Credit Utilization and Repayment Pattern of Aquaculture Farmers of Thanjavur District of Tamil Nadu

This study has analysed the credit utilization and repayment pattern of aquaculture farmers in the Thanjavur district of Tamil Nadu covering a total of 80 aqua farmers comprising 40 carp and 40 shrimp farmers. Institutional credit plays an important role in the development and expansion of aquaculture. The study has revealed that 50 per cent of the carp farmers had taken loan from formal institutions but none of the shrimp farmers had availed credit from formal institutions. The carp farmers had taken loan for both investment and production expenditures, whereas the shrimp farmers availed the credit only for production purposes. The majority of aquaculture farmers from high income groups utilized the borrowed loan for the intended purpose. In carp farmers, education, occupation and farm size had significant and positive relationship with the credit utilization pattern, whereas in shrimp farming, education, occupation, farm size and experience, had positive and significant relationship with the credit utilization pattern. Shrimp farming needs technical experience and experienced farmers were found to utilize credit for the intended purpose. Natural calamities and increased input costs were the major reasons for non-repayment of credit by carp and shrimp farmers, respectively. Crop loan, crop insurance, and timely institutional credit may improve aquaculture in the state.