Page 1 of 10

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 04 Issue 01

January 2018

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 218

An Empirical Analysis Of Socio Economic

Conditions Of Agricultural Borrowers - A

Study Of Telangana State

Prof. M. Yadagirii

Mr. R. Sunilii

1 Dean & Head, Department of Commerce, Telangana University, Nizamabad-503 322. T.S.

1

Research Scholar, Department of Commerce, Telangana University, Nizamabad-503 322 T.S.

Abstract:

This paper aims to study impact of socio-economic characteristics of agricultural borrowers on

access to agricultural credit in two selected districts (Nizamabad and Adilabad). Data have been

collected using a structured questionnaire from a sample of 207 beneficiaries of State Bank of

Hyderabad and Andhra Bank. The banks are helping the farmers of downtrodden community and

there is a possibility of enhancing their perception of the policies and procedures of raising loans

by themselves.

Keywords: Agricultural Credit, Socio Economic conditions.

Introduction:

The Telangana State was carved-out from the

erstwhile Andhra Pradesh and came into

existence with effect from 2nd June, 2014.

The state emerged as 29th and the youngest

state in the Indian Union with a geographical

area of 1, 12,077 Sq.kms. As per the 2011

Census, the total population of State is about

3.5o crore. Telangana is predominantly an

agrarian state. About 73 per cent of its

population still depends on agriculture for

their livelihood. The direct contribution of

agriculture and allied sector registered a

robust growth of 12.1 per cent in 2016-17

prices, as against the dismal growth of (-) 6.3

per cent observed in 2015-16 at constant

(2011-12) prices. The share of agriculture in

the Gross State Domestic Production has

come down to about 15 per cent. Credit

facilitates the meeting of various social,

economic and cultural needs of households.

Uncertain monsoon and depleting ground

water are to be guiding factors in agriculture

credit by banks. The total land area of the

State is 114.84 lakh hectares, out of which

the area under forest cover is 27.43 lakh

hectors (23.89 per cent) and 49.61 lakh

hectares (43.20 per cent) area is under

cultivation.

Need of the Study:

Page 2 of 10

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 04 Issue 01

January 2018

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 219

As in other states agriculture credit is being

provided in Telangana State by Commercial

Banks, Cooperative Banks and Regional

Rural Banks .These banks extend credit for

various purposes like crop loans, medium

term loans for deepening the wells, oil

engines, motor pumps, buying of bullock

carts and long term loans for buying long

term fixed assets like tractors, harvesting

machines, and construction of godowns etc.

All the loans are provided against the pledge

of the lands in the name of the borrower. For

calculating the credit requirements, banks

apply the scales of finance recommended by

the District Level Technical Committee

constituted under Lead Bank scheme Credit

Plan. The total credit deployed by the three

sources in Telangana State increased from

Rs. 128241 Crores to 301497.85 Crores

registering the growth of 2.35 times.

Consequently, agriculturalist always needs credit

to carry out agricultural operations throughout

the years and they became agricultural

borrowers.

Objective of the Study:

The study mainly focused on the pattern of

Socio-Economic Conditions of the

Agricultural Borrowers in the light of the

above facts.

Study area and Methodology:

Out of the 10 districts before the increase the

number of districts of Telanagana State 2

districts (20 per cent) i.e., Nizamabad and

Aliabad are taken to represent highest and

least loaning districts. As at the end of

December 2016, there are 27 public sector

commercial banks working in the country out

of which 2 banks; State Bank of Hyderabad

and Andhra Bank are chosen. There are 2031

borrower accounts in force as at the end of

March 2017, out of which 1096 are of State

Bank of Hyderabad and 935 belong to

Andhra Bank. For the purpose of in-depth

study of Socio Economic conditions of

sample of 207, which represents 10.19 per

cent of borrowers’ accounts is taken on

random basis by employing lottery method.

Out of the total sample of 207 loan accounts

111 about 12 per cent borrower accounts are

of State Bank of Hyderabad and 96 about

10.26 per cent belong to Andhra Bank. The

well drawn questionnaire is circulated

personally among the select borrowers

during April-May 2017 which is considered

as work-free time for the farmers and it is a

normal period for the researcher.

Socio-Economic conditions of Agricultural

Borrowers:

It is mentioned earlier that for testing the

reliability of the responses, the perception

levels of the respondents are to be examined.

The age, formal educational qualifications,

and experience of the responding farmers are

taken to assess their perception levels. In

what follows a discussion about their

perception criteria are analyzed.

Age Group:

Age of the respondent is one of the important

indexes of comprehension about the

conditions and environment prevailing

around the farmer concerned. Hence an

attempt is made to examination the age

structure of the respondents with the help of

their responses. Out of the 111 borrowers of

State Bank of Hyderabad 40.54 per cent are

from Nizamabad and 59.46 per cent are from

Adilabad most of them about 43.25 per cent

Page 3 of 10

Journal for Studies in Management and Planning

Available at

http://edupediapublications.org/journals/index.php/JSMaP/

ISSN: 2395-0463

Volume 04 Issue 01

January 2018

Available online: http://edupediapublications.org/journals/index.php/JSMaP/ P a g e | 220

are in the age group of 35-45 years. It can be

seen that 44.44 per cent borrowers in this age

group are from Nizamabad district and 42.42

per cent are from Adilabad district. The

average age of the State Bank of Hyderabad

respondents is 37.77 years whereas it is

36.88 years of the Andhra Bank respondents.

Further, it is observed that a large number of

respondents from Nizamabad are seniors

than the borrowers in Adilabad by age.

Coming to the 96 borrowers of Andhra Bank,

it is observed that 44.79 per cent are in

Nizamabad and 55.25 per cent are in

Adilabad. About 41.67 per cent of them are

in the age group of 30-40 years. Location- wise analysis of the respondents by age a

similar trend is discernible. All these age

analysis of the borrower- respondents of both

the banks clearly indicate that they are young

and energetic to comprehend the

environment around them.

Education Level:

Education is no doubt very difficult to define

but formal educational qualification is taken

as an indicator of the under standing capacity

to understand and comprehension of

environment. Formal qualification is helpful

in understanding; interacting and problem

solving that arise in the routine life. Since

the subject matter of the present research is

relating to agricultural activities in rural

environment, formal education may not be

considered as a pre-requisite to enter into this

profession, but it certainly broadens the

horizon of the people. Hence to assess the

perception levels of the Borrowing

Respondents, it is proposed to examine their

formal educational qualifications. It can be

concluded that 43 to 53 per cent of them are

illiterates. It means that the remaining 50 per

cent have formal educational qualifications

but hardly 8 per cent hold intermediate and

above qualifications. In Adilabad the

percentage of illiterates 44.79 per cent is

lesser than that in Nizamabad 49 per cent.

The reason for such significant difference is

that the Government is offering many

opportunities to the tribal people to study and

become aware of the modern developments.

Out of the total 207 Borrower Respondents

only one is found in Nizamabad to have post- graduation and that too in classical language

area. Thus in terms of formal educational

qualifications, the farmers in Nizamabad and

Adilabad are much behind the modern levels

of education.

Experience in Agricultural Activities:

In rural economic environment agricultural

is the only profession which provides

employment on large scale due to which

formal educational qualification is ignored

by the people. As such it becomes rational to

examine the experience of the Borrower

Respondents in farming operations in

addition to focusing on their educational

qualifications. Hence, an attempt is made to

study the experience of the Borrower

Respondents in agriculture. In most of the

rural households much importance is given to

family occupation and their traditional

association with the domestic chores.

Therefore, a study of the length of experience

of the Borrower Respondent is going to

throw light upon their levels of perception of

the farming and other allied matters like

scale of finance, seasonal requirements and