IMPACT OF AGRICULTURAL CREDIT ON SUGARCANE PRODUCTION

G. UTHAMALINGAM¹*, K.R. ASHOK², M. CHINNADURAI³, K. MAHENDRAN⁴, M.R. DURAISAMY^5
1Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
²Director, Centre for Agricultural and Rural Development Studies (CARDS), Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
³Professor, Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
⁴Professor, Department of Agricultural and Rural Management, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
⁵Professor and Head, Department of Physical Sciences and Information Technology, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
* Corresponding Author : gulingam@gmail.com

Received : 02-02-2020     Accepted : 13-02-2020     Published : 15-02-2020
Volume : 12     Issue : 3       Pages : 9504 - 9507
Int J Agr Sci 12.3 (2020):9504-9507

Keywords : Credit, Resource use efficiency, Frontier, Sugarcane
Academic Editor : Dr Manoj Sharma, Nimit Kumar
Conflict of Interest : None declared
Acknowledgements/Funding : Authors are thankful to Department of Agricultural Economics, Tamil Nadu Agricultural University, Coimbatore, 641003, Tamil Nadu, India
Author Contribution : All authors equally contributed

An attempt has been made in this paper to highlight the impact of agricultural credit on sugarcane production in Erode district of Tamil Nadu. Resource use efficiency and stochastic frontier model was employed to assess the impact of agricultural credit on sugarcane production between borrower-and non-borrower farmers. Results revealed that borrower sugarcane farmers are using more quantity of inputs (setts, machine hours, irrigation hours, manure and human labour) compared to non-borrower sugarcane farmers. MVP to MIC ratio indicates that human labour usage and irrigation hours are underutilised by both the sugarcane farmers. Stochastic frontier results revealed that Borrowers are more technically efficient in sugarcane production compared to non-borrower. Based on the results appropriate policy were suggested.

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