Impact of Subsidised Agricultural Credit on Farmer's Economy in Karnataka: An Economic Analysis

This study has assessed the input-use pattern of subsidised agricultural credit (SAC) by the farmers in Gulbarga district during 2011–12. The primary data about input-use pattern were collected from small and large farmers who had availed SAC from commercial and co-operative banks and also from those who had not availed SAC. The study has revealed that the net returns realized were considerably higher for SAC availed than for SAC not-availed small and large farmers in both redgram and cotton production. The gross returns were found to be 8.83 per cent for SAC-availed farmers and 7.56 per cent for SAC not-availed farmers in redgram production. In cotton production, the gross returns were found to be relatively higher for both small and large farmers (7.59% and 8.28%, respectively) in comparison with their SAC not-availed small and large farmers. In redgram, the net returns were found to be higher by 10.93 per cent and 11.94 per cent, respectively among small and large SAC availed farmers than of not-availed small and large farmers. In the case of cotton, similar results were observed. The credit utilization pattern of large farmers from both commercial and cooperative banks was 96.97 per cent and 93.26 per cent more towards productive purposes. It was observed that large farmers utilized SAC more efficiently as compared to small farmers in both commercial and co-operative banks.