Study of Credit Burden on Cotton Cultivators in Nagpur District of Maharashtra

Agricultural credit is expected to play a critical role in agricultural development. Farm credit has for long been identified as a major input in the development of the agricultural sector. In India cotton is an important industrial crop, 24 per cent of the total cotton production is cultured in India during cotton cultivation farmers needs more credit than other traditional crop. The average size of holding for small, medium and large were 1.39 ha, 3.04 ha and 5.92 ha respectively however, the average size of holding of all selected farmers were 2.65 ha. Average cropping intensity was recorded 136.73 per cent. Cotton is major crop in Kharif season in all farmers groups while wheat is the one of the major crop in rabi. Share of cooperative credit were 31.85 per cent to total borrowing. All socio-economic variables where found to be positive relation with amount of loan borrowed whereas the education was negative. About 22per cent of farmers utilized credit for unproductive purpose while 78 were utilized for productive purpose. The average expenditure for cotton cultivation was Rs.31208.70. About 64 per cent of farmers utilized the credit for picking of cotton Small farmer has more debt burden of Rs. 10510.41 than large farmer of Rs. 2707.47 average debt burden was recorded of Rs.7213.85. About 69 percent of farmers experience the major constraint of non availability of loan at proper time.