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Efficient utilisation of credit by the farmer-borrowers in Chittoor district of Andhra Pradesh, India

The present study has aimed at analyzing the technical and scale efficiencies of credit utilization by the farmer-borrowers in Chittoor district of Andhra Pradesh, India. DEA approach was followed to analyze the credit utilization efficiency and to analyze the factors influencing the credit utilizat...

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Main Authors: A. Siva Sankar, K. Nirmal Ravi Kumar
Format: Non-Indexed Article
Published: Universiti Malaysia Kelantan 2016
Online Access:http://discol.umk.edu.my/id/eprint/8495/
http://www.jtrss.org/JTRSS/volume4/JTRSS-17-12-16-MAZ9/4-2-105-111.pdf
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spelling my.umk.eprints.84952022-05-23T10:27:48Z http://discol.umk.edu.my/id/eprint/8495/ Efficient utilisation of credit by the farmer-borrowers in Chittoor district of Andhra Pradesh, India A. Siva Sankar K. Nirmal Ravi Kumar The present study has aimed at analyzing the technical and scale efficiencies of credit utilization by the farmer-borrowers in Chittoor district of Andhra Pradesh, India. DEA approach was followed to analyze the credit utilization efficiency and to analyze the factors influencing the credit utilization efficiency, log-linear regression analysis was attempted. DEA analysis revealed that, the number of farmers operating at CRS are more in number in marginal farms (40%) followed by other (35%) and small (17.5%) farms. Regarding the number of farmers operating at VRS, small farmers dominate the scenario with 72.5 per cent followed by other (67.5%) and marginal (42.5%) farmers. With reference to scale efficiency, marginal farmers are in majority (52.5%) followed by other (47.5%) and small (25%) farmers. At the pooled level, 26.7 per cent of the farmers are being operated at CRS, 63 per cent at VRS and 32.5 per cent of the farmers are either performed at the optimum scale or were close to the optimum scale (farms having scale efficiency values equal to or more than 0.90). Nearly 58, 15 and 28 percents of the farmers in the marginal farms category were found operating in the region of increasing, decreasing and constant returns respectively. Compared to marginal farmers category, there are less number of farmers operating at CRS both in small farmers category (15%) and other farmers category (22.5%). At the pooled level, only 5 per cent of the farmers are operating at DRS, majority of the farmers (73%) are operating at IRS and only 22 per cent of the farmers are operating at CRS indicating efficient utilization of credit. The log-linear regression model fitted to analyze the major determinants of credit utilization (technical) efficiency of farmer-borrowers revealed that, the three variables viz., cost of cultivation and family expenditure (both negatively influencing at 1% significant level) and family income (positively influencing at 1% significant level) are the major determinants of credit utilization efficiency across all the selected farmers categories and at pooled level. The analysis further indicate that, escalation in the cost of cultivation of crop enterprises in the region, rise in family expenditure and prior indebtedness of the farmers are showing adverse influence on the credit utilization efficiency of the farmer-borrowers. Universiti Malaysia Kelantan 2016-12-30 Non-Indexed Article NonPeerReviewed A. Siva Sankar and K. Nirmal Ravi Kumar (2016) Efficient utilisation of credit by the farmer-borrowers in Chittoor district of Andhra Pradesh, India. Journal of Tropical Resources and Sustainable Sciences, 4 (2). pp. 105-111. ISSN 2462-2389 http://www.jtrss.org/JTRSS/volume4/JTRSS-17-12-16-MAZ9/4-2-105-111.pdf
institution Universiti Malaysia Kelantan
building Perpustakaan Universiti Malaysia Kelantan
collection Institutional Repository
continent Asia
country Malaysia
content_provider Universiti Malaysia Kelantan
content_source UMK Institutional Repository
url_provider http://umkeprints.umk.edu.my/
description The present study has aimed at analyzing the technical and scale efficiencies of credit utilization by the farmer-borrowers in Chittoor district of Andhra Pradesh, India. DEA approach was followed to analyze the credit utilization efficiency and to analyze the factors influencing the credit utilization efficiency, log-linear regression analysis was attempted. DEA analysis revealed that, the number of farmers operating at CRS are more in number in marginal farms (40%) followed by other (35%) and small (17.5%) farms. Regarding the number of farmers operating at VRS, small farmers dominate the scenario with 72.5 per cent followed by other (67.5%) and marginal (42.5%) farmers. With reference to scale efficiency, marginal farmers are in majority (52.5%) followed by other (47.5%) and small (25%) farmers. At the pooled level, 26.7 per cent of the farmers are being operated at CRS, 63 per cent at VRS and 32.5 per cent of the farmers are either performed at the optimum scale or were close to the optimum scale (farms having scale efficiency values equal to or more than 0.90). Nearly 58, 15 and 28 percents of the farmers in the marginal farms category were found operating in the region of increasing, decreasing and constant returns respectively. Compared to marginal farmers category, there are less number of farmers operating at CRS both in small farmers category (15%) and other farmers category (22.5%). At the pooled level, only 5 per cent of the farmers are operating at DRS, majority of the farmers (73%) are operating at IRS and only 22 per cent of the farmers are operating at CRS indicating efficient utilization of credit. The log-linear regression model fitted to analyze the major determinants of credit utilization (technical) efficiency of farmer-borrowers revealed that, the three variables viz., cost of cultivation and family expenditure (both negatively influencing at 1% significant level) and family income (positively influencing at 1% significant level) are the major determinants of credit utilization efficiency across all the selected farmers categories and at pooled level. The analysis further indicate that, escalation in the cost of cultivation of crop enterprises in the region, rise in family expenditure and prior indebtedness of the farmers are showing adverse influence on the credit utilization efficiency of the farmer-borrowers.
format Non-Indexed Article
author A. Siva Sankar
K. Nirmal Ravi Kumar
spellingShingle A. Siva Sankar
K. Nirmal Ravi Kumar
Efficient utilisation of credit by the farmer-borrowers in Chittoor district of Andhra Pradesh, India
author_facet A. Siva Sankar
K. Nirmal Ravi Kumar
author_sort A. Siva Sankar
title Efficient utilisation of credit by the farmer-borrowers in Chittoor district of Andhra Pradesh, India
title_short Efficient utilisation of credit by the farmer-borrowers in Chittoor district of Andhra Pradesh, India
title_full Efficient utilisation of credit by the farmer-borrowers in Chittoor district of Andhra Pradesh, India
title_fullStr Efficient utilisation of credit by the farmer-borrowers in Chittoor district of Andhra Pradesh, India
title_full_unstemmed Efficient utilisation of credit by the farmer-borrowers in Chittoor district of Andhra Pradesh, India
title_sort efficient utilisation of credit by the farmer-borrowers in chittoor district of andhra pradesh, india
publisher Universiti Malaysia Kelantan
publishDate 2016
url http://discol.umk.edu.my/id/eprint/8495/
http://www.jtrss.org/JTRSS/volume4/JTRSS-17-12-16-MAZ9/4-2-105-111.pdf
_version_ 1763303992441438208
score 13.211869

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