International Journal of E Government & E Business Research

International Journal of E-Government & E-Business Research

Online ISSN : 2456-8295

Frequency : Half Yearly

Current Issue : Volume 11 , Issue 1
2026


ABSTRACT

Increasing costs of agricultural inputs by quantum jumps has been making agriculture a losing proposition.  The Productivity and profitability of crop production has been dwindling in real terms.  In view of this, it is necessary to ensure the accessibility and availability of the critical inputs such as i.e. formal agricultural credit, use of modern technology and efficient process of marketing through effective marketing channels for not only improving agricultural productivity but also  to minimize the problem of indebtedness. The marketing channels have been changing and marketing of paddy Primary agricultural Cooperative Society (PACS) is supposed to give favourable incentives to the farmers. Thus an attempt has been made in this paper to analyze the impact of formal sector agricultural credit (short term credit i.e crops loan) on the farm productivity and to assess the impact of paddy marketing through PACS across the farm sizes and villages under study. It is observed that there exists a positive impact of formal agricultural credit on the agricultural productivity and the share of PACS/cooperative bank as a source of institutional credit in rural credit market in providing the short-term credit (i.e. crop loan) is found higher compared to other sources. However despite many efforts and policies of the Govt., there exists ‘credit deficit’ as observed across the farms and villages under study. The marketing channels has been changing and marketing of paddy through PACS has started to provide favourable incentives to the famers, but still the inter-locking (output linked credit market) marketing for paddy is found active in the area under study besides other constraints.   Thus, the PACS may be redesigned as Strategic Business Units (SBUs) to create a viable and sustainable environment for PACS as well as for farmers. These initiatives may be viewed as “Make in India” efforts through cooperative venture in Indian context.

Key Words: PACS, SBU, Agricultural Productivity, Credit Deficit, Procurement System

Int. J. of E-Gov. & E-Busi Res