1Department of Agricultural Economics, Agricultural College, Jagtial-505529, Telengana
2Department of Agricultural Economics, College of Agriculture, PJTSAU, Hyderabad-500030, Telengana
*Corresponding author: karuni.karuni@gmail.com
Online published on 22 February, 2021.
The institutional credit extended for marginal and small farmers resulted in increased yields of paddy, cotton and maize, which was established by the significantly higher yields registered by loanee farmers when compared to non-loanee farmers. Alternativey, to understand the contribution of credit to the productivity is by introducing dummy variable in the functional analysis. In paddy, credit is a positive factor increasing productivity by 0.04% at 0.05% probability level. Regression coefficient of credit was highly significant for cotton. Credit again contributed positively to maize yield also and was found to be capital intensive crop.
