crop production (1.30
percent). However among the non-food crops sugarcane crops is having lions
share (98.71 percent). There was found a remarkable share of all type
vegetables (7895 quintals) and oilseeds crop production (961.5 quintals) in the
Mangalwedha taluka.
The above the Table also shows the production pattern of selective crops
in the sangola taluka. Total production of the food grains crops after having crop
loan was 3817.67 quintals. The share of maize production was almost higher
(21.25 percent) compere to other food crops, followed by wheat production
(13.31 percent). Among the pulses the production of gram was found dominant
(2.17 percent) share, followed by Tur crop production (1.15 percent). However
among the non-food crops sugarcane crops is having lions share (96.70
percent). There was found a remarkable share of all type vegetables (5400
quintals) and oilseeds crop production (393.5 quintals) in the sangola taluka.
To find the impact of crop loan on production of various crops
percentage change has been calculated. The percentage change in production
level shows that, the production of foodgrians raised by 2.31 and 13.37 percent
after having a crop loan in the Mangalwedha and sangola taluka. Moreover

146
among the all crops sugarcane production was raised highly (176.92 and 115.98
percent), followed by maize production (66.66 percent) in Mangalwedha taluka
and 106.86 percent in sangola taluka. There was also increased in production
level of wheat (150.84 percent) and vegetables (96.36 percent) to some extent
after availing a crop loan to the farmers in sangola taluka.

Chart No.5.6
Impact Production Pattern

25000 200
Before

After 150
20000
% change
out put in QT/Tons

100
15000

% change
50
10000
0

5000
-50
Crops
0 -100

5.9 Impact on Crop Yield Pattern

Agricultural crop loan is considered as an important input for the
improvement of the agricultural productivity. The extension in the agricultural
productivity can be considered as a tool for evaluating the effectiveness of the
agricultural loans.2 Productivity shows the output per unit of input. After a
discussion on production pattern, it is an important to examine the yield level
of various crops in the study area, because yield is influenced by the crop loan.
Table no 5.9 shows the of yield principle crops in the study area.

2
John K. Mathew,(2010), A Study On Agricultural Financing By Commercial Banks In Kerala,
Mahatma Gandhi University, PhD Thesis

147
 It was observed from the table that the yield of food grain crops in study
area was raised from 3.54 quintals per acre to 5.27 quintal during the period of
the crop loan, which registered highly 48.87 percent improvement. Among the
cereal crops, yield of Bajara increased by 20.50, followed by maize (12.85
percent) and wheat (6.13 percent). The Yield of cereals too increased by 53.35
percent. Moreover the yield of total pulses increased by 13.51 percent, among
pulses the yield of mug crop increased highly by 23.33 percent, followed by
gram (20.66 percent), and Tur (6.97 percent). Moreover the position of cash
crops showed the increasing trend. Among the cash crop the yield of sugarcane
increased almost highly (178.98 percent), followed by cotton yield (7.39
percent). However the yield of Safflower and oil seeds crops declined by 58.08
percent and 10.33 percent respectively after having crop loans to the famers in
study area.
Table 5.9
Impact on Crops Yield
Sr.No Crops Mangalwedha Sangola Total
Before After % change Before After % change Before After % change
1 Jawar 3 3 0 2.5 2.6 4.00 2.73 2.82 3.30
2 Bajara 2.5 3.99 59.60 3 3 0.00 2.78 3.35 20.50
3 wheat 5 6 20.00 8 7 -12.50 6.2 6.58 6.13
4 Mize 10.95 11 0.46 9.2 12 30.43 10.14 11.44 12.82
5 cereals 4.16 5.95 43.03 3.62 5.95 64.36 3.88 5.95 53.35
6 Tur 1.5 1.6 6.67 2.91 3 3.09 2.01 2.15 6.97
7 Mug 2.45 3 22.45 2.29 2.82 23.14 2.4 2.96 23.33
8 Udid 1.5 1.96 30.67 2.9 2 -31.03 1.96 1.97 0.51
9 other pluses 2.6 2.8 7.69 2.2 3 36.36 2.42 2.92 20.66
10 Pluses 2.04 2.28 11.76 2.53 2.82 11.46 2.22 2.52 13.51
11 total food 3.63 5.16 42.15 2.46 5.39 119.11 3.54 5.27 48.87
12 cotton 2.85 5.34 87.37 1.51 1.55 2.65 2.03 2.18 7.39
13 Sugarcane 45 48 6.67 37 50 35.14 41.27 48.69 17.98
14 Groundnut 8.5 10 17.65 9 8 -11.11 8.71 9.25 6.20
15 Sunflower 5 4.2 -16.00 5.5 0.34 -93.82 5.2 2.18 -58.08
16 Safflower 5 6.33 26.60 5.5 10 81.82 5.2 7.25 39.42
17 Oilseeds 6.82 7.93 16.28 7.42 4.26 -42.59 7.07 6.34 -10.33
18 Vegetable 250 263.17 5.27 250 300 20.00 250 276.97 10.79
Source: Based on Primary Survey.

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5.10 Impact on Cost of cultivation
Table no 5.10 shows the agriculture cost of cultivation of crops in the
study area. It was observed from the table that, the cultivation cost of all crops
increased during crop loan period, due to changes in Labour market and
increase minimum ages also agricultural inputs prices increase.
Table 5.10
Impact Cost of cultivation
(In Rs/Acres)
Sr.No Crops Before After % change
1 Jawar 6455 9146 41.69

2 Bajara 8515 10166 19.39

3 Wheat 13022 14563 11.83

4 Maize 10502 10968 4.44

5 Total Cereals 9624 11211 16.49

6 Tur 8202 8439 2.89

7 Mug 9586 11468 19.63

8 Udid 8915 9489 6.44

9 Gram 10552 11232 6.44

10 Total Pulses 9314 10157 9.05

11 Total Foodgrians 14126 15762 11.58

12 Cotton 17650 23711 34.34

13 Sugarcane 44210 61637 39.42

14 Total Cash Crops 53035 73492 38.57

15 Groundnut 18161 20906 15.11

16 Sunflower 9842 10990 11.66

17 Safflower 5978 6999 17.08

18 Total Oilseeds 11327 12965 14.46

19 Vegetable 8783 10729 22.16

Source: Based on Primary Survey.

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 Per acres cost of cultivation of foodgrians was Rs. 15762. In the study
area cost of cultivation of foodgrians was increased by 11.58 percent. Moreover
cost of cultivation of total cereals was raised by 16.49 percent and total Pules
by 9.05 percent. Cost of cultivation of Jawar was increased highly higher (41.69
percent) increased during loan period, followed by sugarcane (39.42 percent).
5.11 Impact on Banking Habits
In this section an attempt has been made to examine the banking
habits of the farmers in the study area after having crop loan. Banking habits
means having bank account in any types of banks, regular savings in various
forms with banks, having Kisan Credit Card, ATM credit, access of internet
banking etc. with the farmers.
Table 5.11
Banking Habits
Sr.No Banking Habits Before After %change
1 Bank Account 55 200 263.64
[27.5] [100]
2 Saving 110 38 -65.45
[55] [19]
3 Kisan Credit Card 87 190 49.43
[43.5] [95]
4 ATM 65 124 90.77
[32.5] [62]
5 e- banking 60 125 108.33
[30] 62.5
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage of each Banking Habits to total
sample 200

According to table 5.12 all the farmers in study area were having bank
account (100 percent), followed by having Kisan credit card 190 farmers (95
percent). Moreover 62 percent of the farmers were having an ATM card for

150
their banking transaction. There was 125 farmers (62.5 percent) who were
using internet banking services in the study area. However presently only 38(19
percent) farmers were maintained their saving habit.
The impact of crop loan on banking habit of the farmers in the study area
shows that, there was 263.64 percent growth in bank account holding farmers,
followed by 108.33 percent increase in internet banking services access.
Moreover there was 90.77 percent and 49.43 percent growth in ATM cards and
Kisan credit card holding farmers in study area. However the saving habit of the
farmers in study area was decline by 64.45 percent after availing the crop loans.
Chart No.5.7
Banking Habits
250 Before
After
200

150
Number

100

50

0
Bank Account Saving KCC ATM e- banking
Banking Habits

5.12 Impact on Access of Information

Here an attempt has been made to examine the ways to
access of information to the farmers in the study area. Access of information
related to agriculture and allied sector on climate change, prices of agriculture
commodity, new trends in marketing and storage of agriculture commodities,
recent technology for cultivation etc. we’re having more importance in the
development of agriculture. In this context impact of crop loans on access of
information is given in following table 5.13.

151
 It reveals from the table that, out of 200 sample respondents 68.5
percent of the farmers getting information from internet, followed Kisan call
center (61 percent). The agriculture related newspaper also providing
information to 60 percent farmers in the study area. Moreover the source of
magazine (56.5 percent) and radio (56.5 percent) were also playing important
role in providing some information to the farmers.
Table 5.12
Impact on Access of Information
Sr.no Ways Before After %change
1 Use of internet 34 137 302.94
[37] [68.5]
2 Agro news Paper 23 120 421.74
[11.5] [60]
3 Agro Magazine 73 113 54.79
[36.5] [56.5]
4 Kisan Call Centre 35 122 248.57
[17.5] [61]
5 Kisan SMS 27 74 174.07
[13.5] [37]
6 Television 61 114 86.89
[30.5] [57]
7 Radio 62 113 82.26
[31] [56.5]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage of each Ways to total sample 200

The availability of crop loan and its impact on access of information

shows that, after having crop loan the access of information from agriculture
related newspapers was raised highly (421.74 percent), followed by use of
internet (302.94 percent). Moreover use of Kisan call center and Kisan SMS
service was increased by 248.57 percent and 174.02 percent respectively.
However the use of agriculture related magazine (54.79 percent) and television
(86.89 percent) for accessing information on agriculture raised very slowed
than other services in the study area.

152
 Chart No.5.8
Impact on access of information

Radio

T.V After Before

Kisan SMS

Kisan Call Centre

Agro Magazine

Agro Paper

Use of internet

0 20 40 60 80 100 120 140 160

5.13 Impact on Consumption of Various Amenities

The effective utilization of loan certainly reflects in the income levels of
the facilities at home. The change in facilities at home can be considered as a
tool for evaluating the impact of the loan. Farmers enjoying various amenities
is to be an indicator of higher standard of living. Impact of crop loan on
consumption of various amenities in study area presented in Table 5.14
According to the table 96.5 percent of the farmers in the study area were having
phone or mobile phone, followed by availability of television (59.57 percent).
Moreover 58 percent of the farmers were having gas connection. Furthermore
20.5 percent of the farmers had a computer.
However the use of computer by the farmers in the study area increased
very highly (720 percent) after having a crop loan, followed by the use of phone
or mobile phone (262.26 percent). The use of television and gas connection was
raised 116.36 percent and 46.84 percent respectively in the study area.

153
 Table 5.13
Consumption of Various Amenities
Sr.No Amenities Before After %change
1 Television 55 119 116.36
[27.7] [59.5]
2 Phone/Mobile 53 192 262.26
Phone [26.5] [96.5]
3 Cycle 23 33 43.48
[11.5] [13.5]
4 Bicycle 38 27 -28.95
[19] [66]
5 Electricity 96 132 37.50
[48] [66]
6 Gas Connection 79 116 46.84
[39.5] [58]
7 Computer 5 41 720.00
[2.5] [20.5]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage of each Home goods to total sample
200
Chart No.5.9
Impact on Consumption of Various Amenities

250
Before

200 After

150

100

50

0
TV phone Cycle two viler Electricity Gas Computer
cycle

5.14 Impact on Modernization of Agriculture

Even though the crop loans were short term loans, it helps to raise the
agricultural income via productivity. On the other hand increasing income will
always help to modernization of agriculture. In this connection table 5.10 shows

154
the impact of crop loan on modernization of agriculture in study area. The use
of chemical fertilizers, HYV Seeds, pesticides, Bio fertilizers and crop insurance
are the indicators considered for modernization of agriculture.
Table 5.14
Impact on Modernization of Agriculture
Sr.No Modernization of agriculture Before After %change
1 Chemical fertilizers 25 106 324.00
[12.5] [53]
2 HYV Seeds 57 101 77.19
[28.5] [50.5]
3 pesticides 27 63 133.33
[13.5] [31.5]
4 Bio fertilizers 40 74 85.00
[20] [37]
5 Agriculture insurance 70 106 51.43
[35] [53]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage of each way to total sample 200

According to the above table 53 percent of the farmers were using

chemical fertilizers and taking in crop insurance in the study area, followed by
use of high yielding seeds (50.57 percent). The use pesticides (31.51 percent)
and bio fertilizers (37 percent) was comparatively less in study area.

Chart No.5.10
Modernization of Agriculture

Agriculture insurance

Bio fertilizers

Pesticides

HYV Seeds

Chemical fertilizers

After Before 0 20 40 60 80 100 120

After availing crop loan to the farmers the use chemical fertilizers was
increased very highly (324 percent), followed by the use of pesticides (133.33

155
percent). Moreover the use of Bio fertilizers (85 percent) and high yielding
seeds (77.19 percent) was also increased remarkably. While the use crop
insurance by the farmers raised slowly (51.43 percent) than other factors of
agriculture modernization in study area.

5.15 Status of Indebtedness of the Farmers

Rural indebtedness as well as agriculture indebtedness is major obstacle
in agriculture development. Despite decent extension of banking network in the
study area, after nationalization of banks, and growth of institutional credit to
agriculture the problem of indebtedness is still continuing. Rural indebtedness
has remained an important issue in the district.
While effective use of credit could lead to usage of adequate and quality
inputs and better productivity, high indebtedness could indicate stagnation,
economic decline and problems in repayment. Indebtedness is that level of
debt burden for the individual, which offsets the process of credit recycling,
impedes production and productivity and forces a person into an intractable
vicious debt trap3.
Table 5. 15
Indebtedness
Sr.No Indebt Mangalwedha Sangola Total

1 Yes 51 63 114
[57.0]
2 No 49 37 86
[43.0]
Total 100 100 200
[100.0]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

3
The working group on ‘Outreach of Institutional Finance and Cooperative Reforms’, 11th
Five-Year Plan in the Report of the Sub-Group on Indebtedness of Farmers under the
chairmansipship of the vice chairman, state planning board, Punjab.

156
 The table 5.15 shows the number of farmers were still in debt in study
area. Out of 200 respondents 114(57.00 percent) respondents reported that,
they were living in debt. However in sangola taluka more number of farmers
(63) were still in debt compare to Mangalwedha taluka (51 farmers).
5.16 Source wise Debt Amount
Table 5.16 show the source wise debt level in study area. the source of
debt from the farmers in study area were cooperative banks, nationalized banks
and private banks are institutional source and Relatives and friends,
moneylenders, traders, landlords and microfinance this are non-institutional.
Table 5.16 shows the contribution of Institutional and non-Institutional sources
of loan in indebtedness of farmers in study area.
Table 5.16
Source Wise Debt
(In Rs.)
Sr.No Source Of Debt Mangalwedha Sangola Total
1 Cooperative 158981 199801.4 358782.4
Banks [7.89] [9.48] [8.70]
2 Nationalized 438921 179441 618362
Banks [21.78] [8.52] [15.00]
3 Private Banks 238973 185433 424406
[11.86] [8.80] [10.30]
Institutional 836875 564675.4 1401550.4
[41.53] [26.80] [34.00]
4 Relative and 102003 99892 201895
Friends [5.06] [4.74] [4.90]
5 Moneylenders 115301 128678 243979
[5.72] [6.11] [5.92]
6 Trader 203000 197600 400600
[10.07] [9.38] [9.72]
7 Landlords 299480 966082 1265562
[14.86] [45.85] [30.70]
8 Micro finance 458300 150032 608332
[22.74] [7.12] [14.76]
Non 1178084 1542284 2720368
Institutional [58.47] [73.20] [66.00]
Total 2014959 2106959.4 4121918.4
[100.00] [100.00] [100.00]
Source: Based on Primary Survey
Note: figures in parenthesis shows percentage to total

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 According to the table Total debt amount of farmer in study was Rs.

4121918.4 of which 34 percent was from institutional source and rest of 66

percent from non-institutional source. Among the all sources the share debt

from landlords was dominant (30.70 percent), followed by nationalized banks

(15 percent) and micro finance (14.76 percent)

Furthermore traditionally dominant source of debt i.e. moneylenders

was having only 7.92 percent share in total debt. However there is large scope

to the nationalized, cooperative banks and private banks in providing debt to

the farmers for to replacement the dominancy of non-institutional source in

study area.

5.17 Source Wise Average Amount of Debt

The average amount of debt is having great importance rather than

aggregate amount. The table 5.17 provide data on average debt amount

in study area. The above the table shows that the average amount of debt in

study area was Rs.36157.17. however the average amount of debt from

institutional sources was greater (Rs.39425.62) than intuitional sources

(Rs.31853.41) in study area. Moreover the particular sources the average

amount of debt from landlords was almost higher (Rs.97350.92), followed by

micro finance (Rs.60833.2) and nationalized banks (Rs.56214.72). While

amount very less average amount of debt from the moneylenders

(Rs.15248.68) and relatives and friends (Rs.16824.58) was found in study area.

158
 Table 5.17
Source Wise Average Amount of Debt
(In Rs)
Sr.No Source of Mangalwedha Sangola Total
Debt Amount Average Amount Average Amount Average
of Debt [No of of Debt [No of of Debt [No of
Farmers] Farmers] Farmers]
1 Cooperative 158981 19872.625 199801.4 18163.72 358782.4 18883.28
Banks [8] 11] [19]
2 Nationalized 438921 146307 179441 22430.12 618362 56214.72
Banks [3] [8] [11]
3 Private Banks 238973 59743.25 185433 18543.3 424406 30314.71
[4] [10] [14]
1 to Institutional 836875 55791.67 564675.4 19471.56 1401550.4 31853.41
3 [15] [29] [44]
4 Relative and 102003 9273 99892 99892 201895 16824.58
Friends [11] [1] [12]
5 Moneylenders 115301 16471.57 128678 14297.55 243979 15248.68
[7] [9] [16]
6 Trader 203000 22555.56 197600 19760 400600 21084.21
[9] [10] [19]
7 Landlords 299480 37435 966082 193216.4 1265562 97350.92
[8] [5] [13]
8 Micro finance 458300 458300 150032 16670.22 608332 60833.2
[1] [9] [10]
4 to Non 1178084 32724.83 1542284 45361.29 2720368 39425.62
8 Institutional [36] [34] [69]
1 to Total 2014959 39509 2106959.4 33443.8 4121918.4 36157.17
8 [51] [63] [114]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

5.18 Cause of Debt

Table No 5.18 shows the casus of debt the farmers in the study area.
According to the table (12.28 percent) farmers had given a cause of family
expenditure and education for their indebtedness, followed by agriculture
purpose loans had high input prices (11.40 percent respectively). Moreover the
over expenditure on social family functions and high rate of interest (i.e.9.65
percent respectively).were also found important causes behinds indebtedness

159
of the farmers. While the failure of crop (4.39 percent) and purchases of gold
(5.26 percent) are the less important causes of debt in study area.
Table 5. 18
Causes of Debt
Sr.No Causes of Debt Mangalwedha Sangola Total
Percent
1 High input prices 5 8 13
[11.40]
2 Faille of crop 1 4 5
[4.39]
3 Low production and 5 5 10
productivity [8.77]
4 Lower prices 4 4 8
[7.02]
5 Family expenditure 5 9 14
[12.28]
6 Over expenditure on 4 7 11
social activity [9.65]
7 Higher rate of interest 5 6 11
[9.65]
8 Purchase of gold 2 4 6
[5.26]
9 Medical Cost 2 7 9
[7.89]
10 Education 10 4 14
[12.28]
11 Agriculture Debt 8 5 13
[11.40]
Total 51 63 114
[100.00]
Source: Based on Primary Survey.
Note: figures in parenthesis shows percentage to total

5.19 Conclusion
The reinvestment in agriculture after receiving farm income in the study
area was 57.50 percent crop loan borrowers farmers had reinvested of their
income in agriculture while remained of the farmers had not invested their farm
income in agriculture. The sample farmers in the study area 79 percent of the
farmers had repaid their loan fully or partially in the study area. In case of the

160
remaining only 21.00 percent farmers were found. Diversion of crop loan is be
the major reason becoming Defaulter. Moreover in the study only 48 percent
of the farmers have used the crop loan amount for the specified purposes for
what purpose they have taken loan like purchase of seeds, fertilizers, meeting
labour charges cost , and hire charges of the agriculture machineries ect.
Moreover While 34.50 percent of the farmers who have partially used their
loans for what purpose they have taken it and remaining 17.50 percent of the
farmer’s had diverted the loans to other purpose instead of for what purpose
they have taken it.
In the study area moreover 65.17 percent of the crop loan was used for
agriculture purpose and remained 34.84 percent was used for non-agriculture
purpose. Moreover the use of crop loan for agriculture purpose the share of
mechanization purpose was dominant. Moreover in the sangola taluka crop
loan was use more effectively then Mangalwedha taluka, overall study area
65.17 agriculture crop loan were effectively use. Means that effectiveness of
agriculture loan the study area more than 65 percent.
It was observed that, the after availing a crop loan to the farmers in study
area, the area under sugarcane was increased very highly, followed by the area
under wheat crop. Moreover the area under maize and Groundnut was also
increased.
Moreover fund positive impact on the cropping pattern in study area was
dominated by food grains crops. These crops occupied nearly 62.97 percent of
the total cropped area. Moreover among the foodgrians the area under cereals
was 50.59 percent, followed by 12.38 percent pluses. However the area under
Sugarcane having second place after Jawar among the all types of crops in study
area. The share of maize production was almost higher compere to other food
crops, followed by wheat production. Moreover the share of Jawar which was
historical dominant crop in the Solapur district is at the third number in
production in the study area. Among the pulses the production of gram was

161
found dominant share, followed by Tur crop production. However among the
non-food crops sugarcane crops is having lions share, followed by Groundnut
production. However on the other side after having crop loans there was a
decline production level of some food crops as was as in non-food crops. Among
the food crops the production of Jawar declined highly by 53.29 percent,
followed Udid. Moreover among the non-food crops there was higher decline
in Sunflower production, followed by Safflower after having a crop loans by the
farmers in the study area.
In the study area the yield of food grain crops in study area was raised
during the period of the crop loan, which registered 48.87 percent
improvement. Among the cereal crops, yield of Bajara increased by 20.50,
followed by maize (12.85 percent) and wheat (6.13 percent). The Yield of
cereals too increased by 53.35 percent. Moreover in the study area yield of total
pulses increased by 13.51 percent, among pulses the yield of mug increased by
23.33 percent, followed by gram (20.66 percent), and Tur (6.97 percent).
Moreover the position of cash crops showed the increasing trend. Among the
cash crop the yield of sugarcane increased almost highly (178.98 percent),
followed by cotton yield (7.39 percent).
It was observed that, per acres cost of cultivation of foodgrians was Rs.
15762. In the study area cost of cultivation of foodgrians was increased 11.58
percent moreover cost of cultivation of total cereals was raised 16.49 percent
and total Pules 9.05 percent. Cost of cultivation of Jawar was higher 41.69
percent increased during loan period. Followed by sugarcane 39.42 percent.
Moreover in the study area all farmers were having bank account,
followed by having Kisan credit card 65 percent farmers. Moreover 62 percent
of the farmers were having an ATM card for their banking transaction. There
was 62.5 percent farmers who were using internet banking services in the study
area. It was also found there was 263.64 percent growth in bank account holder
farmers, followed by 108.33 percent increase in internet banking services

162
access. Moreover there was 90.77 percent and 49.43 percent growth in ATM
cards and Kisan credit card holder farmers in study area. However the saving
habit of the farmers in study area was decline after availing the crop loans. It
was observed that, farmers getting information from internet, Kisan call center.
The agriculture related new paper also providing information to farmers in the
study area. Moreover the source of magazine and radio were also playing
important role in providing some information to the farmers.
In the study area majority farmers in the study area were having phone
or mobile phone, followed by availability of television. Moreover 58 percent of
the farmers were having gas connection. Furthermore 20.5 percent of the
farmers has a computer. However the use of computer by the farmers in the
study area increased very highly after having a crop loan, followed by the use
of phone or mobile phone. The use of television and gas connection was also
raised in the study area.
Presently in study area 53 percent of the farmers were using chemical
fertilizers and taking in crop insurance, followed by use of high yielding seeds.
The use pesticides and bio fertilizers was comparatively less in study area.
Moreover after availing crop loan to the farmers the use chemical fertilizers
was increased very highly, followed by the use of pesticides.

163
 CHAPTER VI
FINDINGS, SUGGESTIONS
AND CONCLUSIONS

164
 CHAPTER VI
FINDINGS, SUGGESTIONS AND CONCLUSIONS

Agricultural Crop Loan is seen as a powerful tool in promoting economic

development with equity and social justice and more mainly to increase
agricultural production and increase the standard of living of farmers in Solapur
district. That is why loan to agriculture sector has continuously commanded
special attention in terms of both policy issues and institution building.
Approximately there are two sources of credit institutional and non-
institutional. Here in the study attempt has been made To examine the growth
of agriculture and agriculture finance in Solapur district, To study the purpose
of agriculture crop loan taken by the farmers in study area, To study the access
of agriculture crop loans in the study area, To study the effectiveness of
agriculture crop loans taken by the farmers study area, To find the problems
and suggest some solutions on effectiveness of agriculture crop loans to the
study area.
For this purpose selected Mangalwedha and Sangola talukas of the
Solapur district. From each taluka five villages selected for the study. Moreover
from each village 20 farmers were selected as respondents that is total 200
farmers were interviewed with the help of pretested scheduled. The collected
data was processed and tabulated by using MS excel software of the computer.
Findings as per research object are fallows
1. To examine the growth of agriculture and agriculture finance in Solapur
district.
2. To study the purpose of agriculture crop loan taken by the farmers in
study area.
3. To study the access of agriculture crop loans in the study area.
4. To study the effectiveness of agriculture crop loans taken by the farmers
study area.

165
 5. To suggest some solutions on effectiveness of agriculture crop loans in
the study area.
Findings of the study
1. It was observed that, in the study area the under forest was increased by
10.65 percent during 2000-03 to 2010-13. The cropping intensity in the
District was declined by 3.37 percent.
2. It was found that, the area under food grain crops was 69.24 percent
among the food grain Jawar crop occupied highest area (i.e.51.70
percent) followed by wheat crop (4.95 percent) in the year of 2010-13.
Moreover among the pulses gram crop occupied highest area (i.e.3.75
percent) than other pulses.
3. According to output pattern in the study are of the total cereals, output
of Jawar was commanding and next came maize. These two crops
together comprised 74.05 percent of food grins production of the
District. Besides Jawar, maize and wheat also produced and its share
13.73 percent of the food grains production. Pluses were relatively less
important, sharing only 8.60 percent of total food grains production of
the District. Gram contributed 5.21 percent of the pulses output.
4. It was observed that, yields of Groundnut (1639.66 kg) maize (1281 kg),
wheat (1181.67 kg) and Jawar (1065.33 kg) found in study area. Among
the food grain crops, maize has occupied first rank in the District with
yield of 1281 kg. Per hector and then come the Wheat. Moreover, it was
observed that during 2000-03 to 2010-13, rice, Bajara, Jawar and wheat
have shown negative change. While remaining all the crops have showed
the positive change in the District. In case of cotton it has registered the
increase of 107.79 percent, followed by maize (51.52 percent) in yield in
the District. The yield of food grains crops increased by 17.13, where the
growth in yield of cereals was 17.73 percent.

166
5. It was observed that, the share in supplying of seeds by public sector
declined marginally, while the share of private sector was increased the
period during 2005 to 2013 in Solapur District. Total seed supply in the
District was 12.77 thousand qt in the year 2005, which raised up to 49.97
thousand qt in 2013.
6. It was found that, electricity consumption for agricultural purpose was
12300 kg/WH in 2000-01. It was raised to 216930 kh/wh in 2012-13 in
the Solapur District. The trends of electricity consumption for
agricultural purpose in the District is upward.
7. It was found that in the study area in year of 2010-11 there are higher
number of marginal farmers (35.46 percent), followed by small farmers
(31.87 percent), having 129616 hect (i.e.10.28 percent) and 305392 hect
(24.23 percent) of land respectively. At the same time 6097 farmers
(i.e.0.91 percent) were in a big size holding (i.e.7.15 percent) in the
District.
8. It was found that, the bank branches were expanding in Solapur District
during the period for 2000-01 to 2013-2014. The number of bank
branches in 2000-01 was only 440, now in 2013-14 it was 507.
9. It was also found that, In the Solapur District various banks were working
in the rural semi-urban and urban area. In the year 2014 the total
number of public sector bank branches in the District was 214, among
them 85 (39.72 percent) were working in the rural area, where 63(29.44
percent ) and 66(30.84 percent) branches in semi-urban and urban areas
respectively.
10. it was observed that, in the year 2006 total advanced given by
commercial banks, regional rural bank and District central cooperative
bank was Rs.325.05 thousand lakh among them Commercial banks share
of was 47.62 percent,1.83 percent Regional Rural Banks and District
Central Cooperative Banks 50.55 percent respectively. While in the year

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 2014 the share of Commercial Banks in total advances given to costumes
of the District was almost higher (i.e.72.15 percent),where Regional
Rural Banks and District Central Cooperative banks share was 3.57
percent and 24.28 percent respectively.
11. it was found that, in the study area in the year 2006 priority sector
landing was 214.36 thousand lakh among that the share of Commercial
Banks was almost higher (i.e.49.78 percent), compared to Regional Rural
Ranks (i.e.2.46) District Central Cooperative Banks (i.e.47.76 percent).
While in the year 2014 total priority sector landing was Rs 979.25
thousands lakh with higher share of Commercial Banks (65.94 percent),
followed by District Central Cooperative Banks (29.89 percent) and
Regional Rural Ranks (4.18 percent) in the District.
12. It was found that, in the study area in the year 2006 the share of priority
sector lending was 66.86 percent, while it was raised to 81.23 percent in
2014. Moreover priority sector lending given by Commercial Banks in
the year 2006 was almost higher (i.e. 70.33) compared to District Central
Cooperative Banks (i.e.70.21) and Regional Rural Banks (i.e.11.30). While
in the year 2014 priority sector lending given by District Central
Cooperative Banks was almost higher (i.e100.00 percent), followed by
Regional Rural Banks (95.13 percent) and commercial banks (74.23
percent).
13. It was found that, in the study area total agriculture advanced by
Commercial Banks, Regional Rural Banks and District Central
Cooperative Banks was Rs.166.43 thousands lakhs in 2006 while in the
year 2014 it was 590.85 thousand lakhs. The share of District Central
Cooperative Banks in total agricultural advances was almost higher
(i.e.62.29) compare to Commercial Banks (34.83 percent) and Regional
Rural Banks (2.88 percent) in the year of 2006.While in the year 2014 the
share of Commercial Banks in total agriculture advances was almost

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 higher (i.e.72.15 percent), followed by District Central Cooperative
Banks (22.22 percent) and Regional Rural Banks (5.63 percent) in the
District.
14. It was observed that the 33.5 percent of the farmers was in the age group
of 41 to 60 years, followed by the age group of 21 to 40 years
(i.e.30percent) its means a significant proportion of the farmers was
middle aged, who are in their economically active stage. Moreover 24.5
percent of farmers had completed primary level education in the study
area, followed by 20 percent farmers with secondary education.
Moreover important thing is that, 5.5 percent of the farmers had taken
agriculture related education. In the study it was observed that majority
of the farmers (62.5 percent) had not taken any types of agriculture
training. Whereas only 37.5 percent of farmers had taken agriculture
training in the study area.
15. It was observed that the sample farmers 52.0 per cent of the farmers
had agriculture as a main occupation, followed by 28 percent farmers
with agriculture and private job as a joint occupation in the study area.
Moreover the farmers who were doing agriculture and self-employment
are only 3.5 percent.
16. It was observed in study area during survey the average land holding
among the sample respondent was 9.99 acres, among that in
Mangalwedha taluka it was higher 10.14 acres in the sangola taluka (9.84
acres). The farm size analysis shows that the average size of land holding
with the big farmers was 21.05 acres, followed by medium size farmers
(15.52 acres). While the marginal and small farmers had only 1.95 acres
and 3.12 acres of average land respectively in the study area.
17. It was observed in study area during survey sample farmers, 24.50 per
cent of the farmers had bore well for irrigation source, followed by well
irrigation source (16.50 percent). While lift as well as canal irrigation

169
 source is used with less proration 11 and 11.50 percent respectively.
Moreover 24.50 of farmers not having any types of source of irrigation
in the study area.
18. It was observed during research survey, of the total farmers used other
types of methods 32.50 percent of the farmer’s irrigation, and followed
by pipeline method (22.50 percent). However only 4 percent of the
farmers were using sprinkler method for irrigation, which helps to rise
productivity of crop with less proportion of water. There is a remarkable
use of drip irrigation methods (22 percent) in the study area.
19. It was also found that, only 38.0 percent of the crop loan borrowers are
covered by crop insurance scheme and the rests are totally uncovered.
Thus, in case of any calamities they are driven to a distress situation.
However, the various reasons of farmers not in crop insurance.
According to the observation main causes for not taking up crop
insurance is lack of awareness (60.5 percent) among crop loan
borrowers. Whereas 19.4 percent farmers were not interested in crop
insurance.
20. It was found that, the 45.0 percent of farmers like their farming
profession and other reaming 55.0 percent farmers were disliking.
Moreover, what are their reasons for liking farming as a profession?
Among those who told they like farming 39.6 per cent feel a sense of
traditional occupation in being a farmer, followed by the reason of the
proud to be a farmers (26.4 percent). While only 8.8 percent of the
farmers like a farming due to good income source. Moreover 11 percent
farmers were like farming due to good future to the farming.
21. It was found that, the sample farmers 21.5 percent respondents
reported that, to some extent have selled out their own land during the
last five year. Among the talukas of study area there was a more number
of farmers in sangola taluka who have selled out their land to some

170
 extent compare to Mangalwedha taluka. However, the farmers of the
study area, who selled out their land during last five year, the major
reason behind it was found the Marriage of their Childers (38.1 percent)
followed by cause from agriculture Debt 35.7 percent. However 19
percent of the farmers stated the reason of the Poor financial condition.
While very less number of farmers who give a reason of property related
dispute (4.8 percent) and business purpose (4.8 percent) behind selling
of their land during last five year.
22. It was observed that, sample farmers 24.5 percent of the farmers still
living in the below poverty line. It very much closer to Indian economies
below poverty line percentage.
23. It was observed that, the average demand of crop loan by farmers in the
study area was Rs. 223775. However it was more in Mangalwedha taluka
(Rs. 238100) compare to sangola taluka (Rs 209450). Moreover average
demand of crop loan by the semi medium size farmers was almost higher
(Rs.270500), followed by medium size farmers (Rs.263250), compared to
other farm size in the study area. While there was very less demand of
crop Rs 113625 by the marginal size farmers (Rs.113625) next by the
small farmers (Rs.209750) among all the farm size.
24. It was found that, the commercial banks have distributed average crop
loan to the farmers was Rs 165870 in the study area. However there was
not much more difference in distribution of crop loan in Mangalwedha
and sangola taluka. Moreover according to farm size wise distribution
of crop loan in the study area it was found that, medium and big size
farmers benefited highly (Rs.213875 and Rs.212625 respectively) than
other farm size farmers. While the marginal farmers received very less
average crop loan (Rs.67400), followed by small farmers (Rs.145325) in
the study area.

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25. It was found that, the commercial banks have distributed Rs.16603.60
per acres in a study area. However the per acre crop loan distribution by
commercial banks in sangola taluka was higher (Rs.17165.65) than the
Mangalwedha taluka (Rs.16058.18).
26. It was also observed that out of sample 63 percent farmers who have
availed the crop loan reported that the loan was inadequate. Whereas
the remaining 37 percent farmers reported that it was adequate.
27. It was observed that, the study area most of the farmers (33.5 percent)
were taken the crop loan for the purpose of purchasing seeds, followed
by the purpose of to pay the charges of hired machinery (16.5 percent).
Moreover 15.5 percent of the farmers were had taken taking crop loan
for purchasing the Fertilizers. While 6 percent of the farmers had taken
of crop loan for of pesticides and 9 percent had for cultivation (9 percent)
purpose.
28. It was found the commercial banks in sangola taluka spending more time
average 19.4 days in sanctioning the crop loan to farmers compared to
Mangalwedha in the stud area. However in the study area averagely 17.3
days required for to crop loan sanction.
29. It was observed that, the 56 percent of the farmers says the period for
loan Repayment is short, followed by the problem of non-cooperation of
bank office (23 percent). Moreover 20 percent of the farmers says that,
there is problem with getting no dues from other banks. The time
consuming long process in loan sanctioning (13 percent) and the amount
of loan is insufficient (16 percent) are also an important problem in
accessing the crop loan from commercial banks in the study area.
30. It was found that, the out of sample 48.0 percent of the crop loan
borrowers have reported that crop loan are accessible, moreover
104(52.00 percent) crop loan borrowers have reported that they have
not suitable repayment process in the study area.

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31. It was observed that, the reinvestment in agriculture after receiving farm
income in the study area. Out of 200 samples 57.50 percent crop loan
farmers had reinvested of their income in agriculture while
remained(42.50 percent) of the farmers had not invested their farm
income in agriculture.
32. The sample farmers in the study area 86 (43.00) percent farmers have
fully repaid their loan instalment. Where 72(36.00 percent) farmers have
repaid the loan partially. Thus totally 79 percent of the farmers had
repaid their loan fully or partially in the study area. In case of the
remaining 42(21.00 percent) farmers were found. Diversion of crop loan
is be the major reason becoming Defaulter.
33. It was observed that samples farmers 48 percent of the farmers have
used the loan amount for the specified purposes for what purpose they
have taken loan like purchase of seeds, fertilizers, meeting labour
charges cost , and hire charges of the agriculture machineries ect.
Moreover While 34.50 percent of the farmers who have partially used
their loans for what purpose they have taken it. While the remaining
17.50 percent of the farmer’s had diverted the loans to other purpose
instead of for what purpose they have taken it.
34. It was found that, the 65.17 percent of the crop loan was used for
agriculture purpose and remained (i.e.34.84 percent) was used for non-
agriculture purpose. Moreover the use of crop loan for agriculture
purpose the share of mechanization purpose was dominant (10.39
percent) Moreover in the sangola taluka crop loan was use more
effectively then Mangalwedha taluka, overall study area 65.17
agriculture crop loan were effectively use. Means that effectiveness of
agriculture loan the study area more than 65 percent.
35. It was observed that, the after availing a crop loan to the farmers in study
area, the area under sugarcane was increased very highly (133.14

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 percent), followed by the area under wheat crop (95.95 percent).
Moreover the area under maize and Groundnut was also increased by
62.56 and 16.86 percent respectively. The area under oilseeds (16.86
percent), (sunflower 14.70 percent), (cotton 2.33 percent) and all
Vegetable (33.33 percent) also raised after having a crop loan in study
area.
36. It was observed that, the cropping pattern in study area was dominated
by food grains crops. These crops occupied nearly 62.97 percent of the
total cropped area. Moreover among the foodgrians the area under
cereals was 50.59 percent, followed by 12.38 percent pluses. However
the area under Sugarcane having second place (17.52 percent) after
Jawar among the all types of crops in study area. After the sugarcane
other than foodgrians crops cotton (8.06 percent) and Groundnut (5.38
percent) were cultivated majority in study area.
37. It was observed that, the share of maize production was almost higher
(45.50 percent) compere to other food crops, followed by wheat
production (21.46 percent). Moreover the share of Jawar which was
historical dominant crop in the Solapur district is at the third number in
production (16.68 percent) in the study area. Among the pulses the
production of gram was found dominant (3.48 percent) share, followed
by Tur crop production (2.11 percent). However among the non-food
crops sugarcane crops is having lions share 19498 tons, followed by
Groundnut production 1137 quintals. However on the other side after
having crop loans there was a decline production level of some food
crops as was as in non-food crops. Among the food crops the production
of Jawar declined highly by 53.29 percent, followed Udid (33.72 percent).
Moreover among the non-food crops there was higher decline in
Sunflower production (51.90 percent), followed by Safflower (44.23
percent) after having a crop loans by the farmers in the study area.

174
38. It was observed that, in the study area the yield of food grain crops in
study area was raised from 3.54 quintals per acre to 5.27 quintal during
the period of the crop loan, which registered 48.87 percent
improvement. Among the cereal crops, yield of Bajara increased by
20.50, followed by maize (12.85 percent) and wheat (6.13 percent). The
Yield of cereals too increased by 53.35 percent.
39. It was also observed that, in the study area yield of total pulses increased
by 13.51 percent, among pulses the yield of mug increased by 23.33
percent, followed by gram (20.66 percent), and Tur (6.97 percent).
Moreover the position of cash crops showed the increasing trend.
Among the cash crop the yield of sugarcane increased almost highly
(178.98 percent), followed by cotton yield (7.39 percent).
40. It was observed that, per acres cost of cultivation of foodgrians was Rs.
15762. In the study area cost of cultivation of foodgrians was increased
11.58 percent moreover cost of cultivation of total cereals was raised
16.49 percent and total Pules 9.05 percent. Cost of cultivation of Jawar
was higher 41.69 percent increased during loan period. Followed by
sugarcane 39.42 percent.
41. It was observed that, all the farmers in study area were having bank
account (100 percent), followed by having Kisan credit card 130 farmers
(65 percent). Moreover 62 percent of the farmers were having an ATM
card for their banking transaction. There was 125 farmers (62.5 percent)
who were using internet banking services in the study area. However
presently only 38(19 percent) farmers were maintained saving habit.
42. It was also found there was 263.64 percent growth in bank account
holder farmers, followed by 108.33 percent increase in internet banking
services access. Moreover there was 90.77 percent and 49.43 percent
growth in ATM cards and Kisan credit card holder farmers in study area.

175
 However the saving habit of the farmers in study area was decline by
64.45 percent after availing the crop loans.
43. It was observed that, the sample farmers 68.5 percent of the farmers
getting information from internet, followed Kisan call center (61
percent). The agriculture related new paper also providing information
to 60 percent farmers in the study area. Moreover the source of
magazine (56.5 percent) and radio (56.5 percent) were also playing
important role in providing some information to the farmers.
44. It was also observed that, the availability of crop loan and its impact on
access of information shows that after having crop loan the access of
information from agriculture related newspapers was raised highly by
(421.74 percent), followed by use of internet (302.94 percent).
Moreover use of Kisan call center and Kisan SMS service was increased
by 248.57 percent and 174.02 percent respectively.
45. It was found that, the 96.5 percent of the farmers in the study area were
having phone or mobile phone, followed by availability of television
(59.57 percent). Moreover 58 percent of the farmers were having gas
connection. Furthermore 20.5 percent of the farmers has a computer.
However the use of computer by the farmers in the study area increased
very highly (720 percent) after having a crop loan, followed by the use of
phone or mobile phone (262.26 percent). The use of television and gas
connection was raised 116.36 percent and 46.84 percent respectively in
the study area.
46. It was found that, the Presently in study area 53 percent of the farmers
were using chemical fertilizers and taking in crop insurance, followed by
use of high yielding seeds (50.57 percent). The use pesticides (31.51
percent) and bio fertilizers (37 percent) was comparatively less in study
area. Moreover after availing crop loan to the farmers the use chemical
fertilizers was increased very highly (324 percent), followed by the use

176
 of pesticides (133.33 percent). Moreover the use of Bio fertilizers (85
percent) and high yielding seeds (77.19 percent) was also increased
remarkably. While the use crop insurance by the farmers raised slowly
(51.43 percent) than other factors of agriculture modernization in study
area.
Suggestions
On the basis of the primary survey and secondary data, the fallowing some
suggestions regarding access and effectiveness of the agricultural loans in study
area.
1. It is suggested that farmers training camps and training programmes
may be conducted at the village level, occasionally or at consistent
intervals of time.
2. There is need for simplification of procedures for recovery of overdue of
the commercial banks.
3. Extension of repayment period in terms of consecutive crop failure due
to natural calamities is also required.
4. Credit limit should be increased to fulfill the credit gap. Because cover
this credit gap, farmers are forced to borrow from non-institutional
sources of credit.
5. The commercial banks are obligatory to accept more liberal practice for
distribution more crop loan to the farmers in the study area.
6. The choice between institutional and non-institutional crop loan is
mainly determined by their accessibility in study areas. The non-
institutional sector is characterized by simplicity and flexibility. So the
commercial banks must be made freely accessible to farmers.
7. There are no specific schemes for marginal and small farmers, all
benefits are utilized to the big farmers. However, there must be specific
schemes for marginal and small farmers.

177
8. The Proper initiation should be taken to release the crop loans as an
essential inputs such as seeds, fertilizers whenever is required to the
farmers.
9. In the study area Crop insurance is provided to the Commercial crops
only. These facilities are extended to the food crops also and marginal
and small farmers land holding is very small when compared to the big
farmers. However, the facilities are used only by big farmers. Therefore,
these facilities also extend to the marginal and small farmers also.
10. There is a requirement to tighten the supervision and monitoring
mechanisms on utilization of crop loans by farmers in study area for
productive purpose.
11. The crop loan should be rationalized in favor of small and marginal
farmers.
12. Timely crop loan is very vital in agriculture because the agricultural
activities are more time- specific and weather- specific. So, the delay in
approval and distribution of loan amount should be avoided.
13. The modern scale of crop loan followed by commercial and cooperative
banks even regional rural bank in study area has some limitations. For
some crops, the amount of crop loan is insufficient to cover the cost of
cultivation. Insufficiency in the crop loan amount further increases the
cost of borrowings and which leads to loan defaults. Therefore, the scale
of crop loan must be enhanced further to cover the ever increasing cost
of operations and cost of living.
14. Effectiveness of agriculture crop loan before and after field visit certainly
increase the proper utilization of the crop loan amount and ensure the
timely repayment. It is observed that the follow up of agricultural crop
loan is very weak especially after loan follow up. So, commercial bankers
should ensure that there is effective follow up of crop loans.

178
 15. The amount of instalment repayment should be matched with the
expected farm income of farmers from the agricultural operations.
16. Crop Loan products should be planned through studies of rural
households’ economic needs and their cash flow.
Conclusion
Agriculture is one of the most important sector of the Indian economy,
gives livelihood to almost two third of the workforce. Agriculture accounts for
14 per cent of India’s GDP although about 43 per cent of India’s geographical
area is used for agricultural activities. Agricultural credit is one of the essential
requirements for the growth of agricultural production and productivity. The
assessment of agriculture credit situation brings out the fact that the credit
delivery to the agriculture sector continues to be inadequate. It appears that
the banking system is still hesitant on various grounds to purvey credit to small
farmers. The situation calls for concerted efforts to augment the flow of credit
to agriculture and exploring new innovations in product design and methods of
delivery, through better use of technology and related processes. The
agriculture credit plays a vital role in the overall socio-economic development
of small farmers in the study area. As per primary survey, till today, some of the
farmers are depended on money lenders for agricultural credit. There is a need
to strengthen the institutional credit for agriculture and allied activities and
need based Agricultural crop loan system should be provided to small farmers.
However, in the study it is revealed.
In the study area the under forest was increased. The cropping intensity
in the District was declined in the period of 2000-03 to 2010-13. It was found
that, the area under food grain crops was 69.24 percent. Among the food grain
Jawar crop occupied highest area followed by wheat crop in the year of 2010-
13. Moreover among the pulses gram crop occupied highest area 3.75 percent
than other pulses. In case of non-food grain crops the position of total oil seed

179
crops showed that of the total gross cropped area 3.54 percent area was
brought under these crops
According to output pattern in the study are of the total cereals, output
of Jawar was commanding and next came maize. These two crops together
comprised 74.05 percent of food grins production of the District. Besides Jawar,
maize and wheat also produced and its share 13.73 percent of the food grains
production. Pluses were relatively less important, sharing only 8.60 percent of
total food grains production of the District.
It was observed that, yields of Groundnut (1639.66 kg) maize (1281 kg),
wheat (1181.67 kg) and Jawar (1065.33 kg) found in study area. Among the food
grain crops, maize has occupied first rank in the District Per hector and then
come the Wheat. Moreover, it was observed that during study, rice, Bajara,
Jawar and wheat have shown negative change. While remaining all the crops
have showed the positive change in the District. The yield of food grains crops
increased by 17.13, where the growth in yield of cereals was 17.73 percent. It
was observed that, the share in supplying of seeds by public sector declined
marginally, while the share of private sector was increased in Solapur District.
Electricity consumption for agricultural purpose was also raised in the Solapur
District. In the study area there are higher number of marginal farmers 35.46
percent, followed by small farmers 31.87 percent. It was also found that, the
bank branches were expanding in study area. Moreover various banks were
working in the rural semi-urban and urban area. 39.72 public sector bank were
working in the rural area, 29.44 percent 30.84 percent branches in semi-urban
and urban areas respectively. In the study area total advanced by Commercial
banks share was 47.62 percent and District Central Cooperative Banks 50.55
percent. The share of Commercial Banks in total advances given to costumes of
the District was almost higher followed by Regional Rural Banks and District
Central Cooperative banks. In the study area in the year 2006 the share of
priority sector lending was 66.86 percent, while it was raised to 81.23 percent

180
in 2014. Moreover priority sector lending given by Commercial Banks was
almost higher compared to District Central Cooperative Banks and Regional
Rural Banks. Moreover in the study area the share of District Central
Cooperative Banks in total agricultural advances was almost higher compare to
Commercial Banks and Regional Rural Banks in the year of 2006.
The average demand of crop loan in Mangalwedha taluka more compare to
sangola taluka. Moreover average demand of crop loan by the semi medium
size farmers was almost higher, followed by medium size farmers, compared to
other farm size in the study area. While there was very less demand of crop
loans by the marginal size farmers. The commercial banks have distributed
average crop loan to the farmers was Rs 165870 in the study area. However
there was not much more difference in distribution of crop loan in
Mangalwedha and sangola taluka. Moreover according to farm size wise
distribution of crop loan in the study area it was found that, medium and big
size farmers benefited highly than other farm size farmers. While the marginal
farmers received very less average crop loan in the study area. The commercial
banks have distributed Rs.16603.60 per acres in a study area. However the per
acre crop loan distribution by commercial banks in sangola taluka was higher
than the Mangalwedha taluka. It was also observed that majority farmers who
have availed the crop loan reported that the loan was inadequate. Most of the
farmer were taken the crop loan for the purpose of purchasing seeds, followed
by the purpose of to pay the charges of hired machinery. Moreover same
farmers were had taken taking crop loan for purchasing the Fertilizers, for of
pesticides and for cultivation. Commercial banks in sangola taluka spending
more time average days in sanctioning the crop loan to farmers compared to
Mangalwedha taluka. Most the farmers in the study area facing may problems
during the getting of the crop loans from the commercial banks.
The reinvestment in agriculture after receiving farm income in the study
area was 57.50 percent crop loan borrowers farmers had reinvested of their

181
income in agriculture. The sample farmers in the study area 79 percent of the
farmers had repaid their loan fully or partially in the study area. Diversion of
crop loan is be the major reason becoming Defaulter. Moreover in the study
only 48 percent of the farmers have used the crop loan amount for the
specified purposes for what purpose they have taken loan like purchase of
seeds, fertilizers, meeting labour charges cost , and hire charges of the
agriculture machineries ect. In the study area moreover 65.17 percent of the
crop loan was used for agriculture purpose. Moreover the use of crop loan for
agriculture purpose the share of mechanization purpose was dominant.
Moreover in the sangola taluka crop loan was use more effectively then
Mangalwedha taluka. The after availing a crop loan to the farmers in study area,
the area under sugarcane was increased very highly, followed by the area under
wheat crop. Moreover the area under maize and Groundnut was also increased.
Moreover fund positive impact on the cropping pattern in study area .The share
of maize production was almost higher compere to other food crops, followed
by wheat production. Moreover the share of Jawar which was historical
dominant crop in the Solapur district is at the third number in production in the
study area. Among the pulses the production of gram was found dominant
share, followed by Tur crop production. However among the non-food crops
sugarcane crops is having lions share, followed by Groundnut production.
In the study area the yield of food grain crops in study area was raised
during the period of the crop loan, which registered 48.87 percent
improvement. Among the cereal crops, yield of Bajara increased by 20.50,
followed by maize (12.85 percent) and wheat (6.13 percent). The Yield of
cereals too increased by 53.35 percent. In the study area cost of cultivation of
foodgrians was increased 11.58 percent moreover cost of cultivation of total
cereals was raised 16.49 percent and total Pules 9.05 percent. Cost of
cultivation of Jawar was higher 41.69 percent increased during loan period.
Followed by sugarcane 39.42 percent.

182
 Moreover in the study area all farmers were having bank account,
followed by having Kisan credit card 65 percent farmers. Moreover most of
farmers were having an ATM card and internet banking for their banking
transaction. It was observed that, farmers getting information from internet,
Kisan call center. The agriculture related new paper also providing information
to farmers in the study area. Moreover the source of magazine and radio were
also playing important role in providing some information to the farmers.
In the study area majority farmers in the study area were having phone
or mobile phone, followed by availability of television. Presently in study area
53 percent of the farmers were using chemical fertilizers and taking in crop
insurance, followed by use of high yielding seeds. The use pesticides and bio
fertilizers was comparatively less in study area. Moreover after availing crop
loan to the farmers the use chemical fertilizers was increased very highly,
followed by the use of pesticides.

183
 Bibliographies
A) Government Reports and Publications
1. Reserve Bank of India (1968), ‘All India Rural Credit Review Committee’
(Chairman: B Venkatappiah)
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ejlyNzBham1xanh2L2orOTVvMD0
2. Reserve Bank of India (1971), ‘Informal Study Group on Statistics relating to
Advances to the Priority Sectors’, May 1971
3. Reserve Bank of India, (1989). Report of the Agricultural credit Review
Committee (Chairman: A.M.Khusro), RBI, Bombay, August
http://www.prsindia.org/uploads/media/1182418292/bill128_20070621128
_Advisory_Committee_on_Flow_of_Credit_to_Agriculture_and_Related_Acti
vities_from_the_Banking_System_2004.pdf

4. Gupta, R.V. (Chairman) (1998), “Report of the High-Level Committee on

Agricultural Credit through Commercial Banks”, Reserve Bank of India,
Mumbai. https://www.rbi.org.in/scripts/BS_SpeechesView.aspx?Id=177

5. Mohan, Rakesh (2004), “Agricultural Credit in India: Status, Issues and Future
Agenda”, Reserve Bank of India Bulletin, Nov.
http://www.rakeshmohan.com/docs/AgricreditBulletin.pdf

6. Reserve Bank of India (2011), ‘Report of the Sub-Committee of the Central

Board of Directors of Reserve Bank of India to Study Issues and Concerns in the
MFI Sector’, (Chairman: Y H Malegam), January 2011.
https://www.rbi.org.in/scripts/PublicationReportDetails.aspx?ID=608

7. Reserve Bank of India (2012), ‘Report of the Committee to Re-examine the

Existing Classification and Suggest Revised Guidelines with regard to Priority
Sector Lending Classification and Related Issues’, (Chairman: M V Nair),
February 2012.
https://www.rbi.org.in/Scripts/BS_CircularIndexDisplay.aspx?Id=7460

184
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F) Websites
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2. https://mahades.maharashtra.gov.in/publications.do?pubId=MEF
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l
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195
 नावल
सोलापू र व यापीठ सोलापू र
कृ षी कजाची प रणामकारकता: सोलापू र िज याचा अ यास
संशोधक व याथ : संतोष सूयवंशी
संशोधन मागदशक : डॉ एस. एन कदम
-------------------------------------------------------------------------------------------------------------
----------
शेतक याचे नाव-------------------------------------------------------------------------------------------
----------
िज हा ------------------ तालुका ----------------------गाव-------------------------------------
ट प: ह सव मा हती गोपनीय ठे व यात येईल व मा हतीचा वापर फ त संशोधना साठ कर यात येईल.

ाथ मक मा हती
1. वय --------------------
2. ववा हक ि थती -----
१ ववा हत
२ अ ववा हत
3. श ण कती झाले आहे ,------------
१ नर र
२ ाथ मक श ण
३ मा य मक श ण
४ उ च मा य मक श ण
५ पदवी
६ पदवी तर
4. कृ षी े ासाठ कोण याह कारचे श ण घेत ले आहे का?
१ होय
२ नाह
६ . तु मचा यवसाय कोणता ?
१ शेती
२ खाजगी नोकर
३ शासक य नोकर
४ वंयमरोजगार
५ यापार

७ कुटु ं बातील एकूण सद य कती ?--------- एकूण पु ष ी

६ घराचे व प कसे आहे .
१ क चे
२ प के

196
 ३ आर सी सी समट

७ कु टु ं ब कार
१ वभ त
२ एक
८ तु मचा उ प नाचा मु य ोत काय आहे ?
१ शेती
२ नोकर
३ यापार
३ यवसाय
९ तु मचे वा षक उ प न कती आहे . .............................

शेती वषयक मा हती

१ तु म या शेतीचे े कती आहे? एकूण

२ ज मनीचे व प कसे आहे . ------------------------------------
१ ओ लताखाल ल े
२ बगर ओ लताखाल ल े
३ तु ह जमीन खंड ाने घेतल आहे का?
१ होय
२ नाह
४ तु ह तु मची जमीन खंडाने दल आहे का?
१ होय
२ नाह
५ तु म याकडे जल संचनाचा कोणता माग आहे ?
१ उपसा संचन
२ वह र
३ तलाव
४ कॅनॉल
५ बोअरवेल
६ जल संचनाची कोणती प ती तु ह वापरता
१ पारंपा रक प तीने
२ पाईपलाईन
३ ीप

197
 ४ ि ंकलर
५ ज मनीखालुन ( च लंग)
६ अ य

७ कृ षी े ासाठ पक वमा नय मत घेता का ?

१ होय
२ नाह
नसेल तर का पक वमा घेत नाह .........................................
८ तु हाला शेती यवसाय आवडतो का?
१ होय
२ नाह
९ उ तर होय अस यास याचे कारण –
१ शेतीचा अ भमान हणून
२ पारंपा रक यवसाय अस यामु ळे
३ चांगले सामािजक थान अस यामु ळे
४ चांगले उ प नाचे साधन
५ कृ षी े ाचे भ व य उ तम आहे
६ अ य
१० उ तर नाह अस यास याचे कारण-
१ उ प न चांगले नाह
२ चांगले भ व य नाह
३ कमी सामािजक दजा
४ मी उ च श त आहे यामुळे मला शेती आवडत नाह
५ हे े खू प धोकादायक आहे
६ अ य यवसाय आवडतो
११ मागील पाच वषात तु ह जमीन वकल आहे का?
१ होय
२ नाह
१२ उ तर होय अस यास याचे कारण –
१ बगडलेल आ थक ि थती
२ कज
३ ल न खच
४ वारस ह कासंबंधीचे वाद

198
 ५ यवसायासाठ
६ सावकारचे कज फेडणे
७ श णासाठ
८ दवाखाना खच
९ उ प न घट यामुळे
१० अ य
१३ कृ षी शे ातील अनु भव (वषाम ये)--------------------
१८ तु मचे नाव दा र य रे षे खाल ल कु टु ं बा या याद म ये आहे का?
१ होय
२ नाह

कजा संबंधी मा हती

१ शेती साठ कज घेतले आहे का?
१ होय
२ नाह
२ होय अस यास कती घेतले आहे --------------
३ तु म या शेतीपासून बँ क कती अंतरावर आहे ..................................
४ ा त कज पया त आहे
पया त
अपया त

अनु. माग मागणी केलेले कज य ा त कज

१ यापार बँ क

कृ षी कज घे यामागील उ ेश

अनु. कृ षी कजाचा उ ेश 
२ बी- बयाणे खरेद करणे
३ रासाय नक खाते खरेद करणे
४ शेती अवजारे मोबदला
५ शेतीची मशागत करणे
६ मकांचे वेतन दे णे
६ क टकनाशक खरे द करणे
७ Weedicides

५ तु ह अज के यानंतर कती दवसाने कज ा त झाले?-------------------

199
 ६ कज मळ यास उ शर होतो आहे असे आपणास वाटते का? होय ------नाह -------
उ तर होय अस यास याचे कारण ..............................................
७ कजावर याज दर कती आहे ? (ट के म ये)----------
८ कज घेताना तु हला कती अडचणी नमाण झा या ?
१ तारण
२ जामीनदार
४ कागदप े
५ ना-हरकत माणप
५ बँ क अ धकार यांचे असहकाय
९ पाठ मागील पाच वषात तु ह कोणाकडू न कज घेतले आहे का?
१ होय
२ नाह
१० उ तर होय अस यास कोणाकडू न-

१ रा यकृ त बँ क
२ सहकार बँ क
३ खाजगीबँ क
४ म -नातेवाईक
५ सावकार
६ जमीनदार
७ यापार
८ सू म व त सं था
९ अ य
10 कृ षी कज परतफेडीचा आकृ तीबंद तु हाला सोयीसकर आहे का?
१ होय
२ नाह
उ तर नाह अस यास याचे कारण काय--------------
11 कृ षी कजासाठ तारणसाठ तु हाला अडचण येते का?
१ होय
२ नाह

१२ तु ह कज या उ ेशासाठ कज घेतले या साठ वापरले आहे का

१ पू ण वापर केला आहे
२ अशंता वापर केला आहे
३ अ य साठ
१३ कजाचा उपयोग कसा केला आहे
अनु कजाचा उपयोग होय
१ मजु रांचे वेतन दे णे

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 २ यां क करण करणे
3 जमीन लागवड यो य बनवणे या साठ
4 रानगवत काडणीसाठ - अंतगत मशागत
5 पु नरलागवडीसाठ
6 जल संचन सु वधासाठ
7 HYV बयाची खरेद साठ
8 रासाय नक खते खरे द साठ
9 क टकनाशक खरेद साठ
10 मागील कजाची परत फेड कायासाठ
11 वीज बल दे णे
12 कृ षी म ये नवतं ानाचा वापर करणे
13 चालू खच भागवणे
14 मुलाचे श ण
15 ल न काय
16 सन समारं भ
17 गृह उपयोगी व तू साठ दूरदशन/ ज/फोन/गाडी/कार इ

१५ पक कज घे याअगोदर या (मागील वषातील) वषातील पक आकृ तबंध

अ. पक े उ पादन एकर खच
(एकर म ये) (ि वंटल म ये )
१ ऊस
२ गहू
३ वार
४ मका
५ बाजर
६ भुईमुग
७ सुयफुल
८ तू र
९ मुग
१० उडीद
११ कापू स
१२ पालेभा या
१३ करडई
१४ अ य

201
१६ पक कज घेत यानंतर (चालूवषातील) पक आकृ तबंध

अ. पक े उ पादन एकर खच
(एकर म ये) (ि वंटल म ये )
१ ऊस
२ गहू
३ वार
४ मका
५ बाजर
६ भुईमुग
७ सुयफुल
८ तू र
९ मुग
१० उडीद
११ कापू स
१२ पालेभा या
१३ करडई
१४ अ य

कजबाजार पणा
१. तु ह कजबाजार आहे का ?
१ होय
२ नाह
२. तु म यावर कती कज थक त आहे ? -------------------------
३. थक त कज कोणाचे आहे .
१ सहकार बँ क
२ रा यकृ त बँ क
३ खाजगी बँ क
४ नातेवाईक आ ण म
५ सावकार
६ यापार
७ जमीनदार
८ सू म व त सं था
९ अ य

202
थकबाक अस याची करणे

अनु कज बाजार पणाचे करणे होय

१ कृ षी आदाने यां या उ च कमती
२ घरगु ती उपभोगावर ल अ त र त खच
३ पीक अपयशी होणे
४ सामािजक कायावर अ त र त खच करणे
५ कृ षी उ पादनासाठ कमी कमत मळणे
६ न न कृ षी उ पाद ता
७ उ च याज दर
९ अ य

कृ षी कजाची प रणामकारकता
१. उ प नात जी वाढ झाल आहे , यामधील काह र कम तु ह पु हा शेती म ये
गु ंतवणूक स वापरल आहे का? उ तर होय अस यास कती ?..............
१ होय
२ नाह
२. राहणीमान दजाम ये सुधारणा
अनु . व तू ची नावे कज घे याआगोदर कज घेत यानंतर
१ ट ह
२ मोटारसायकल
३ सायकल
४ फोन
५ रे डीओ
६ वीज जोडणी
७ गस जोडणी

अनु . जल संचन कज घे याआगोदर कज घेत यानंतर

१ बोर
२ शेत तळे
३ ीप
४ ि ंकलर
५ इले ॉ नक मोटार

203
 अनु . बँ कं ग सवयी कज घे याआगोदर कज घेत यानंतर
१ बँ केत खाते आहे का
२ नय मत बचत करता का
३ कसान े डीट काड आहे का
४ A.T.M आहे का
५ ई बँ कं ग चा वापर करता

मा हतीचा वीकार

अनु . मा हती वीकार माग कज घे याआगोदर कज घेत यानंतर

१ INTERNET
२ News Paper
३ Magazine
४ Kisan call center
५ Kisan SMS
6 T.V. Programs

अनु . शेती आधु नक करण कज घे याआगोदर कज घेत यानंतर

१ स य खताचा वापर करता का
२ रासय नक खताचा वापर करता का
३ जै वक खाते वापर करता का
४ तन व क टकनाशक वापर करता का
५ सुधा रत बयाणे वापर करता का
6 कृ षी वमा घेता का

मागदशक, संशोधक व याथ

डॉ एस. एन कदम, एस. डी. सूयवंशी
संशोधन क , संशोधन क ,
संतोष भमराव पाट ल महा व यालय,मं प
ू संतोष भमराव पाट ल महा व यालय,मं प
ू
द ण सोलापू र, िज. सोलापू र द ण सोलापू र, िज. सोलापू र
सोलापू र व यापीठ सोलापू र सोलापू र व यापीठ सोलापू र

204