IMPACT OF FORMAL CREDIT ON AGRICULTURAL DEVELOPMENT IN THE RAJASTHAN

RAJU KUMAWAT¹*, N.K. SINGH², PRAMENDRA^3
1Department of Agricultural Economics, College of Agriculture, Swami Keshwanand Rajasthan Agricultural University, Bikaner, 334006, Rajasthan
²Department of Agricultural Economics, College of Agriculture, Swami Keshwanand Rajasthan Agricultural University, Bikaner, 334006, Rajasthan
³Department of Agricultural Economics & Management, RCA, Maharana Pratap University of Agriculture and Technology, Udaipur, 313001, Rajasthan
* Corresponding Author : rajageco7@gmail.com

Received : 09-01-2017     Accepted : 17-01-2017     Published : 30-01-2017
Volume : 9     Issue : 5       Pages : 3763 - 3766
Int J Agr Sci 9.5 (2017):3763-3766

Keywords : Agricultural credit, Farmers, Borrower and district
Academic Editor : Manish Kumar
Conflict of Interest : None declared
Acknowledgements/Funding : I owe my deepest gratitude to Indian Council of Agriculture Research for providing the necessary facilities and support for research work
Author Contribution : None declared

The present study was conducted to analyse the impact of agricultural credit on agricultural development and constraints in advancing the agricultural credit. The study was conducted in the district of Bikaner region viz., Sriganganagar, Hanumangarh, Bikaner and Churu district. A lead bank of each selected district was selected purposively for collection of secondary and primary data in respect of agricultural loan supplied to the farmers. A sample of 30 farmers was drawn as borrower farmers from each selected district by probability proportion to the number of borrower farmers. The increasing trend was observed in the value of net worth with increase in farm size on both borrower and non-borrower farmers of the study area. At overall level about 47 to 50 per cent net worth value was higher on borrower farmers than the non-borrower farmers. The value of current assets was ranged from 1.81 to 3.82 on borrower farmers in comparison to non-borrower farmers 1.02 to 2.90. Similarly, the intermediate ratio on borrower farmers was about 2.30 to 2.93 against 1.80 to 2.24 on non-borrower farmers. The net capital ratio was 13.00 to 19.60 on borrower farmers in comparison to 10.46 to 16.92 on non-borrower farmers. The overall difference in net income between borrower and non-borrower farmers was ranged ` 14377.1 to 274341 on per hectare. About 48 per cent higher income was recorded on borrower farmers than the non-borrower farmers at overall basis in the study area. The return per rupee on borrower farmers was ` 2.83 to 3.90 and 2.35 to 3.10 on non-borrower farmers. Thus, it can be concluded that financial position of all the borrower and non-borrower farmers in the study area was worthiness but in comparison the non-borrower farmers the financial position of all the borrower farmers of each selected district was quite worthiness in the study area