Challenges and Problems on Farmers’ Access to Agricultural Credit Facilities in Cauvery Delta, Thanjavur District
Keywords:
access, agriculture, credit, farmers, Cauvery Delta, Thanjavur DistrictAbstract
In India, mostly farmers depend on the credit facility provided by the banks to sustain their farming business. These credit facilities would help them to buy farm equipment for modernization and for constructing storage units. The farmers required the credit facilities in all stages of agricultural activities. The Indian government provides assistance to solve the financial problems and also facilitate to get the credit easily. Yet, the farmers are facing challenges to obtain credit facilities from the banks. This paper studies about the issues faced by the farmers to obtain the agricultural loans. The area of the study was Cauvery Delta, Thanjavur District. The sample size was 205. The research design used in this paper was convenience sampling technique. The researcher used Structural equation analysis for data analysis. The result revealed that the processing time taken by the bank was the major challenge, faced by the farmers. It indicated that difficulties in repayment of EMI, surety and collateral, interest rate and documentation also had an impact on obtaining the loans from banks.
References
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Udoka, C. O., Mbat, D. O., & Duke, S. B. (2016). The effect of commercial banks’ credit on agricultural production in Nigeria. Journal of Finance and Accounting, 4(1), 1-10.
Wantara, P. (2013). Using Structural Equation Modelling to Evaluate the Service Quality, Satisfaction and Customer's Loyalty in Hypermart Department Store, Bangkalan, Indonesia. Global Journal of Management and Business Research Marketing, 13(8), 29-36.
Asogwa, B.C., Abu, O., and Ochoche, G.E. (2014). Analysis of Peasant Farmers’ Access to Agricultural Credit in Benue State, Nigeria. British Journal of Economics, Management & Trade, 4(10), 1525–1543.
Ayegba, O., and Ikani, D.I. (2013). An Impact Assessment of Agricultural Credit on Rural Farmers in Nigeria. Research Journal of Finance and Accounting, 4(18), 80-89.
Das, A., Senapati, M., & John, J. (2009). Impact of agricultural credit on agriculture production: an empirical analysis in India. Reserve Bank of India Occasional Papers, 30(2), 75-107.
Dhakshana, J.A., and Rajandran, K.V.R. (2017). A Study on Challenges Faced by the Farmers in Direct Marketing, the Rural Business Series. Indian Journal of Science and Research, 14(1), 91-97.
Elias, S., Ahmad, I. M., & Patil, B. L. (2015). The Determinants of access to Agricultural credit for small and Marginal Farmers’ in Dharwad district, Karnataka, India. Research Journal of Agriculture and Forestry Sciences, 3(5), 1-5.
Etonihu, K. I., Rahman, S. A., & Usman, S. (2013). Determinants of access to agricultural credit among crop farmers in a farming community of Nasarawa State, Nigeria. Journal of Development and Agricultural Economics, 5(5), 192-196.
Hu, L. T., & Bentler, P. M. (1999). Cutoff criteria for fit indexes in covariance structure analysis: Conventional criteria versus new alternatives. Structural equation modeling: a multidisciplinary journal, 6(1), 1-55.
Jayanthi, M. and Rajandran, K.V.R. (2017). A Study on Challenges of Multicultural Team Members of IT Sector. International Journal of Management, 8(1), 111–118.
Jöreskog, K. G., & Sörbom, D. (2006). LISREL 8.80 for Windows [Computer software]. Lincolnwood, IL: Scientific Software International.
Kosgey, Y. K. K. (2013). Agricultural credit access by grain growers in Uasin-Gishu County, Kenya. IOSR Journal of Economics and Finance, 2(3), 36-52.
Mishra, A.D., and Mani, S. (2013). An Analysis of The Role of Bank Credit in Development of Agricultural Sector in Bihar With Special Reference to West Champaran District. Abinav National Monthly Refereed Journal of Research in Commerce & Management, 2(12), 60-68.
Njuguna, E., and Nyairo, N. (2015). Formal Conditions that Affect Agricultural Credit Supply to Small-scale Farmers in Rural Kenya: Case Study for Kiambu County. International Journal of Sciences: Basic and Applied Research, 20(2), 59-66.
Nunnally, J. C. (1978). Psychometric theory (2nd edition). New Jersey: McGraw-Hill.
Rajandran, K.V.R. (2013). Green technologies and business practices: a study on rural microenterprises in PURA scheme villages of Thanjavur District, Tamil Nadu, India. International Journal of Environment and Sustainable Development, 12(2), 197 – 203.
Richard, B., Ramzy, M. (2016). Study on Access to formal financial credit services By Smallholder Rural Farmers for Agricultural Investment: A struggling Option to Rural Development in Uganda. Proceedings of ISER International Conference, Auckland, New Zealand 13th -14th September, 1-6.
Saqib, S. E., Kuwornu, J. K., Panezia, S., & Ali, U. (2017). Factors determining subsistence farmers' access to agricultural credit in flood-prone areas of Pakistan. Kasetsart Journal of Social Sciences, 30, 1-7. https://doi.org/10.1016/j.kjss.2017.06.001
Sjah, T., Russell, I., & Cameron, D. (2003, August). Acceptance and Repayment of Agricultural Credit in Lombok Indonesia–Farmers’ Perspectives. In Proceeding in International Farm Management Congress 2003, 1-11.
Thakur, S. (2016). Modern agriculture technology versus India’s agricultural practices. Retrieved from: https://www.projectguru.in/publications/technology-indias-agricultural-practices/
Udoka, C. O., Mbat, D. O., & Duke, S. B. (2016). The effect of commercial banks’ credit on agricultural production in Nigeria. Journal of Finance and Accounting, 4(1), 1-10.
Wantara, P. (2013). Using Structural Equation Modelling to Evaluate the Service Quality, Satisfaction and Customer's Loyalty in Hypermart Department Store, Bangkalan, Indonesia. Global Journal of Management and Business Research Marketing, 13(8), 29-36.
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Published
2018-06-17
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Research Articles
