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Role of Credit in Maize (zea Mays L.) Production and Assessment of Food Security in a Selected Area of Bangladesh

Most. Rehana Akter
Junior Officer
Bangladesh Krishi Bank, Bangladesh

Mohammad Ataur Rahman
Department of Agricultural Finance, Bangladesh Agricultural University, Mymensingh -2202, Bangladesh

Md. Rais Uddin Mian
Department of Agricultural Finance, Bangladesh Agricultural University, Mymensingh -2202, Bangladesh

Abstract/ Executive Summary:

Credit provides the means for many farmers to adjust their operations to keep up with the constant changes and, by doing so, to improve their operations. It also contributes to achieve food security of households. Tabular method is used to analyze credit profile, multiple regression analyses are used to determine the impact of credit on maize production and "Modified" OECD scale is used to measure calorie intake level of the 60 maize farming households who has got agricultural credit from Rajshahi Krishi Unnayan Bank in Lalmonirhat district of Bangladesh. Data were collected through field survey by using pre-designed and pre-tested interview schedule. TK. 10500, 26333.33, 92103.77 (US$ 125, 313.49, 1096.47) for small, medium and large categories, respectively, which was 100% of the total applied amount. The total principal received by the household was about TK. 50, 02,500 (US$ 59553.57) and at 9% interest it became TK. 54, 52,725 (US$ 64913.39). The repayment performance of the house- holds was about 100%. It is also revealed from the study that credit had a positive impact on fertilizer demand and irrigation demand and overall a positive impact on maize production. The coefficient of maize production with respect to agricultural credit was 0.081. The elasticity of fertilizer and irrigation demand with respect to credit was 0.016 and 0.543 respectively. The calorie intake situation of the sample households depicts that about 6.67% of the respondents belonged to the ultra-poor whose per day calorie intake was 1481.991 k.cal. About 20% of respondents were hardcore poor whose per day calorie intake was 1722.133 k.cal. The persons belonged to the absolute poor about 21.67% and per capita calorie intake was 1934.605 k.cal. The rest 51.67% belonged to the non-poor group. Different financial institutions should disburse sufficient agricultural credit to fulfill the requirement of the farmers.

Keywords: Bangladesh, Credit, Food security, Maize production

Location: Nijshekhsundor, Parshekhsundor, Moddhogod- dimari and Dalalpara under Hatibandha upazila of Lalmonirhat district

Start Date: 00-07-2017

End Date: 00-06-2018

Program Area: Socio-economic and Policy

Commodity: Maize

Objectives:

To assessing the credit profile, impact of credit on maize production, the calorie intake level of the sample households.

Methodology:

On the basis of higher concentration of maize production, four villages namely Nijshekhsundor, Parshekhsundor, Moddhogoddimari and Dalalpara under Hatibandha upazila of Lalmonirhat district were randomly selected for the study. The random sampling technique was applied for the selection of the sample. A total of 60 different categories of maize farmers was selected from four villages who were the beneficiaries of Rajshahi Krishi Unnayan Bank of Dowani branch. Survey method was followed to collect data from the respondents. Data were collected by the researcher herself through personal interview. The period covered in this study was July 2017 to June, 2018. Data were collected during September to October, 2018. Repeated visits were made to collect the necessary data. In order to explain the effects of different inputs on maize production, multiple linear regression function was chosen on the basis of the theoretical background (Gujarati, 2004). A general specification of the production function was considered by assuming that area under maize production, seed, fertilizers, manure and labour man days have an impact on maize production. When data were tested to check the multicollinearity problem among the independent variables and the researcher found that the variables area under maize production and labour man days significantly correlated with other variables. So the researcher removed these variables from the classical production function.

Source of Information: Archives of Agriculture and Environmental Science 5(1): 18-24 (2020)

Article Link (Online Journal): https://doi.org/10.26832/24566632.2020.050103

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

Credit is important for the improvement of the respondents. It works like a catalyst for maize production. It affects the crop production via input demand and positively influenced by credit. The impact of maize production with respect to credit was positive. Borrowed money has been used to a greater extent for the productive purposes by the loanee farmers. Although they used the loan in productive purposes, they cannot get enough prices of the product or due to the uncertain loss of product they can- not repay their installment on time. The findings revealed that households producing maize have higher income and better food security status than those households who have not been cultivating maize in the study area.

Knowledge Management: Journal