Impact of institutional agriculture credit on profitability of paddy

Abstract

Rice is the staple food for largest community in the world belongs to the poaceae family. It is 10,000 years old farming covering alone 11% of arable land. It is considered to be the largest source of energy for poor men. This crop is leading among all other food crop worldwide. In India, it is grown over an area of about 45 million hectares producing about 112.91 million tonnes of grain. In terms of both area and production, it stood second after wheat. It alone provides about 22 percent and 17 percent of calories and proteins to the world’s total supply. The yield of paddy in before credit use situation was estimated to be 48 Qt. per ha, which increased to 52 Qt. per ha in after credit use situation. The increase in yield was estimated to be 7.06 percent. The average price realized by farmers for paddy was found to be Rs.950 per Qt. in before credit use situation, while same realized in after credit use situation was Rs.1060 per Qt. Thus, net returns received were found to be increasing by 37.01 percent after credit use situation over the same in before credit use situation.Thehighernetreturnsrealizedinaftercreditusesituationfrompaddy were on account of higher yield obtained and better price fetched by the farmers.