Economic Analysis of Crop Loans Advanced by Solapur District Central Co-Operative Bank

In the present study, crop loans advanced by Solapur District Cenrtral Co-operative Bank (SDCCB) have been investigated to assess the credit gap for two crops, viz. rabi sorghum and banana. For this, three tehsils viz. Mangalwedha, Sangola and Mohol of Solapur district were purposively selected. The data were collected for the year 2010–11 and analyzed by tabular method. The study has observed that the scale of credit advanced/apporved by SDCCB for the crops under study, viz. rabi sorghum and banana, was low/scanty at different costs levels (viz. costs ‘A’, ‘B’ and ‘C’) and also at different criteria taken into account in the study (viz. at working capital level and at gross returns level). It is, therefore, necessary to raise the scale of finance for these crops by the SDCCB, in particular and other financial agencies, in general for these crops and also for other common crops cultivated in the state. The credit gap for rabi sorghum and banana at Cost ‘C’ being 65.33 per cent and 67.10 per cent respectively, it is imperative to raise credit for these crops by 65.33 per cent and 67.10 per cent, respectively.