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Impact of Cooperative Credit on Farm Investment, Production and Income in Some Selected Areas of Mymensingh District.

M. H. Ali
Department of Co-operation and Marketing, Bangladesh Agricultural University, Mymensingh-2202

M. Moniruzzaman
Department of Co-operation and Marketing, Bangladesh Agricultural University, Mymensingh-2202

Abstract/ Executive Summary:

The study was conducted at Fulbaria Upazila of Mymensingh district considering the concentration of boro based deep tube well credit cooperative societies- KSS. Firstly, 10 KSS (Krishak Samabaya Samity) were randomly selected for the study. Secondly, from each of the selected KSS, 10 member farmers (with credits receivers) were randomly selected for the study. Again, for comparing the credit impact of the societies 100 non-member farmers from the same deep tube well operational area of the selected societies were randomly selected for the study. Survey method was used in the study. The primary data were collected from October 2000 to June 2001. Some secondary data were collected from the office records. The main objectives of the study was to determine the impact of cooperative credit on farm production, cost and return of the member-farmers and non-member farmers in the selected areas.

Keywords: Farm investment, Production, Income, Livestock

Location: Fulbaria, Mymensingh

Start Date: 01-07-2002

End Date: 30-03-2003

Program Area: Socio-economic and Policy

Non-commodity: Performance

Objectives:

To determine the impact of cooperative credit on farm production, cost and return of the member-farmers and non-member farmers in the selected areas.

Methodology:

Socio-economic status: That the rate of literacy among the members were about 69 percent while it was 55 percent for same areas non-members where national figure is 32.24 percent (BBS, 1999). The average age of respondents was 47.38 years for members while it was 47.84 years for non-members. The size of family was 5.08 persons for members and corresponding to the non-members it was 4.82 persons. In respect of average size of landholding it was 0.77 hectares for members it was 0.84 hectares and it was 1.09 times of the members. The average annual household income was Tk. 28958.76 for members while for non-members, it was Tk. 32493; the overall average was being Tk. 30745.96. There was no much variation of socio-economic status between cooperative members and non-members under study. Cost and economic return of boro paddy: Total number animal labour used for producing boro paddy per hectare was Tk. 474.66 for the members and Tk. 457.54 for the non-members. The use of power tiller for cultivation is increasing rapidly in the study area day by day. Most of the farmers used power tiller for land preparation. Cost of using power tiller per hectare was Tk. 1582.87 for the members and Tk. 1445.44 for the non-members. This is an important factor for production process which included the cost of seedlings, fertilizers, irrigation and insecticides. Material input cost of the production was Tk. 8044.06 for the members and Tk. 7462.26 for the non-members. Total cost was Tk.13536.97 for producing boro paddy for the members of KSS and that of Tk. 12720.71 for non-members. The members of the cooperative societies incurred cost amount and Tk. 13536.97 per hectare but the non-members incurred Tk. 12720.71 per hectare. It was observed that the members of the cooperatives in comparison to the non-members incurred 6.80 percent more per hectare on boro paddy production because of getting loan timely and easily from the cooperatives. T-test was applied for determining the differences of the costs significantly or not between cooperative members and non-members. Only for the two societies the differences between costs were statistically at 5 percent level of significance. Statistically not significant for the rest of eight societies. But overall differences of costs per hectare were significant statistically at 5 percent level. So, it indicates that the cooperative members invested more money for boro paddy production than non-members; since per hectare cost for the members was higher than the non-members. Per hectare net income for the boro paddy was calculated by deducting the per hectare total costs from the total incomes. The net income from boro production per hectare was Tk. 18528.04 for cooperative members and Tk. 16225.43 for the non-members. The per hectare net income from boro production for the cooperative members was higher by 12.42 percent than the non-members. Only for three societies the differences of per hectare net income between cooperative members and non-members was statistically significant. Overall differences were not significant. Although, the differences of cost were statistically significant, the production was not increased with that production, for this reason the differences of net income became significant. It indicates that there was no significant difference of net income between cooperative members non-members.

Source of Information: BAU. Bangladesh Agricultural University Research Progress, Volume 13, Proceedings of the Workshop 09-10 April 2003, Bangladesh Agricultural University Research System (BAURES), Mymensingh. Bangladesh.

Article Link (Online Journal):

Funding Source:

Total Budget (Tk.) :

Achievement/Findings:

From the study, it was found that rice production, cost and return of the members of the cooperatives in the sample villages were higher (but not so high) than the non-members indicating that there was an institutional positive impact on farm production, cost and income. In the study areas, cooperatives have provided only credit and irrigation facilities to the members. Members reported that if cooperatives provide other facilities like improved seeds, insecticides, improved implements, training than their standard of life would be improved. Therefore, as a policy prescription, it may be noted that for greater utilization of modern farm inputs in order to increase the farm production countrywide, government should take proper care of the cooperatives credit disbursement and utilization including other facilities in time.

Knowledge Management: Report/Proceedings