an economic analysis of microfinance institutions lending in prakasam district of andhra pradesh

178 Pages·2016·1.49 MB·English

AN ECONOMIC ANALYSIS OF
MICROFINANCE INSTITUTIONS LENDING IN
PRAKASAM DISTRICT OF ANDHRA
PRADESH

By
DDAAYYAAKKAARR GGAANNDDII
B.Sc. (Ag.)

THESIS SUBMITTED TO
ACHARYA N.G.RANGA AGRICULTURAL UNIVERSITY
IN PARTIAL FULFILLMENT OF THE REQUIREMENTS
FOR THE AWARD OF THE DEGREE OF

MASTER OF SCIENCE IN AGRICULTURE
(AGRICULTURAL ECONOMICS)
CHAIRPERSON: Dr. G. RAGHUNADHA REDDY

DEPARTMENT OF AGRICULTURAL ECONOMICS

AGRICULTURAL COLLEGE, BAPATLA.
ACHARYA N.G. RANGA AGRICULTURAL UNIVERSITY
RAJENDRANAGAR, HYDERABAD – 500 030.

2012
DECLARATION
I, Mr. G.DAYAKAR hereby declare that the thesis entitled “AN
ECONOMIC ANALYSIS OF MICROFINANCE INSTITUTIONS LENDING
IN PRAKASAM DISTRICT OF ANDHRA PRADESH” submitted to the
Acharya N.G. Ranga Agricultural University for the degree of Master of Science in
Agriculture in the major field of Agricultural Economics is the result of the
original research work done by me. It is further declared that the thesis or any part
there of has not been published earlier in any manner.

Date : (G.DAYAKAR)
I.D.No. BAM.10-35
CERTIFICATE
Mr. G.DAYAKAR has satisfactorily prosecuted the course of research and
that the thesis entitled “AN ECONOMIC ANALYSIS OF MICROFINANCE
INSTITUTIONS LENDING IN PRAKASAM DISTRICT OF ANDHRA
PRADESH” submitted is the result of original research work and of sufficiently
high standard to warrant its presentation to the examination. I also certify that the
thesis or part there of has not been previously submitted by him for a degree of
any university.

Date : (G.RAGHUNADHA REDDY)
Major Advisor
Place :
Assistant Professor,
Department of Agricultural Economics,
Agricultural College ,
Bapatla.
CERTIFICATE
This is to certify that the Thesis entitled, “AN ECONOMIC ANALYSIS OF
MICROFINANCE INSTITUTIONS LENDING IN PRAKASAM DISTRICT OF
ANDHRA PRADESH” submitted in partial fulfillment of the requirements for the
degree of MASTER OF SCIENCE IN AGRICULTURE in the major field of
Agricultural Economics of the Acharya N.G. Ranga Agricultural University,
Hyderabad, is a record of the bonafide research work carried out by Mr. G. DAYAKAR,
under my guidance and supervision. The subject of the thesis has been approved by the
Student’s Advisory Committee.
No part of the thesis has been submitted for any other degree or diploma or has
been published. The published part has been fully acknowledged. All the assistance and
help received during the course of investigations have been duly acknowledged by the
author of the thesis.

(G. RAGHUNADHA REDDY)
Chairman of the Advisory Committee

Thesis Approved by the Student’s Advisory Committee.
Chairman : Dr. G.RAGHUNADHA REDDY
Assistant Professor,
Department of Agricultural Economics,

Agricultural College ,

Bapatla.

Member : Dr. D. VISHNU SANKAR RAO
Professor& Head,
Department of Agricultural Economics,
Agricultural College ,
Bapatla.

Member : Dr. V. SRINIVASA RAO
Associate Professor and Head,
Department of Statistics & Mathematics,
Agricultural College,
Bapatla.

Date of final viva-voice:
AKNOWLEDGEMENT
“Drops of water hallow out a stone” this study is the outcome of help extended by
many hands.
Acknowledgement is written at last, placed at first and read the least, but still it is
the only opportunity to thank one and who are responsible in completion of the
task in time during the course of study and research.
With regardful memories……….
It would be all envisaging to offer salutions at the feet of the lord, who kindly
imbuted the energy & enthusiasm through ramifying paths of my thick & thin of
the efforts.
First and foremost, I would like to put on record of my heartfelt gratitude
to Dr.G.Raghunadha Reddy, Assistant professor, Department of Agricultural
Economics and esteemed chairman of my advisory committee, for his generous
help, inspiring guidance, timely advice, constant supervision, constructive
criticism, vivid encouragement & affectionate dealing throughout the period of
investigation & during preparation of the manuscript. I confess that it has been a
great fortune and profound privilege for me to be associated with him during my
master degree programme.
I feel inadequacy of words to express my deep sense of gratitude &
profound indebtedness to Dr.D.Vishnu Sankara Rao, professor and Head, Dept.
of Agriculture Economics, the respected member of my advisory committee of his
valuable advice, thought provoking and inspiring guidance, affectionate
encouragement generous help and co-operation during my course of study. He
played a pivotal role in my research and guided to conduct it systematically,
always smoothened many of my hardships & helped me to surge ahead even at a
stumbling blocks.
My diction does not seem to be rich enough to provide suitable words to
articulate my sincere and heartfelt gratitude to Dr. V.Srinivas Rao, Associate
Professor and Head, Department of Statistics and Mathematics, the distinguished
member of my advisory committee for his scholarly advice, sumptuous guidance,
constant encouragement & wise counseling which aided me in completing this
voluminous work.
I sincerely owe my deep sense of gratitude to distinguished faculties of our
department Sri.N. Ankamma Chowdary, Assistant Professor, Dr. K.N. Ravi
Kumar, Associate professor, Dr.K.S.R.paul, Assistant Research Officer, Cost of
Cultivation Scheme, Dr. Ch. Srilatha, Assistant professor, Dr.Y.Radha, Associate
Professor for their excellent teaching & co-operation extended to me during the
course of my study.
I offer the humblest mark of respect & love at the lotus feet of my revered
mother Sri Naga mani and Father Sri Jaya Paul , who always been a light of
energy & enthusiasm. With whose constant ambitious encouragement, support,
affection, sacrifice & blessings, I would not have come up to this stage.
My diction is too poor to translate the gratitude into words the love and
affection showered upon me by my dear brother Jayakar, my sister Dr. Leena
Grace & my cousin Krupakar without which it would not have been possible to
reach this stage.
Words fail to express my heartful gratitude to revered grandpas, Sri Israel,
and grandmas smt. Kotilingamma. Who had been role models of support, love &
affection who had done a lot to bring me to this level are inexpressible in words.
It is friends indeed who share our secrets. It is they who provide crutches
to the crumbling house of confidence & for bearance.
Fruit ful results would not have hastened without the moral support of my
best friends Anusha, Govardhan, Shameer, Raviteja, Ramesh, Jagan, Jayaram,
Mrudula, Mayuri, Siva parvathi, Karthik sudha. I wish to ackonowledge fo them
affection, care encouragement, endurance, help, & love bestowed upon me
throughout the course of my study & research.
It is my pleasure to extend my sincere thanks to my dear friends, Alekhya,
Deepika, Chaitu, Ashwin, Manendra, Gopi, Sravan, Vanoj, Madhu, Basavaraj,
Uday, Venkatesh, Sandeep, Neelambar, Reddy, Rushi, Bala krishna, Najitha,
Niveditha, Indulekha beloved seniors Sita Rambabu, Kishore, Bhanu, Vana
Prasad, Darwin, Vijay kumar, Mohan Rao, Praveen, Sravan, Ashok Babar,
Sandhya, Prabhu Gowda, Gowtam, Koteswara Rao, Tirumala Rao and dear
juniors Farukh, Jeevan, Samba, Srinivas, Siva Nageswara Rao, Rajula Naidu,
Venkatesh, Omkar, Venkata ramana, Ramanamma, Gowthami krishna and
Lavanya.
Iam very much thankful to record assistants, Smt.Saraswathamma &
attenders Sri. Nagireddy and Smt. Venkateswaramma for their help during my PG
programme in the department.
Finally I frankly admit that it is not possible to remember all that faces that
stood behind the façade at this juncture & omission of any names does not mean
lack of gratitudeness.

Date:
Place: (DAYAKAR)
LIST OF ABBREVIATIONS AND SYMBOLS USED
% : Per cent
∑ : Sum of
ADB : Asian Developmental Bank
AP : Andhra Pradesh
BC : Backward class
BMI : Body Mass Index
BPL : Below Poverty Line
CEO : Chief Execuitive Officer
CGAP : Consultative Group to Assist the Poor
CMF : Centre for Micro Finance
CPO : Chief Planning Officer
DRDA : District Rural Development Agency
DSL : Debt Service Liability
DWCRA : Development of Women and Children in Rural Areas
et al. : and others
etc., : et cetera (and the rest)
Fig : Figure
Ha : hectare
i.e. : That is
IKP : Indira Kranthi Padham
JLG : Joint Liability Group
KAWAD : Karnataka Satershed Development Project
Kc : Kendal’s Coefficient
km : Kilo Meter
MACS : Mutually Aided Cooperative Society
M-CRIL : Micro Credit Rating International Ltd
MEPMA : Mission for Elimination of Poverty in Municipal Areas
MF : Marginal Farmer
MFI : Microfinance Institutions
MFIN : Micro Finance Institutions Network
MLR : Multiple Linear Regression
mm : Milli meter
NA : Not Available
NABARD : National Bank for Agriculture and Rural Development
NBFC : Non Banking Finance Companies
NGO : Non Government Organization
NII : Net Incremental Income
NIRD : National Institute of rural development
No. : Number
NREGA : National Rural Employment Guarantee Act
NS : Non Significant
p.a : Per Annum
PD : Project Director
R2 : Co-efficient of Multiple Determinations
RBI : Reserve Bank of India
RRB : Regional Rural Banks
Rs. : Rupees
SC : Schedule Caste
SD : Standard Deviation
SERP : Society for Elimination of Rural Poverty
SGSY : Swarnajayanthi Gram Swarojgar Yojana
SHG : Self Help Group
Sig. : Significance
ST : Schedule Tribe
TDP : Telugu Desam Party
Viz., : namely
LIST OF TABLES
Sl.No Title Page
No
3.1 Sample for the study 39
4.1 Administrative divisions of the district 60
4.2 Rainfall distribution of the district for the year 2009-2010 60
4.3 Minimum and Maximum temperatures of Prakasam district for the 61
year 2010
4.4 Population statistics of Prakasam district in 2000-01 63
4.5 Population particulars- 2001 census 64
4.6 Literacy level -2001 cencus 64
4.7 Distribution of population by workers and non workers 66
4.8 Land utilization pattern of Prakasam district in 2010 67
4.9 Cropping period 69
4.10 Irrigation sources available in Prakasam district 69
4.11 Agricultural implements & farm equipment particulars 70
4.12 Land holding in the district 70
4.13 Livestock and poultry population in the district 72
4.14 Bank branches in the district 72
4.15 Credits & Deposits in Banks 73
4.16 Details of SHG Bank linkage and Pavala vaddi scheme 73
4.17 List of MFIs operating in the district 75