Role of credit in maize (Zea mays L.) production and assessment of food security in a selected area of Bangladesh

Abstract

Credit provides the means for many farmers to adjust their operations to keep up with the constant changes and, by doing so, to improve their operations. It also contributes to achieve food security of households. Tabular method is used to analyze credit profile, multiple regression analyses are used to determine the impact of credit on maize production and “Modified” OECD scale is used to measure calorie intake level of the 60 maize farming households who has got agricultural credit from Rajshahi Krishi Unnayan Bank in Lalmonirhat district of Bangladesh. Data were collected through field survey by using pre-designed and pre-tested interview schedule. TK.10500, 26333.33, 92103.77 (US$ 125, 313.49, 1096.47) for small, medium and large categories, respectively, which was 100% of the total applied amount. The total principal received by the household was about TK. 50, 02,500 (US$ 59553.57) and at 9% interest it became TK. 54, 52,725 (US$ 64913.39). The repayment performance of the households was about 100%. It is also revealed from the study that credit had a positive impact on fertilizer demand and irrigation demand and overall a positive impact on maize production. The coefficient of maize production with respect to agricultural credit was 0.081. The elasticity of fertilizer and irrigation demand with respect to credit was 0.016 and 0.543 respectively. The calorie intake situation of the sample households depicts that about 6.67% of the respondents belonged to the ultra-poor whose per day calorie intake was 1481.991 k.cal. About 20% of respondents were hardcore poor whose per day calorie intake was 1722.133 k.cal. The persons belonged to the absolute poor about 21.67% and per capita calorie intake was 1934.605 k.cal. The rest 51.67% belonged to the non-poor group. Different financial institutions should disburse sufficient agricultural credit to fulfill the requirement of the farmers.