Volume : IV, Issue : IX, September - 2015

PERFORMANCE OF PACS IN YSR DISTRICT OF ANDHRA PRADESH

K. Krishnaiah, Prof. B. Ramachnadra Reddy

Abstract :

Organisation of institutional credit and its utilisation for farm production has become one of the major planks of agricultural development policy in the developing world. India‘s experience is not different from that of the rest of the third world. In this paper an attempt has been made to study the dynamics of co-operative credit on the farm economy of the YSR district and thereby its favourable contribution to the financial flows in credit societies. To determine the impact of co-operative credit on yield and income, a comparison has been made between borrowers and non-borrowers of Primary Agricultural Co-operative Societies (PACS). Cost of cultivation, grain production, and gross income per acre are higher for all categories of borrowers than non-borrowers. There is a high degree of positive relationship between farm size and grain production and the correlation co-efficient worked out to 0.99 for borrowers and 0.94 for non-borrowers. Similarly farm size and gross income are positively related for both borrowers (r = 0.99) and non-borrowers (r = 0.98). It can be noticed that there is inequality in the distribution of income among different categories of farmers in both borrowers and non-borrowers. Gini co-efficient calculated for the data, which is (0.42) for non-borrowers is slightly higher than borrowers (0.41). Defaulters to total borrowers and percentage of Non Performing Assets to outstanding increased with the size of holding. The ‘r’ value is 0.99 for the latter which is higher when compared to the former (0.94). Average amount defaulted increased with the size of holding (r=0.98). There is a skewed distribution in the amount defaulted among different categories of farmers (SKP. 0.72). On the whole this study emphasizes the need for an equitable distribution of governing body membership, extensive rationing of credit, effective monitoring and prompt repayment of loans.

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Article: Download PDF    DOI : https://www.doi.org/10.36106/gjra  

Cite This Article:

K. KRISHNAIAH, Prof. B. Ramachnadra Reddy Performance of Pacs in Ysr District of Andhra Pradesh Global Journal For Research Analysis, Vol: 4, Issue: 9 September 2015

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