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Loan repayment behavior of beneficiary farmers in primary agricultural cooperative societies in Haryana (India)

Author

Listed:
  • Singh Suninder

    (Department of Economics, C.M.K. National Post Graduate College, Sirsa (Haryana), India)

  • Singh Abhey

    (Department of Economics, Chaudhary Devi Lal University, Sirsa (Haryana), India)

  • Rani Sumista

    (Regional Institute of Education (A Constituent Unit of NCERT, New Delhi) Bhubaneshwar, India)

  • Rani Mamta

    (Department of Economics, Bhagat Phool Singh Mahila Vishwavidyalaya, Khanpur Kalan, Sonepat, India)

Abstract

Subject and purpose of work The study examined the loan repayment behavior of beneficiary farmers in Primary Agricultural Cooperative Societies in the State of Haryana, India. Material and methods The findings were based on primary as well as secondary data. The secondary data was collected for the period of 2006-2007 to 2018-2019. The primary data was collected in the second quarter of 2022. Results The study concluded that year-wise the maximum percentage of defaulter farmers was 34.97% in 2008-2009 due to the debt relief scheme announced by the Government of India in 2008. Furthermore, it revealed that about 75% of beneficiary farmers repaid their loans regularly after receiving the benefit of interest subvention at 7% by the government of India and the state government. The findings on primary data concluded that most farmers have been repaying their loans regularly, and less than 10% of beneficiary farmers defaulted. The main reason for the default was a loan without security and the anticipation of a loan waive-off scheme. About 19% of beneficiary farmers have been repaying their loans irregularly due to the short time within which loan repayments needed to be made. Conclusions The short time of loan repayment is the main cause of irregular loan repayment behavior. The period of repayment of loans should be extended for one year and it should be considered from the loan issuance date.

Suggested Citation

  • Singh Suninder & Singh Abhey & Rani Sumista & Rani Mamta, 2024. "Loan repayment behavior of beneficiary farmers in primary agricultural cooperative societies in Haryana (India)," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 17(2), pages 347-354.
    • Handle: RePEc:vrs:ecoreg:v:17:y:2024:i:2:p:347-354:n:1009
    DOI: 10.2478/ers-2024-0019
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    More about this item

    Keywords

    repayment behavior; beneficiary farmers; loans; PACS; State of Haryana;
    All these keywords.

    JEL classification:

    • P13 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Cooperative Enterprises
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions

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