A study was carried out in Telangana State of India using net returns accrued from crops, fruit trees and livestock in three distressed districts namely Adilabad, Nalgonda and Warangal. The study identified sustainable and profitable land uses, estimated credit requirement and formulated credit investment action plan. A total of 270 respondents were selected from three districts at 90 respondents per district. Profitable annual and perennial crops and livestock enterprises were identified based on the calculated value of system index and benefit-cost ratio. Benefit-cost ratio varied from 1.58 in cotton + pigeonpea intercropping system in rural areas to 3.98 in soybean + pigeonpea in peri-urban agriculture in Adilabad, from 1.69 in the production of chillies to 2.65 in cotton + pigeonpea in rural areas of Nalgonda and from 1.71 in the production of vegetables in rural to 7.14 in the production of turmeric in peri-urban agriculture in Warangal. The economic indicators taking a lifespan of 15 years for fruit trees showed a payback period of 5 and 7 years; BCR of 1.61 and 2.07 and NPV of 267 crores and 109 crores constant at 2010 prices for sweet orange and mango in Nalgonda and Warangal districts, respectively. Every one rupee invested in sweet orange and mango fruit trees provide an income of 1.61 and 2.07, respectively. Every one rupee invested on rearing of large ruminants for dairy accrues 3.04, 3.44 and 3.32 while small ruminants rearing gives 4.05, 5.28 and 5.54 in Adilabad, Nalgonda and Warangal districts, respectively. A district level investment action plan taking full credit requirement for crops, fruit trees and livestock was formulated which has policy implication as there is a large credit demand from the farming community.
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