Loan utilization pattern and constraints faced by paddy farmers in Chandrapur district

Abstract:

The present paper was undertaken to examine the loan borrowing pattern, utilization of agricultural credit, and constraints faced by paddy farmers in Chandrapur district of Maharashtra. Primary data were collected from 90 selected paddy farmers during 2024–2025 through personal interviews using a structured questionnaire. The data were analyzed using tabular and percentage analysis. The findings revealed that institutional sources were the major sources of agricultural credit, with co-operative societies accounting for the highest share of borrowing (35.56%), followed by commercial banks (31.11%) and co-operative banks (15.56%). The overall expenditure on paddy cultivation was ₹48,395.14 per hectare, with an average yield of 31.58 quintals per hectare. The major constraints faced by farmers were difficulty in loan repayment due to crop failure or low farm income (23.33%), low market prices of agricultural produce (20.00%), excessive documentation and paperwork (14.44%), and inadequate loan amounts sanctioned (11.11%). Farmers mainly suggested loan waivers (25.56%), flexible repayment schedules and support during crop failure (18.89%), and adequate loan amounts (15.56%). The study concludes that timely credit, flexible repayment facilities, simplified procedures, and better institutional guidance are essential for effective credit utilization and sustainable paddy cultivation.