East Godavari territory is an agriculturally developed territory where the Paddy farms up to 53 per centum of the entire cultivated country. In the territory, Co-operatives are working in most efficient mode by supplying equal, inexpensive and timely recognition to agriculture and allied sector. They spread to the distant countries of the territory in order to function the needy husbandmans. The Cooperative Bank accepts sedimentations and lends both short-run and long-run recognition for production and investing intent through Primary Agricultural Co-operative Societies and besides straight to the husbandmans. On this background, an effort is made to analyse the impact of concerted recognition on the agricultural sector by taking East Godavari territory for sample survey.

Keywords: co-operative recognition, District Central Co-operative Bank ( DCCB ) , Primary Agricultural Cooperative Societies ( PACS ) , irrigation, output, harvest and term-loans, High output assortments ( HYV )

Introduction:

East Godavari is one of the north-eastern territories of Andhra Pradesh. It portions the differentiations of “ Rice Bowl of Andhra Pradesh ” by bring forthing Paddy of 2625 kilogram per acre. As it is situated on the coastal side of Andhra Pradesh, bulk of the East Godavari territory people depend on agribusiness and allied sectors for their support. It is one of the highest population denseness parts, as agribusiness is good developed. Rice, baccy, pulsations and coconut etc are the major harvests of this territory.

The net country cultivated with harvests signifiers about 41 per centum of the entire geographical country of the territory. Out of the net country sown a big part of the country is irrigated by the web of irrigation canals in the territory. The Godavari Irrigation System ( GIS ) irrigates all the mandals in delta part. Paddy forms 53 per centum of the entire country sown with an mean output of 2625 kilogram. / Acre in the territory. The territory stands foremost in the cultivation of the coconut and bananas. Out of the entire production of bananas and coconuts in the province 36 per centum and 57 per centum of the production is from this territory merely.

In this territory Co-operatives are working in most efficient mode by supplying equal, inexpensive and timely recognition to the agribusiness and allied sector. Co-operative Recognition establishments at territory degree are functioning the agribusiness and allied sector to a great extent in the East Godavari District. They spread to the distant countries of the territory in order to function the needy husbandmans. The Government of Andhra Pradesh set up Co-operative Central Bank at territory degree in Kakinada in the twelvemonth 1987. The East Godavari District Cooperative Central Bank Ltd. , Kakinada ( DCCB ) is one of the biggest Concerted Cardinal Banks in Andhra Pradesh providing the demands of the agriculturalists. It performs all the banking maps as per the Banking Regulation Act 1949. Now the bank is rendering services with 47 subdivisions and 293 Primary Agricultural co-operative Societies in the territory.

The bank accepts sedimentations and lends both short-run and long-run recognition for production and investing intent through Primary Agricultural Co-operative Societies and besides straight to the husbandmans. As on 31st March 2005 there were 48 subdivisions including caput office, 1534 Primary Agricultural Co-operative Societies with a rank of 47,532. These establishments mobilized sedimentations of Rs. 23, 131 Crores and issued short-run loans of Rs. 24, 567 hundred thousand and non-agricultural loans of Rs. 4545 hundred thousand. It earned a net income of Rs.124 hundred thousand for the twelvemonth 2004-05.

REVIEW OF LITERATURE:

As agribusiness forms the anchor of the Indian economic system, The Government of India recognized the importance of free flow of recognition to agriculture and allied sectors. Sharma ( 1967 ) stated that for agricultural development, recognition is an of import input which ensures equal working capital every bit good as infrastructural development. Adequate recognition increases the agricultural end product. Agricultural recognition and agricultural development goes by manus in manus, therefore the husbandman should be provided equal and inexpensive recognition ( Dutta and Sundaram, 2005 ) . It is supported by Kanthimathinadhan ( 2005 ) and suggested that without inexpensive recognition is non possible for little and fringy husbandmans to last. Shetty ( 2004 ) and Shivaloganathan suggested in their work that better institutional recognition installations is extremely indispensable for agricultural growing. Shivaloganathan suggested multi-agency attack in order to make full spread between supply and demand of recognition in agricultural sector. Pathania ( 1987 ) analyzed the use of co-operative recognition in agricultural sector and concluded that with the proper use of Co-operative recognition the husbandmans can increase their productiveness. It was strongly supported by Sharma ( 1989 ) , Modi and Rai ( 1993 ) , Sathey ( 1996 ) and Patnaik ( 1999 ) .B.Subrahmanyam ( 2005 ) viewed that Co-operative rural recognition bringing system has been farmer-friendly and has out reached to function agribusiness. Calvert ( 1996 ) competently argued that Cooperative recognition is the practical option to vigorish. Subbaiah & A ; Selvakumar ( 2005 ) observed that the institutional finance to agribusiness which has contributed 22.1 per centum of GDP in 2002-03. He besides found that the govt. has estimated the recognition flow from all loaning establishments for the twelvemonth 20003-04 at Rs. 80000 crores and has planned to heighten the degree of flow to Rs. 105000 crores for the twelvemonth 2004-05 which represents an addition of 30 per centum over the old twelvemonth. Vilasrao Deshmukh ( 2005 ) said that the Co-operatives in India history for more than half of industrial finance advanced to agriculture and one-fifth of private capital formation. Sri Rajnath Singh ( 2006 ) called upon the Govt. to take necessary stairss so that husbandmans may non hold to pay more than 6 percent involvement on the agricultural loans.

Methodology:

The aim of the present survey is to analyse the impact of concerted loans on agribusiness in the East Godavari territory of Andhra Pradesh. The present survey is an effort to analyse the impact of concerted recognition on the donees of the territory. Its ‘ focal point is regional and pertains to E.G. District merely. In position of this, an effort has been made to analyze the function of the District Central Cooperative Bank, Kakinada and Primary Agricultural Cooperative Societies working under it for the growing and development of agricultural sector in the East Godavari District of Andhra Pradesh. Agricultural development in the present work has been assessed through the flow of Cooperative recognition to farm sector. In order to analyze the impact of concerted recognition, the recognition supplied by the DCCB, Kakinada through PACS to different subdivisions of the agricultural sector has been analyzed. The recognition supplied by the concerted Bankss to different sectors such as short-run recognition, long-run recognition and recognition to agricultural sector has besides been analyzed. The growing in the use of agricultural inputs besides is analyzed to analyze the aim. The tendency of sedimentations, the ratio of fixed and nest eggs sedimentations in instilling the salvaging wont among the clients which in bend enhances the capital formation and recognition deployment was besides be considered for the analysis.

The survey is based on two sets of informations viz. , Primary and Secondary. The primary informations associating to socio-economic background, recognition construction, incomes, usage of fertilisers and HYV seeds, output per acre, employment coevals, and land substructure etc. are collected from 432 sample donees of East Godavari District by direct personal interview method. The sample donees were selected by graded random trying method. The secondary informations associating to the growing and development of concerted Bankss in the territory was collected from the assorted publications & A ; web sites of the Directorate of Economics and Statistics. Data relating to DCCB, Kakinada was obtained from the one-year studies & A ; web sites of DCCB, Kakinada.

The collected information was appropriately classified and tabulated for the intent of analysis and reading with simple statistical tools of analysis like ratios, per centums, etc. To prove the hypotheses, t trial and Paired’t ‘ trial etc. was used. To measure the impact of Co-operative recognition on the donees of agricultural sector, the informations associating to pre-loan and post-loan period was collected.

One of the major restrictions of the survey is that it has been confined to E.G. District merely, which is instead non a representative unit for realistic informations acquisition and practical comparings of the public presentation of assorted similar DCCBs. Merely paddy cultivation has been taken for the present survey as paddy cultivation is the chief basic of agribusiness in E.G. District. While roll uping the primary informations callback method was employed. As the sample respondents have no wont of keeping records of their operations particularly income, end product and so forth, there may be opportunities of mistakes in the information collected.

Analysis:

The Green Revolution consequences in singular alterations in agricultural sector. The Revolution initiated through the alterations in the attack of the Fourth Five Year Plan envisaged that overhauling agribusiness is more or less a engineering of inputs and its wise direction on scientific footing. This new state of affairs calls for greater fiscal investing on the portion of husbandmans for buying of the inputs. Consequently the proviso of recognition to husbandmans on broad footings and conditions become sine qua non of agricultural development in the state. The development of Co-operative recognition in the signifier of accelerator has accelerated the gait of agricultural development.

In the territory of East Godavari, Co-operatives are working in most efficient mode by supplying equal, inexpensive and timely recognition to agriculture and allied sector. The District Central Co-operative Bank, Kakinada being a husbandman ‘s bank in the territory covered all 1327 small towns and 54 Gross Mandals by its broad web of 47 subdivisions and 310 Primary agricultural Cooperative Societies supplying services from the last 88 old ages. The District Central Co-operative Banks are playing really important function in functioning the rural provincials of the province as a whole and E.G. District in particular..

In order to analyze the impact of Co-operative recognition on agribusiness, the full territory was grouped into three stratas depending upon the factor of irrigation viz. , Irrigated ( V1 ) , Semi-irrigated ( V2 ) and Non-irrigated ( V3 ) pockets. The impact of Co-operative recognition was analyzed by the modernisation of agricultural procedure during the pre-loan and post-loan periods.

To cognize the impact of agricultural recognition on borrowers, the survey is divided into two classs viz,

( I ) Impact on Agricultural Crop loan ( two ) Impact on Agricultural Term loan. Benefits derived by agricultural harvest loans and term loans are analyzed on the footing of the undermentioned parametric quantities:

Impact on irrigation

Impact on cropping form

Impact on usage of fertilisers, pesticides and manures etc.

Impact on labor cost

Impact on Production and output per acre

Impact on income per borrower and income per acre of keeping.

To cognize the impact on Agricultural harvest and term loans once more, the borrowers are classified on the footing of caste and operational retentions.

( I ) Impact ON AGRICULTURAL CROP LOAN

The short-run loans are disbursed in the signifier of ‘A ‘ and ‘B ‘ constituents, such that ‘A ‘ comprises hard currency part to run into the costs of agricultural operations and ‘B ‘ comprises sort part to run into the costs of seed, fertiliser, pesticides etc. , supplied to members through the co-operative sedimentations. The involvement for harvest loan is about 11 per centum boulder clay 2007-08. But now the involvement rate is traveling to diminish to a rate of 4 per centum from this twelvemonth ahead. The short-run loans are sanctioned for all harvests including local, improved and HYV as per the graduated table of finance. These loans help the agriculturists to run into the working capital demands and to bring forth excess for agricultural development.

The husbandmans are classified into three groups establishing on the size of land holdings-small ( below 2.5 estates ) , medium ( 2.5-5 estates ) and big husbandmans ( above 5 estates )

Table 1.

Distribution of sample donees on the footing of size of land retentions

Village

Size of land keeping in Estates

Small ( 0-2.5 )

Medium ( 2.5-5 )

Large ( above 5 )

V1

11 ( 25.0 )

24 ( 54.5 )

9 ( 20.5 )

V2

23 ( 54.7 )

10 ( 23.8 )

9 ( 21.4 )

V3

19 ( 34.5 )

23 ( 41.8 )

13 ( 23.6 )

Entire

53 ( 37.6 )

57 ( 40.4 )

31 ( 22.0 )

The figures in brackets indicate per centum to sum ;

Beginnings: Compiled from Questionnaires.

Table1 reveals that 37.6 per centum donees belong to little and fringy husbandmans ; the per centum is highest in V2 i.e. , 54.7 per centum. Large husbandmans occupy 22 per centum portion in entire retentions of the territory.

Harmonizing to the size of household, the donees are categorized into little ( 1-3 ) , medium ( 4-5 ) and large ( above 5 ) households.

Table 2.

Distribution of sample donees on the footing of their size of Family

Village

Size of Family in figure of members

Small ( 1-3 )

Medium ( 3-4 )

Large ( above 5 )

V1

23 ( 52.2 )

12 ( 27.3 )

9 ( 20.5 )

V2

6 ( 14.3 )

26 ( 61.9 )

10 ( 23.8 )

V3

7 ( 12.7 )

29 ( 52.7 )

11 ( 34.5 )

Entire

36 ( 25.5 )

67 ( 47.5 )

38 ( 27.9 )

The figures in brackets indicate per centum to entire ; Beginnings: Compiled from Questionnaires.

Of the entire donees medium size households come to 47.5 per centum and little households constitutes 25.5 per centum. Of the three sample groups V3 consists of more large households representing 34.5 per centum.

1.1 Impact on irrigation:

The irrigation installations include river, pools and canals, pump sets, dug Wellss, trickle irrigation, good with pump set etc. During the survey it is found that there is no impact on irrigation in V1 strata, but there is a great alteration in V2 and V3 groups after obtaining loans. The size of cyberspace cropped country is increased due to installing of pump sets, dug Wellss and good with pump set etc.

1.2 Impact on cropping form:

A alteration in cropping pattern demands more harvest loans to enable the husbandmans to harvest the benefits of advanced engineering. The impact of Credit Co-operatives ‘ finance on cropping form in the present survey is assessed on the footing of country cultivated under High Output Variety ( HYV ) by comparing the post-loan with pre-loan periods. At the same clip the usage of non-HYV in pre-loan and post-loan period is besides compared. It is apparent that the harvest loan has less impact on V2 small towns when compared to V1 and V3 sample groups. The usage of HYV is more in V1 group both in pre-loan and post-loan periods as their lands are of course fertile and irrigated. Hence the sample borrowers spent their borrowed financess on usage of HYV seeds. So far as the size of the husbandmans is concerned the impact is more in little husbandmans as compared to other husbandmans. The addition in the acceptance of HYV is statistically important. It is observed that the ‘t ‘ value of sample groups are 4.68, 5.63 and 3.9 severally which are statistically important at 0.1 per centum degree.

These observations lead to a decision that the agricultural harvest loan financed by DCCB, Kakinada has likely facilitated the acceptance of new engineering in East Godavari District

1.3 Impact of use of fertilisers, pesticides and manures:

The Green Revolution induced the husbandmans to utilize fertilisers and pesticides to acquire high productiveness. Increase in irrigation installations, intensive usage of HYV seeds and increase in infrastructural installations automatically induced them to pass more on fertilisers and pesticides to hold more end product per acre. Agricultural harvest loans enabled the husbandmans to use proper dosage of fertilisers, pesticides etc. at right clip and to maintain gait with the alteration in the new farm engineering in agribusiness. Supplying equal loans at right clip by the DCCB to the donees act as motivative factors.

There is a important impact on sample borrowers in ingestion of manures and pesticides over pre- loan to post-loan period which is statistically important. The’t ‘ value of V1 group is 3.27 which is statistically important at 1 per centum degree where as the ‘t ‘ value of V2 and V3 are 5.47 and 4.83 severally which is statistically important at 0.1 per centum degree.

1.4 Impact on labour cost:

Labour cost occupies a major portion in the cost of production. Labour plays a really of import and constructive function in altering cropping form of agribusiness because the altering cropping pattern demands more labour. With the aid of the agricultural harvest loans the agriculturists are able to run into the labor cost at right clip.

It is observed that the per centum addition over pre-loan to post-loan period is 67 per centum. The mean outgo on labor cost per acre of big husbandman is high i.e. , 95 per centum when compared to other size of husbandmans. However it is clear that there is a important impact of harvest loans on labor cost.It is besides observed that the labor cost is more in V1 group as the sample borrowers depend more on manual labor merely. The’t ‘ value of sample groups is 5.19, 6.8 and 3.9 severally and are statistically important at 10 per centum degree. Hence above analysis indicates that the agricultural harvest loan has a positive impact on labor cost in post-loan period.

1.5 Impact on production:

The of import facet of the impact of harvest loan is the positive alteration in production. By comparing the output of Paddy of borrowers in the post-loan with that of pre-loan period, it can be noted that there is an betterment in the output in all sample groups irrespective of size of retentions, and other factors of the donees.

Table 3

Output rate of Paddy per acre of different size of husbandmans during pre-loan and post-loan period

Size of agriculturists

Output per acre in bags*

Pre-loan

Post-loan

Small ( 0-2.5 )

18

24

Medium ( 2.5-5 )

21

29

Large ( above 5 )

25

38

Entire

22

32

Beginnings: Compiled from Questionnaires ; * A bag contains 75 kilogram of Paddy.

Table 4

Output rate of Paddy per acre of different Groups of husbandmans during pre-loan and post-loan period

Village

Output per acre in bags*

Growth in per centum

Pre-loan

Post-loan

V1

28

36

28.6

V2

20

28

40.0

V3

15

24

60.0

Entire

22

32

45.5

Beginnings: Compiled from Questionnaires ; * A bag contains 75 kilogram of Paddy.

It can be concluded from the above tabular arraies 3 and 4 that there is a important addition in the end product per acre over pre-loan to post-loan period. The ‘t ‘ value of sample groups is 5.01, 3.86 and 7.38 severally which are statistically important at 10 per centum degree. It is observed that the output rate has increased irrespective of the size of retentions. This might be due to the alteration in cropping forms, intensive usage of fertilisers and labour etc. , which can be resulted by the proviso of equal recognition in clip by DCCB, Kakinada and its attached PACS.

1.6 Income per borrower:

It can be concluded from the tabular arraies 5 and 6 that the income per borrower of different size of retentions and sample group villages has a positive growing. Their incomes have increased from Rs.15,337 to Rs.25,336 representing 65.2 percent growing. It is clear from the tabular array 6.21 that the per centum growing in income of little husbandmans is more than that of medium and big husbandmans. Table 6.23 reveals that the income per borrower of V1 sample group is more than that of V2and V3. But the per centum growing is high in instance of V3.

Table 5.

Income per borrower per acre of different size of husbandmans during pre-loan and post-loan period

Size of agriculturists

Income per borrower in Rs.

Pre-loan

Post-loan

Small ( 0-2.5 )

12,140

20,637

Medium ( 2.5-5 )

15,234

25,222

Large ( above 5 )

19,836

31,228

Entire

15,337

25,336

Beginnings: Compiled from Questionnaires.

Table 6

Income per borrower of different Groups of husbandmans during pre-loan and post-loan period

Village

Income per borrower in Rs.

Pre-loan

Post-loan

V1

22,483

34,612

V2

18,921

29,514

V3

10,223

18,112

Entire

15,337

25,336

Beginnings: Compiled from Questionnaires.

However, it can be concluded that there is a important impact of bank recognition on income per borrower in all classs, castes and sample groups which should be a positive growing in all instances.

1.7 Income per acre:

There is a important rise in income per acre of sample donees. The undermentioned tabular arraies 7and 8 reveal the fact that the growing per centum per acre on the footing of caste, size of retentions and sample groups.

Table 7

Income per acre of different size of husbandmans during pre-loan and post-loan period

Size of agriculturists

Income per Acre in Rs.

Growth in per centum

Pre-loan

Post-loan

Small ( 0-2.5 )

6,218

10,466

68.3

Medium ( 2.5-5 )

7,215

11,823

63.8

Large ( above 5 )

8,300

13,284

60.0

Entire

6,730

11,117

65.2

Beginnings: Compiled from Questionnaires.

Table 8

Income/acre of different Groups husbandmans during pre & A ; post-loan periods

Village

Income per Acre in Rs.

Growth in per centum

Pre-loan

Post-loan

V1

7,980

12,164

52.4

V2

5,130

9,369

82.6

V3

8,940

14,383

60.8

Entire

6,730

11,117

65.2

Beginnings: Compiled from Questionnaires.

From the tabular arraies 7 it is clear that the income per acre is high in instance of big husbandmans and growing rate is high in instance of little and fringy husbandmans. The impact of harvest loan on all size of husbandmans is statistically important. It is observed from the tabular array 8 that the income per acre of sample groups has important rise over pre-loan to post-loan period. It is clear that the income per acre is high in V3. But the per centum growing rate is high in V2 group than that of other sample groups. Though V3 has high income degree per acre, its per centum growing rate is low as the husbandmans are in high cost load. This is due to low birthrate and less irrigation installations. The husbandmans have to pass more on irrigation and fertilisers etc. But the end product is non increasing in the same proportion to cost. Another cause for low incomes of this sample groups is they are bring forthing merely one harvest for a twelvemonth. However the ‘ T ‘ values of sample groups are 4.32, 7.13 and 5.02 severally which are statistically important at 0.1 per centum degree. Hence it can be concluded that the agricultural harvest loans have a direct important impact on the income of the borrower and per acre over pre-loan to post-loan period.

2. Impact OF AGRICULTURAL TERM LOANS

The agricultural term loans are meant for long-run position and are used for development and investing intents. Such loans can be collectible over a figure of old ages and helps the agriculturists to proper substructure for agricultural development.

Table 9

Distribution of sample donees on footing of size of land keeping

Village

Size of land keeping in Acre

Small ( 0-2.5 )

Medium ( 2.5-5 )

Large ( above 5 )

V1

26 ( 53.1 )

14 ( 20.6 )

9 ( 18.4 )

V2

29 ( 54.7 )

13 ( 24.5 )

11 ( 20.8 )

V3

17 ( 41.4 )

10 ( 24.4 )

14 ( 34.1 )

Entire

72 ( 50.3 )

37 ( 25.9 )

34 ( 23.8 )

The figures in brackets indicate per centum to entire ; Beginnings: Compiled from Questionnaires.

Table 10

Distribution of sample donees on the footing of Family size

Village

Size of Family in figure of members

Small ( 1-3 )

Medium ( 3-4 )

Large ( above 5 )

V1

11 ( 22.4 )

14 ( 28.6 )

24 ( 41.0 )

V2

8 ( 15.1 )

29 ( 54.7 )

16 ( 30.2 )

V3

18 ( 43.9 )

23 ( 56.1 )

Entire

19 ( 13.3 )

61 ( 42.7 )

63 ( 44.0 )

The figures in brackets indicate per centum to entire ; Beginnings: Compiled from Questionnaires.

2.1 Impact of irrigation:

During the survey it is found that there is no impact of agricultural term loans on irrigation in V1 strata, but there is a great alteration in V2 and V3 groups after obtaining loans. The size of cyberspace cropped country has increased due to installing of pump sets, dug Wellss and good with pump set etc.As a consequence of assorted irrigation activities facilitated by agricultural term loans, the proportion of cyberspace cropped country of sample borrowers increased from 26.2 per centum to 56.3 per centum with a growing of 30.1 per centum.

2.2 Impact on cropping form:

An assured supply of H2O and other substructure installations enables in demoing cropping form in favor of more compensable harvests like HYV of Paddy. The agricultural term loan has a great function in supplying the infrastructural installations to agriculture. It is observed that the agricultural term loan has a important impact on the little and fringy husbandmans in the acceptance of HYV seeds over pre-loan to post-loan period. The impact is more in instance of medium husbandmans than little husbandmans. In pre-loan period the medium husbandmans have adopted HYV seeds on 44 per centum of Gross Cropped Area. In station loan period the per centum is increased 84.3 per centum. The fluctuation in per centum is 40.2 per centum. It is known from the field study that about 26 per centum of little husbandmans did non use the loan in productive intents. Due to this ground the impact on little husbandmans is likely less on the acceptance of HYV seeds as compared to medium husbandmans in post-loan period.

2.3 Impact on use of fertilisers, pesticides and manures:

Addition in irrigation installations, intensive usage of HYV and increase in infrastructural installations induce the agriculturists to utilize more fertilisers. The ingestion of fertiliser per acre has significantly increased in all sample groups over pre-loan to post-loan period. The ingestion of fertiliser is more in V3 group bespeaking 108.3 per centum due to low fertile lands ( Tylands ) . Hence, these small towns need more financess to increase the birthrate of the soil.The addition in the ingestion of fertiliser and pesticides per acre is statistically important.

2.4 Impact on labour cost:

The agricultural term loan has a important impact on labor cost per acre of all size of husbandmans irrespective of the size of family/ retentions. It is apparent from the survey that big husbandmans spent more on labor cost than little and average size husbandmans. With the aid of agricultural term loans the borrowers might hold earned a sound infrastructural base for cultivation. That might hold likely induced the borrowers to increase the outgo on labor cost per acre.

2.5 Impact on production:

Addition in irrigation installations, acceptance of HYV seeds, intensive usage of fertilisers, pesticides etc. increase the output rate of Paddy. With the consequence of these factors the output rate of Paddy has increased in all sample groups of small towns irrespective of the size and caste of the agriculturists. From the field study it is observed that the term loan for the purchase of Big Dippers, bullocks and other implements have played an of import function in increasing the output of harvests. This helps the borrowers to acquire timely service. The husbandman who had taken loans for dug good, or pump set or dug good with pump set or land development is able to ease irrigation and to change over fallow land to agricultural field and therefore increase their output.

Table 11

Output rate of Paddy per acre of different size of husbandmans during pre-loan and post-loan period

Size

Output per acre in bags* in Rs

Pre-loan period

Post-loan period

Small ( 0-2.5 )

21

28

Medium ( 2.5-5 )

25

32

Large ( above 5 )

25

38

Entire

24

34

Beginnings: Compiled from Questionnaires ; *A bag contains 75 kilogram of Paddy.

Table12

Output rate of Paddy per acre of different Groups of husbandmans during pre-loan and post-loan period

Village

Output rate per acre in bags*

Growth in per centum

Pre-loan period in Rs

Post-loan period in Rs

V1

28

38

35.7

V2

20

28

40.0

V3

15

26

73.3

Entire

24

34

41.7

Beginnings: Compiled from Questionnaires ; A bag contains 75 kilogram of Paddy

The addition in output of Paddy of pre-loan to post-loan period is besides statistically important in all sample small towns. The ‘t ‘ value of sample groups are 6.51, 4.15 and 5.3 severally, which are statistically important at 1 per centum degree.

2.6 Impact on income degree:

Change in income degree is the best index of the impact of bank loan on sample donees. Irrigation installations, alteration in cropping forms and increase in output rate finally increase the income of the borrowers. For the analysis of agricultural term loan on income degree of the borrower, two factors viz. , income per borrower and income per acre have been taken into consideration. For calculation of the income of sample borrowers, the predominating market monetary value of Paddy has been taken into consideration. In order to calculate income per acre the entire income is to be divided by the entire estates of land whether ain or leased. When the entire income is divided by the figure of sample borrowers, it gives the income per borrower.

2.7 Income per borrower:

It can be concluded from the tabular arraies 13 and 14 that the income per borrower has increased in all instances irrespective of caste, size of retentions and sample group small towns. However the growing of medium husbandmans ‘ income is more than the little and large husbandmans i.e. , 54.9 per centum. The growing per centum is less in instance of big husbandmans i.e. , 39.5 per centum.

Table 13.

Income per borrower per acre of different size of husbandmans during pre-loan and post-loan period

Size of agriculturists

Income per borrower in Rs.

Growth in per centum

Pre-loan period

Post-loan period

Small ( 0-2.5 )

13,890

19,473

40.2

Medium ( 2.5-5 )

15,750

24,396

54.9

Large ( above 5 )

18,915

26,386

39.5

Entire

16,250

23,884

47.0

Beginnings: Compiled from Questionnaires.

Table 14

Income per borrower of different Groups of husbandmans during pre-loan and post-loan period

Village

Income per borrowers in Rs.

Growth in per centum

Pre-loan period

Post-loan period

V1

18,365

25,638

39.6

V2

15,490

22,414

44.7

V3

13,675

22,317

63.2

Entire

16,250

23,884

47.0

Beginnings: Compiled from Questionnaires.

However, it can be concluded that there is a important impact of bank recognition on income per borrower in all classs, castes and sample groups which should be a positive growing in all instances.

2.8 Income per acre:

There is a important rise in income per acre of sample donees. The undermentioned tabular arraies 15 and 16 reveal the fact that the agricultural term loan has the impact on addition in income per acre on the sample donees irrespective of retentions and sample groups.

Table 15

Income per acre of different size of husbandmans during pre-loan and post-loan period

Size of agriculturists

Income per Acre in Rs.

Growth in per centum

Pre-loan period

Post-loan period

Small ( 0-2.5 )

6,478

10,332

59.5

Medium ( 2.5-5 )

7,873

10,699

35.9

Large ( above 5 )

8,416

11,975

42.3

Entire

7,896

11,607

47.0

Beginnings: Compiled from Questionnaires.

Table 16

Income per acre of different Groups of husbandmans during pre-loan and post-loan period

Village

Income per Acre in Rs.

Growth in per centum

Pre-loan period in Rs

Post-loan period in Rs

V1

8,115

11,256

38.7

V2

7,267

10,341

42.3

V3

6,626

10,582

59.7

Entire

7,896

11,607

47.0

Beginnings: Compiled from Questionnaires.

From the tabular arraies 15and 16 it is clear that the income per acre has increased from Rs. 7,896 to Rs.11,607 at per centum growing of 47 over pre-loan to post- loan period. The per centum growing rate is highest in instance of little husbandmans. The addition in income per acre in all size of the husbandmans is important. The’t ‘ value of sample groups are 5.1, 4.15 and 6.52 severally which are statistically important at 0.1 per centum degree. From this it may be concluded that the agricultural term loan has a direct important impact on the income degrees of the borrowers. The positive tendency in raising income per borrower and income per acre of retention has been a changeless characteristic in all classs, caste and groups of husbandmans.

Decision:

It is clear from the above survey that there was no important impact of harvest loans in irrigated small towns, whereas there was a important impact on Semi-irrigated and non-irrigated small towns. When compared to semi and non-irrigated small towns, the harvest loans played a really important function in non-irrigated small towns. The impact of Co-operative recognition was analyzed by the modernisation of agricultural procedure during the pre-loan and post-loan periods. There was an tremendous addition in the use of HYV seeds, modernized inputs, fertilisers and pesticides from pre-loan to post-loan period. The modern procedure of agribusiness increased the output per acre and besides the income per acre which in bend increased the income of the sample borrowers. The husbandmans of the territory were greatly benefited by the recognition proviso of the DCCB, Kakinada. The husbandmans have taken loans non merely to increase the productiveness, but to develop the procedure of cultivation as a whole.

The present survey clearly enunciated the advantages enjoyed through improved engineering with the attempts of the bank for the donees in footings of high production, increased cyberspace returns and subordinate incomes. The consequences further emphasized the demand to edify the husbandmans about the high quality and profitableness of improved engineering through the extended recognition services. By and big the function of DCCB is extremely impressive and clearly exhibited in the socio-economic development gained by the donees. Finally it can be concluded that the concerted recognition has a important impact on the agricultural sector in the territory by supplying equal & A ; seasonably recognition to the husbandmans.