IMPACT OF KARNATAKA VIKAS GRAMEENA BANK ON AGRICULTURE DEVELOPMENT OF BENEFICIARY FARMERS

Thesis submitted to the University of Agricultural Sciences, Dharwad in partial fulfillment of the requirements for the Degree of

Master of Science (AGRICULTURE) In AGRICULTURAL EXTENSION EDUCATION

By JAYAPRADA B. DASHAWANT

DEPARTMENT OF AGRICULTURAL EXTENSION EDUCATION COLLEGE OF AGRICULTURE, DHARWAD UNIVERSITY OF AGRICULTURAL SCIENCES, DHARWAD - 580 005 JULY, 2007

ADVISORY COMMITTEE

DHARWAD JULY, 2007

(Dr. K. A. JAHAGIRDAR) MAJOR ADVISOR

Approved by : Chairman : __________________________ (Dr. K. A. JAHAGIRDAR)

Members :

1. _________________________ (L.V. HIREVENKANAGOUDAR)

2. _________________________ (K. V. NATIKAR)

3. _________________________ (R.A.YELEDHALLI)

4. _________________________ (ASHALATHA K. V.)

CONTENTS

Sl. No.

Chapter Particulars

Page No.

CERTIFICATE ACKNOWLEDGEMENT LIST OF TABLES LIST OF FIGURES LIST OF PLATES 1. 2. INTRODUCTION REVIEW OF LITERATURE 2.1 2. 2 2. 3 Impact of regional rural banks on Agriculture Development Socio-economic profile of the farmers To study the knowledge and adoption of improved agriculture practices regarding selected crops by beneficiary farmers

3.

METHODOLOGY 3.1 Profile of the study 3.2 Sampling procedure / selection of villages 3.3 Nature and sources of data / selection of respondents 3.4 Variables and their measurements 3.5 Procedure followed in data collection 3.6 Statistical tools used to analyse the data

4.

RESULTS 4.1 Profile of beneficiary farmers of Karnataka Vikas Grameena Bank. 4.2 Impact of Karnataka Vikas Grameena Bank on agriculture development of beneficiary farmers

4.3 Knowledge and adoption level of improved cultivation practices regarding cotton crop by beneficiary farmers 4.4 Problems and suggestions as perceived by the beneficiary farmers 5. DISCUSSION 5.1 Profile of beneficiary farmers of Karnataka Vikas Grameena Bank. 5.2 Impact of Karnataka Vikas Grameena Bank on agriculture development of beneficiary farmers 5.3 Knowledge and adoption level of improved cultivation practices regarding cotton crop by beneficiary farmers 5.4 Problems and suggestions as perceived by the beneficiary farmers. 6. SUMMARY AND POLICY IMPLICATIONS REFERENCES

LIST OF TABLES
Table No. 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. Title Salient features of the study area and sample taluk (2005-06) Table 2: Variables and their measurements Profile of beneficiaries of Karnataka Vikas Grameena bank Mass media participation of beneficiaries of KVG Bank Extension participation of beneficiaries of KVG Bank Social participation of beneficiaries of KVG Bank Impact of KVG Bank on agriculture development of beneficiaries Impact of KVG Bank on agriculture development of beneficiaries Impact of KVG Bank on annual income of beneficiaries Impact of KVG Bank on Assets acquisition of beneficiaries Impact of KVG Bank on consumption pattern of beneficiaries Impact of KVG Bank on land productivity of beneficiaries Impact of KVG Bank on cropping pattern of beneficiaries Impact of KVG Bank on employment generation of beneficiaries Knowledge level of recommended cultivation practices of cotton crop of beneficiaries of KVG Bank Adoption level of recommended cultivation practices of cotton crop of beneficiaries of KVG Bank Problems encountered by the KVGB beneficiaries Suggestions of beneficiaries about financing by KVGB Page No.

16.

17. 18.

LIST OF FIGURES

Figure No.

FIGURES

Page No.

1. 2.

Map of Karnataka showing the study area Profile of beneficiary farmers of Karnataka Vikas Grameena Bank Mass media participation of beneficiary farmers Extension participation of beneficiary farmers Social participation of beneficiary farmers

3. 4. 5.

LIST OF PLATES
Plate No. 1. 2.

Title Researcher is interacting with the beneficiary farmer Researcher is with beneficiary women SHG member who are engaged in leaf plate making Researcher is asking the information about detergent making from womens of SHG groups Researcher is collecting the information from pot maker Researcher is collecting the information from Gram Panchayat President at Ingalahalli KVG Bank Manager handling over tractor key to the beneficiary farmer A view of farmers engaged in brick making unit financed by KVG Bank Beneficiary farmers at dairy unit financed by KVG Bank View of farm machinery implements making unit financed by KVG Bank Beneficiary at idol making unit, a means of assets acquisitions

Page No.

3.

4. 5.

6.

7.

8. 9.

10.

LIST OF APPENDICES

Appendix No. 1. 2. 3. Interview schedule Organizational structure Schemes of KVG Bank

Title

Page No.

1. INTRODUCTION
Improvement in agricultural productivity in India is of paramount importance today, not merely because it provides food and wage goods to the rising population, but also because it ensures a strong base for future development of the industrial sector. It has been very rightly pointed out that the country is poor not because it is agricultural in nature, but in fact, it is so, because its agriculture is backward. Indian agriculture, as is well known has been starved of capital investment, firstly because of poverty or low levels of income of majority of the farming community. And secondly because Indian agriculture has traditionally been considered a way of life and not a business proposition. The main reason for the backwardness of Indian agriculture may be attributed to the neglect of credit provision to the agricultural sector of the economy. To improve the productivity of Indian agriculture and to free the cultivators from the vicious circle of poverty, a breakthrough has to be achieved by supplying adequate amount of investible credit to the cultivators in the country. Providing appropriate finance to the agricultural sector is like, oiling agriculture to make its wheels move swiftly and smoothly. More so in the context of India, which is jam packed with small farmers, who have almost no resources and are in dire need of resources. The problem is big and long standing and unless solved on a sound basis, the existing inadequate, and in many respects, defective system will continue to obstruct the expansion and modernization of agriculture. Making available credit and ensuring its productive use should therefore forms basic planks of any credit policy to foster progressive rural economy. Like any productive activity, agriculture needs financing for its various activities production processes, purchase of inputs, sale of output, improvement in land etc. All these involve payments for which money has to be found out. These needs are there even in the case of traditional agriculture. But, these are much more in relation to agriculture, which is in the process of modernization. Present day trend of increasing application of new agricultural technology has generated a large increase in the demand for credit. The new technology calls for combined and optimal application of several different inputs but the one input that can help the farmer to apply other inputs, is the financial one namely credit (Ravi Kumar, 1989).

Rural credit in India

The century old plight of Indian cultivators particularly in terms of their perpetual and heavy debt burden was first tract traced out very concretely and comprehensively by the All India Rural Credit Survey of 1951-52. The survey revealed that in 1951-52, 7.3 per cent of rural credit was supplied by institutional sources of the government, co-operatives and commercial banks and remaining 92.7 per cent by a host of non-institutional sources comprising professional money lenders, agriculturist money lenders, landlords, traders, commission agents and relatives. The above figures show that during 1951-52, the cultivators were almost totally dependent on non-institutional credit agencies for their credit requirement. The borrowers were subjected to unsurious rates of interest and unfavourable terms and condition of loaning which often led not only to chronic indebtedness but also sale of land for repayment of debt. The interest rates varied from 25 to 70 per cent. Among the institutional credit agencies, co-operatives have a long history of development, dating back to 1904, with the primary object of providing cheap credit to farmers and protecting them from exploitation by the private money lenders. But, it was revealed that the co-operative movement, for many half a century could not achieve more than 3.1 per cent involvement in the total rural credit supply. This was because of a number of shortcomings in

the co-operative movement on rural credit front. First, the coverage of co-operative credit in terms of primary co-operative societies and co-operative membership was too inadequate to fill up the gap of different types of credit requirement. Secondly, the management of cooperative societies at the village level was concentrated in the hands of some big farmers who enjoyed lions share of credit from the societies. Finally, the co-operative credit was not at all supervised, so that it could be put to productive use. The rate of default was high. Thus, the basic weakness of the co-operative movement could be traced to human factors i.e., lack of serious participation by the members who were supposed to be alert and responsible both in the matter of taking loans, their productive use and timely repayment. Since, the effort to increase the percentage of rural credit supply by co-operatives was not very encouraging, as it is evident from the surveys conducted by Reserve Bank of India, steps have been taken by the government of Indian, to induce commercial banks to play a vital role in supplying credit to agricultural sector. Commercial banks have started financing the agricultural sector from 1950. But, they could nor make significant dent on the agricultural development. Since, their advances were found more profitable in commerce and industrial sectors. Commercial bank too had their weakness. Even with much increased network of rural branch offices, the commercial banks could not reach out to the interior and rural hinterlands. The commercial bank continued to use the deposits mopped up by their rural branches for meeting the credit need in urban areas. The review committee on Regional Rural Banks observed that the agricultural credit by the commercial bank has been additive and has not helped to cover the geographical areas not having the availability of credit facility from the co-operatives (RBI, 1978). The high cost structure and lack of rural orientation was their major handicaps. Over the years, the productivity, efficiency and profitability of the system have suffered. The Banking Commission in 1972 mooted the proposal for setting up of some sort of rural banks. It recommended such banks for compact group of villages. The government of India also felt that it was necessary to establish new institutions on the basis of altitudinal and operational ethos entirely different from that of the public sector banks. In pursuance of this st view, the Government of India appointed a working group on Rural Bank on 1 July 1975 under the Chairmanship of Sri. Narasimham to examine in-depth setting up of new rural banks as subsidiaries of the public sector banks to cater to the financial requirements of rural people. The committee recommended for establishment of Regional Rural Bank which should be state sponsored, regionally based, rural oriented and with the blend spirit of co-operatives as well as business outlook of the commercial banks. Focused attention was given to rural lending and weaken section by identifying the poorest among the poor with appropriate subsidy linked government programmes, thereby dependence of the rural people on credit from commercial banks and co-operative societies has increased. The beneficiaries, however, diverted funds for social obligation and unproductive purposes and could not even manage their livelihood. The RRB, which form the third constituent of the multiagency credit system for agricultural and rural development were intended to focus exclusively on the small, marginal farmers, agricultural labourers and rural artisans. The first five banks established in four different states commenced functioning from second October 1975. The basic philosophy underlying the establishment of RRB was to combine in them the local feel and familiarity with rural problem and the co-operative and the modern business, organization, commercial discipline of business, ability to mobilize deposits, access to central markets and modernized outlook which the commercial bank possessed. The formation of RRB is another step to exclusively meeting the credit needs of the rural population. Inspite of vagaries of nature like failure of monsoon, occurrence of floods etc. some RRBs have been functioning profitably and are economically quite viable. As on 31 March 1999, there were 196 Regional Rural Banks operating in 451 districts with a network of 14,475 branches. Their outstanding advances stood at Rs. 9860.8146 crores and the total deposits amounted to Rs. 17,970.19 crores.
st

In Karnataka as on 31st March 1999, there were 13 RRB operating with a network of 1,074 branches and their gross loan and advances stood at Rs. 1,369,62 crores and the total deposits mobilized at Rs. 1,614,55 crores Hosamani,(1995).

Establishment of KVG Bank

Karnataka is the 8th largest state in the country. It comprises of 27 districts and 176 taluks. The rural population in Karnataka is around 248 lakhs, which forms about 60 per cent of the total population of the state. The Karnataka Vikas Grameena Bank that has emerged after the amalgamation of the four erstwhile Grameena Banks with its area of operation spread over nine districts, now caters to 1/3rd of the geographical area of the state and thereby has earned the opportunity of serving a larger section of the rural populace. The area of operation is a pot pourri of varied cultures and traditions as well as climatic conditions. Viewed from the developmental angle, except for the coastal districts of Uttara Kananda, Udupi and Dakshina Kannada, the other six districts of North Karnataka can be classified as backward districts. Large parts of the population still remain outside the banking fold. It is thus, the endeavour of the Bank to go down the micro level to reach the unreached through vigorous implementation of Financial inclusion. During the year under review, it had succeeded in achieving 100 per cent financial inclusion in 600 villages of Bagalkot, Haveri and Udupi districts, which form part of the area of operation. In its second year of existence as on 31/03/07, the bank was able to garner a total business of Rs. 4398.78 crores recording a growth of 20 per cent over March 2006. The total deposits were Rs. 2230.38 crores and advances Rs. 2168.40 crores recording growth of 16.34 per cent and 23.91 per cent, respectively. The government has decided to restructure 49 RRB. The committee for restructuring consisted of representative of RBI and the NABARD and the chairman of four public sector banks. The Malaprabha Grameena Bank, Varada Grameena Bank and Netravati Grameena Banks etc., which were working under 9 districts were merged and became Karnataka Vikas th Grameena Bank on 12 September 2006 (Anon.,2005).

Extension activities undertaken by KVG bank

Extension activities conducted by the branches not only help in creating awareness among the farming community about the technological developments in the agricultural sector but also act as a forum to project the banks various loan/deposit schemes. Thus, bank firmly believed that progress of the clientele is linked to the Banks progress. To improve the quality of advances and to create an environment for proper end-use of the loans is the cutting edge of extension activities. Therefore, during the year under report, various extension programmes were conducted not only by the bank but also in association with NABARD, Agriculture and Rural Development Foundation, Syndicate Institute of Rural Development and other Institutions. Some of the activities undertaken were enumerated below.

a) Customers meet
Almost all the branches had conducted customers meet during the year under report. The customers were informed about the new schemes of the bank as well as changes taking place in the banking field.

b) Seminar, camps etc.

Bank encouraged farmers in its area and operation to switch over traditional farming to modern methods. Towards this end seminars/workshops/trainings were conducted by branches on topic such as horticultural crops, banana culture, vermiculture, apiculture, rainwater harvesting etc.

c) Training on self employment for youth

The branches identified suitable candidates and sponsored them to the numerous training programmes held by Syndicate Institute of Rural Development (SIRD) and Rural development and self employment training institute (RUDSETI). The trained candidates are enthused to take up self employment by extending bank finance to become self reliant and gainful.

d) Grameena pratibha puraskar

The bank has recognized meritorious students in the rural areas by awarding cash prize for the students, who passed SSLC examination.

e) Adoption of schools
Providing basic education to the children of slum area for developing them into good citizens is also one of the concern of the bank. Bank had adopted 25 backward school in association with Akshara Foundation in nine districts.

Objectives of KVG Bank

To continue as the leading and visible Grameena Bank in the country by acting as a catalyst for the growth of agriculture/allied and non-farm activities. To accelerate leading and reach out to all needy customers to pursue gainful vocation and thus enable them to maximize returns for a decent living and more so committing to liberate vulnerable sections from the clutches of money lenders. To build a vibrant and proactive financial institution with staff committed to serve by adopting improved technological inputs and products to drive improved business growth. To motivate and encourage savings and channel the same for disbursement of credit to achieve alround development of people of nine districts in Karnataka true to its name Karnataka Vikas. These banks which have helped not only in the expansion of rural credit, but also mobilization of rural saving and modernization of rural economy. This has significant impact on agricultural development. In view of the above divergent views, the present study has been taken up with the objective stated below.

Specific objectives
1. To study the profile of beneficiaries. 2. To analyse the impact of Karnataka Vikas Grameena Bank on agriculture development of beneficiaries. 3. To study the knowledge and adoption of improved agriculture practices regarding selected crops by beneficiaries farmers. 4. To know the problems and suggestions as perceived by the beneficiaries.

Need and importance of the study

For the success of every new institution, there should be periodic appraisal and evaluation of what iss being done so that suitable changes can be made to make the functioning of the institution, more effective. After nationalization, the Regional Rural Banks were started by commercial banks, specially to cater to the needs of rural people. Here, the motto of Regional Rural Banks was same i.e., serving the rural people more effectively. So, a impact study of these institutions would establish their individual roles in farm financing. Further, a impact study of this kind would clearly establish. How bank is more successful in its job and they are operating in nearby areas. In addition, this study throw light on the weak points in the functioning of the institutions and thus helps in their rectification for future implementation. Keeping the above points in view, the present entitled Impact of Karnataka Vikas Grameena Bank on agriculture development of beneficiary farmers was taken.

Scope of the study

Bank are not mere money lenders but are also powerful instruments of social change. Hence, their duty to ensure that desirable change is to be brought about in the farming community from time to time. A impact study of this nature about identified institutions involved in the same job was first of its kinds. Hence, insights provided by this study would help the personnel involved in planning of rural based financial institutions. The findings of the present study would help them to modify the policies and procedures, which in turn help in improving agricultural development strategies.

Limitations of the study

1. The study was undertaken by a single investigator and as such, the work had the constraints of time, finance and other resources.

2. The universe of investigation was restricted to one block of one districts. As such generalization of the results of the study could only be restricted to the area under investigation in particular and the areas where similar conditions prevail in general. 3. Since, most of the data and information were based on the verbal responses of the respondents the chance of bias is there. Further. It is also likely that some of the answers might not fully and correctly reflected the inner thoughts and aspirations of the respondents about farm financing operations of banks. 4. The other limitation of study lies with the inadequacy of the sample. This being a student project, it was not possible to take large sample.

2. REVIEW OF LITERATURE
It could be appropriate to review some of the works done by the former researchers in the field of Karnataka Vikas Grameena Bank n Agriculture development by beneficiary farmers to prepare a suitable background for the present study. It helps to acquire a broad general background in the given field. It provides basis for theoretical framework and insight into methods and procedures of research. Since very few related studies are available on profile borrowers of Regional Rural Banks 2. 1 2. 2 2. 3 2. 4. Impact of Karnataka Vikas Grameen Bank (KVGB) on agriculture development of beneficiaries Profile of beneficiaries Knowledge and adoption of improved agriculture practices regarding selected crops by beneficiaries Problems and suggestions as perceived by the beneficiaries

As stated earlier, due to paucity of past research studies, the reviews could not be presented in all these aspects however, the reviews relevant to some of the characteristics of beneficiary farmers towards agriculture development are represented below

2.1

Impact of Regional Rural Banks on Agriculture Development

Singh et al. (1978) study revealed that RRB Parrukhabad concentrated mostly on crop loans followed by loans for the purchase of milch animals, loans to small businessmen and rural artisans. It did not advance any amount for the purchase of tractor or installation of tube wells. The recovery performance was most unsatisfactory. They concluded that RRBs and commercial banks are the new entrants in the field of rural finance and lack trained and experienced personal having rural background which had also adversely affected the recovery situation. Suryawanshi et al. (1978) studies the availability and requirement of credit and the gap existing in agricultural finance in an irrigated tract of Jalagaon district in Maharashtra. They observed that the big farmers received a larger share of the loans advanced. Hence, the institutional agencies like the co-operatives and commercial banks had not made much impact on the small and semi-medium cultivators even in the irrigated area. The average cash expenditure worked out to Rs. 814. 18 per hectare. A slightly declining trend in the credit gap was noticed with an increase in the size of the holding. Shivaprasad (1980) conducted a study in Shimoga district of Karnataka to know the impact of Syndicate Bank finance on farm income and to proper optimum cropping pattern for the sample farmers using linear programming technique. He found that through resources reorganization with higher by Rs. 1174. 39 for small and 9935. 05 for large farmers. The opinion survey indicated that majority of the farmers were satisfied with the credit operation of the bank such as the time taken to sanction the loan, time spent by the farmers to obtain loan and procedure adopted for sanctioning the loan. He concluded that Syndicate Bank finance had helped the farmers to augment the net farm income. Jain and Sarawgi (1981) study is to assess the impact of farm loans on farm production, income and employment of selected tribal farmers in Dindori block of Mandla district of Madhya Pradesh found that there was 43. 04 per cent increase in the total farm production with loan facilities. The total income of borrowers before loan which accounted for 28 per cent increase in the total income of borrowers. They concluded that the farm credit had the positive impact in rising the farm production and income in the area of their study. Mishra et al. (1981) studied the impact of farm loans on the net farm income of the farmers in Shahpur of Jabalpur district, Madhya Pradesh. Their study revealed that before taking the crop loan the net farm income was Rs. 246366, Rs. 417760 and Rs. 417760 and

Rs. 819930 are small, medium and large size group, respectively with loan it increased to Rs. 338993, Rs. 6548. 60 and Rs. 1253596, respectively on the three size groups of farmers. It was concluded that the change in the net farm income was due to the crop loan which resulted increase of cropping intensity and ultimately the yield. Chauhan et al. (1991) studied the availability and adequacy of credit, its use by borrowers and impact on rural income and savings with specific reference to the operations of RRBs. Data were collected from four RRB branches randomly selected in the Etawah district of Uttar Pradesh. Borrowers were divided into four categories small and marginal farmers, landless labours and rural artisan and small traders. Results for the year 1984/85 showed that the availability of credit per borrower was the highest for landless labour, however, it was found that the demand for loans exceeded the supply by about eight per cent for the other three categories of borrowers. Further, it was found that 35 per cent of total loan were put to unproductive use to the urgent consumption needs particularly in landless labour and a very little surplus income existed within the sample ranging from 7 to 16 per cent for the average household. It was credit activities and schemes to encourage the mobilization of saving among the rural poor. Malik and Mittal. (1991) studied the performance of RRBs in Haryana, particularly with respect to their role in promoting rural development. Since 1976, branch expansion, deposit mobilization and credit deployment were analysed. It as found that RRBs have made considerable progress in all the areas but they were force with maintaining losses due to over dues and default. Sinha (1991) studied the financial status of Regional Rural Banks (RRBs) which were setup in India by the government in order to build credit links between financial institutions and rural areas and indicated the need of fund management within the banks. The creation of deposits, the use of funds and interest rate policies were reviewed. It was recommended that RRBs, by offering higher interest rates, should mobilize resources and encourage the creation of deposits. The banks were also urged to invest in approved securities as part of a long-term strategy. Some other measures were also suggested for more efficient operation of RRBs. Balishter et al. (1992) studied the performance of the Etawah Kshetriya Gramin Bank, in Uttar Pradesh for the period 1984 to 1988. The success was assessed in terms of eight criteria: coverage, growth in deposit and deposit accounts, composition of deposits, total loan advances, loan advances to the weaker sections of the rural community, purpose wise loan advances, recovery position, profit and loss account. It was found that the bank was relatively successful in deposit mobilization, particularly from the weaker sections of rural society through small savings accounts. Eventhough the bank is maintaining a 2:1 ratio in financing agricultural and non-agricultural activities in accordance with Reserve Bank of India guidelines, it was felt that the loan advances to rural cottage industry, still, must be promoted. Recovery performance was found to be unsatisfactory and even though the losses have fallen over the study period, greater efforts were required to turn the bank into a financially viable and self-sustaining initiative. Pramod kumar (1993) studied the progress and performance of the RRBs in India based on selected performance indicators such as number of RRBs, number of branches, districts, covered, deposits and different categories of advances. For this purpose secondary data. were collected from the RRBs division, NABARD, fur a period of eleven years from 1979-80 to 1989-90. He found that the RRBs should mobilise deposits in order to increase the amount. further he mentioned that with increase in coverage for states, the quantum of loan per account for allied activities and short-term loans would decrease. He found that states like Orissa, Kerala, West Bengal, Tamil Nadu, Tripura, Bihar, Kamataka and Assam had shown bad performance and the other states were performing well. He suggested that the bad performing states should step up their advances of agricultural investment and also see that adequate short-term loans are advanced as a much needed backup for the fanners. Gadgil (1994) discussed the likely impact of financial sector reforms on the formal agricultural credit system in India. Movements of interest rates on agricultural loan over the period 1980-94 are studied. It was observed that the new rates on crop loans to farmers have

not been high enough to enable Co-operative and Regional rural banks (RRBs) to meet the financial transaction and risk costs, necessitating continued subsidization by the National Bank for Agriculture and Rural Development (NABARD) / Reserve Bank of India. The researcher then discussed the restructuring of RRBs and rural branches of Commercial banks and the future role of NABARD under the situation of total deregulation of interest rates. Hosmani (1995) studied the Performance and impact of a RRB, (Malaprabha Grameena Bank) in Karnataka. A multistage stratified random sampling procedure was used for selecting the requited samples. The pattern of credit flow was analysed using Kendall's coefficient of concordance and the inequality index (Gini coefficient) was used to know the extent of concentration. A comparative assessment has also been made for the period of establishment and period of development. He found that liquidity ad solvency position of the bank was sound. The pattern of credit flow to beneficiaries remained unchanged as indicated by significant Kendall's Coefficient of Concordance (0. 90) and Gini Coefficient (0. 12) indicated a lower inequality in credit distribution among beneficiaries. Operating NRI account, export financing, procedure simplification, credit enhancement, long run planning and periodical evaluation were some of the recommendations made for enhancing the performance of grameena banks. Deshpande et al. (1998) studied the impact of deregulation of interest rates in turning the loss making RRBs to profit making institutions. A sample of 15 RRBs were taken for the study and the information was obtained for the period 1996-97. They found that impact of deregulation of interest rates on profitability was felt more strongly via advances (through increased interest cost) compared to decomposits (through increased interest income) compared deposits (through possible reduction in interest cost) and the combined impact on both advances and deposits on profitability was found to be limited. Ruston Ali Ahmed (2004) study conducted on impact of financing by Rajshahi Krishi Unnayan Bank on agricultural development of Bangaldesh has revealed that variations in farm and off farm production, income from agro-based trade, intensity of cropping, amount of cultivated area of uncommon crops, total and per capita consumption expenditure of the borrowers are found statistically significant higher than the non-borrowers. On the other hand, insignificant relations of working capital investment for farming and use of inputs with demand of bank credit are observed in case of small and large farms, but those are found significant in case of medium farmers credit delivery procedures and services of the sample bank do not satisfy the expectations of the borrowers. The study embodies that, the major problems associated with the bank financing are diversion of the borrowed fund, poor recovery of loans and high default rate, which are attributed to both the borrowers and the bankers.

2. 1. 1 Dimensions of Agriculture development 1. Land productivity

Abhasharma (2001) reported that increase in income, living conditions, increase in productivity of the corps over the previous year was due to the effective participation of beneficiaries in watershed development programme. Sridhar (2002) revealed that increase in productivity directly depend son the availability of water productivity in the pre-post project period by virtue of implementation of DWDP. It could be informed that percentage increase in productivity obtained by the farmers was considerably higher over pre project period.

2. Annual income
Phadtare et al. (1992) conducted a study on drip irrigation farmers ill Sangli district of Maharashtra and reported that out of every 10 farmers, six had annual income upto Rs. 50, 000 while one fifth of farmers had income ranging from Rs. 50, 000 to one lakh. Chandran (1997) conducted a study on tapioca growers of Ernakulam district in Kerala and found that 33. 33 per cent of the respondents belonged to low income category,

while 40. 00 and 26. 67 per cent were under medium and high income category respectively. Vedamurthy (2002) in his study on arecanut growers of Shimoga district in Karnataka noticed that 48. 66 per cent of the respondents belonged to high income category, while 34. 00 per cent and 17. 34 per cent were noticed in medium and low income category respectively. Shashidhara (2003) in his study revealed that 42. 44 per cent of the respondents belonged to medium level of income (Rs. 1-2 lakh) and in low income category 30. 00 per cent of respondents were noticed, whereas 27. 70 per cent of the farmers belonged to high income group. Shashidhar (2004) conducted a study on drip irrigation farmers in Bijapur district of Karnataka and reported that, 49. 17 per cent of the farmers belonged to medium income category. The above studies revealed that, more number of farmers belonged to medium income category.

3. Asset position / Asset acquisition

Gupta et al. (1982) conducted a study in Karnal district on the landless agricultural labourers observed that next to livestock, the important component of the labourers assets was livestock shed and then consumer durables like cycle, radio and charpoys (cots) claimed the residual investment of the landless labour households. Indravati et al. (1992) conducted a study in two villages of Hissar district revealed that more than half of the respondents (52. 00%) were having very few material possession. Hosamani (1993) in a study in selected villages of Bailhongal taluk of Belgaum district revealed that five per cent of the families were having tractor, followed by power sprayer (4. 00%), pump set (3. 00%), truck and tempo (each 1. 5%). From the above studies it could be concluded that majority of the respondents possess common agricultural implements and only few had improved agricultural implements like iron plough, sprayer, harrows, tractor, etc.

4. Consumption pattern
Bellwinkel (1973) revealed that on an average 56. 00 per cent of the total wages of contract workers of Delhi was spent on food and clothes and 16. 00 per cent on items not specified by workers, presumably alcohol and status articles. Halim (1984) noticed that the major portion of expenditure (97. 00%) in the families of women labourers of Bangladesh was spent on food items. Only negligible amount of money per year was spent on buying cloths. Subramanyam et al. (1986) found that three hand loom workers (1. 50%) of Andhra Pradesh were not in a position to spent more than Rs. 100 per month on food. About 74 per cent were however spending from Rs. 100 to 300 in a month on food. Biradar (1992) conducted a study in Hubli-Dharwad, Karnataka, and revealed that the average monthly expenditure pattern of the women workers whose income was less than Rs. 11500 per annum was food item (70. 00%) followed by clothing (14. 0%), miscellaneous items (5. 00%), house work (3. 00%), medical expenses (2. 505), recreation (1. 60%) and education (0. 50%). Whereas, the average monthly expenditure pattern of the respondents whose income was above Rs. 11, 500 per annum was that they spent maximum proportion of their income on food items (63. 00%) followed by clothing (12. 00%).

5. Cropping pattern
Krishnakumari and Swaminathan (1992) examined the changes in cropping pattern, crop combination, crop area and diversification of crop enterprises in Tamil Nadu. The results revealed that the changes were mainly due to change in agricultural inputs that the changes were mainly due to change in agricultural inputs high yielding varieties, fertilizers, pesticides, irrigation intensity and tractor use. The analysis indicated that in the western and northwestern regions modernization was low because of low rainfall, poor soils and poor irrigation facilities. Gajja et al. (1994) analysed the productivity variation and land irrigability in Kakrapar canal command area in Gujarat State. The results showed that the farmers in the command area allocated large acreage to high water requirement crops like sugarcane and rice as compared to low water requirement crops like sorghum, bajra, cotton and wheat because they had high profitability and low yield uncertainty than the latter ones. The cropping pattern was dominated by sugarcane accounting for about 60. 0 per cent of the total cultivable command area as compared to 14. 3 per cent in the suggested cropping pattern. Wheat occupied only 2. 0 per cent of the area as against 12. 5 per cent in the suggested cropping pattern As cropping pattern is based on soil water relationship, they opined that diversion from the suggested cropping pattern could lead to salinity and water logging which ultimately leads to a decline in farm production. Vivekananda and Satyapriya (194) in the study of changes in cropping pattern in Karnataka State during the period between 1956-57 to 1989-90 observed negative association between area and productivity growth. This suggested a change in cropping pattern. This was evident from the pattern of change in area and productivity of maize, wheat, cotton, bajra, oilseeds and sugarcane. The changes in cropping patter were induced by their relative prices/profitability rather than by productivity. One feature observed was that the expansion of irrigation resulted in the lowering of instability in output. This situation apparently, led to a shift in the cropping pattern in favour of high value crops, particularly non cereal crops. According to Vyas (1996) the most important factor determining the cropping pattern was the market. The significant changes in the last few years in the cropping pattern were inferred to be explained by changes in the relative prices. Apart from agronomic conditions in a given region, the most significant technological change which had remarkable impact on the cropping pattern was irrigation. In most of the areas where irrigation was introduced the cropping pattern had become more diversified, especially so if there was proper regulation of water delivery.

6. Employment generation
Kanthraju (1986) study conducted in Bangalore district of Karnataka results indicated that a highly significant in the employment potentials of the beneficiaries of crop enterprises, sericulture, dairying, sheep rearing and poultry farming was noticed due to the direct participation in Lab-to-Land programme over a period of two years. Dhyani et al. (1989) Dehradun dist. U. P. It was observed that adopted the farmers of Lab-to-Land programme received about (45.0%) higher annual family income than nonadopted farmers. Further, it was reported that the agricultural laborers could be engaged for 165 days on an adopted farms. as against 105 days work on non-adopted farms. Dhyani et al. (1990) Fakot district. , U. P. it was reported that 17, 880 mandays of casual and 1, 01, 060 mandays of regular employment increases was noticed through various activities such as rainfed agriculture. Horticulture, irrigation development. fule-fodder plantation and other measures. Deshpande and Ramakrishna (1990) in their study on the impact of irrigation on income and employment in Krishna Raja Sagar Project in Karnataka, have noted that the human labour input increased in the range of 10 to 252 man-days per hectare, depending upon the choice of alternative crop. If any new area is brought under irrigation, this range

extends employment from 82 to 368 man-days. Mourya (2001) in a study conducted in Madhya Pradesh revealed that there was no desirable impact of forestry sector scheme under special component plan on employment generation. An over whelming majority of 71. 72 per cent forestry sector beneficiaries had got wage employment for 4-15 days only, about 22. 55 per cent got employment for 16 to 30 days. There was only one beneficiaries out of 200 beneficiaries who got wage employment for 120 days in the study area.

2.2 Socio-economic profile of the farmers

Age
Ravikumar (1989) conducted study on A Comparative Study of farm financing by a Regional Rural Bank and an Agricultural Development Research of a Commercial bank was found that majority 68.34 per cent of RRB borrowers belonged to middle age group followed by 16.66 per cent were old age group remaining 15 per cent were young in case of ADB borrowers majority 60.00 per cent middle age group followed by young and old age group. Sheela (1991) conducted a study in Bidar district on dairy practicing women and reported that 55. 86 per cent of the women were middle aged, 30. 17 per cent were young and only 13. 97 per cent belonged to the old age group. Vijaya Kumar (1997) conducted a study in Bangalore district and indicated that, 38 per cent of the rose growers belonged to the young age group, whereas 45 per cent of them belonged to middle age group and only 17 per cent of them belonged to old age group. Angadi (1999) conducted a study in Bagalkot district of Karnataka state and reported that, majority (65%) of the pomogranate growers were middle aged. The respondents below 35 years of age were 18. 75 per cent while 16. 25 per cent were of old age. Shashidhar (2004) reported that majority of the respondents fell under middle age (48. 33%) category followed by young age (31. 66%) and old age (20. 00%) groups. It could be inferred from the above studies that, majority of the farmers belonged to middle age group.

Education
Ravikumar, G , (1989) reported that 50 per cent of the RRB borrowers had primary level education and 20 per cent illiterates and 5 per cent college education with regards to ADB borrowers 45 per cent primary level education followed by 36. 66 per cent illiterates and 10 percent college education and 8.34 per cent secondary education. Karpagam (2000) conducted study in Tamil Nadu state found that majority of the respondents were educated upto high school (29. 17%) followed by middle school (19. 17%) and only 1. 77 per cent of the respondents were post graduate. Dhamodaran and Vasanth Kumar (2001) found that majority of the respondents (35. 83%) had high school education, followed by middle school (25. 00%), primary (16. 67%) and collegiate level (15. 00%). Venkataramalu (2003) in his study in chilli growers in Gutur district of Andhra Pradesh revealed that majority of them studied up to primary school (25. 83%) followed by illiterate (22. 50%) and high school. From the above review of literature, it could be inferred that, majority of the farmers had education upto middle school to high school level.

Land holding
Ravikumar (1989), conducted study on A Comparative Study of farm financing by a Regional Rural Bank and an Agricultural Development Research of a Commercial bank was found that majority of the respondents were small land holders followed by marginal land holders (31. 66%) and few (16. 67%) were high land holders Raghuprasad (1992) in his study on sericulturists reported that 86. 0 per cent of the respondents were big land holders followed by small land holders (10. 67%) and few (3. 33%) were marginal land holders. Naik (1993) conducted a study on awareness of farmers in different seed supply agencies in Dharwad district stated that 43. 75 of the respondents belonged to big farmers category, followed by 30. 42 and 25. 83 per cent of the respondents as small and marginal land holders, respectively. Angadi (1999) in his study in Bagalkot district of Karnataka found that, majority of the pomegranate growers (62. 50%) had medium farm size and 31. 25 per cent had big farm size. Only 6.25 per cent had low land holding. Karpagam (2000) conducted a study on turmeric growers in Erode districts of Tamil Nadu observed that, majority of the respondents (40. 83%) had medium land holding and 31. 66 per cent of the respondents had semi medium land holding. Natikar (2001) in his study reported majority of the subscriber (63. 00%) farmers belonged to big farmers category with land holding of more than 25 acres, whereas 21, 11 and 4. 4 per cent belong to medium semi-medium and small farmers category, in respect of their land holding. Raghavendra (2005) conducted study on knowledge of improved cultivation practices of sugarcane and their extent of adoption by farmers in Bhadra command area in Davangere district , Karnataka and found that, majority of the respondents belonged to medium land holding (48. 75%) followed by semi medium land holding category (30. 00%). From the above studies, it could be concluded that, majority of farmers had semi medium land holding.

Cosmopoliteness
Ravikumar (1989) conducted study on A Comparative Study of farm financing by a Regional Rural Bank and an Agricultural Development Research of a Commercial bank was found that majority of the respondents had medium urban contact and visit occasionally to the near by cities, taluka places and district.

Mass media participation

Patil (1995) noticed that 47. 50, 20. 00 and 18. 75 per cent of commercial growers of sunflower were daily users of radio, television and newspapers, respectively. On the contrary, 43. 75, 25. 00 and 3. 75 per cent of seed producers were regularly using radio, newspapers and television, respectively. Saravanakumar (1996) observed that 23. 33. per cent of the mango growers of Dharmapuri district subscribed for news paper and farm magazines and read them regularly, while 42. 50 and 42. 86 per cent of the respondents regularly listened and viewed the agricultural programmes, respectively. Shashidhara (2003) in his study reported that 41. 11 per cent of the respondents belonged to medium level of mass media participation, followed by low level 35. 56 per cent of mass media participation, whereas 23. 33 per cent of respondents were noticed in high mass media participation Venkataramalu (2003) indicated that 22. 50 and 74. 17 per cent of the respondents

possessed radio and television respectively. Among them 10. 00 and 4. 17 per cent of them regularly listeners of news and entertainment form radio, 55. 83 and 26. 00 per cent of them were regular viewers of news and adverstiment from television. Further, it was reported that 41. 67 and 28. 33 per cent of the respondents regularly read news paper and success stories of farm magazines, respectively. Moulasab (2004) conducted study on mango growers of North Karnataka and found that, 74. 17 per cent of the respondents are subscribers of television followed by 32. 50 and 6. 67 per cent of the respondents possess farm magazines and news papers, respectively. Among these, 43. 33 per cent of the respondents are occasional viewers of television.

Extension participation
Saravanakumar (1996) observed that majority of the respondents never participated in various extension activities namely, demonstration (83. 34%), training programmes (70. 83%) and discussion meeting (67. 50%), only 68. 33 per cent and 54. 17 per cent of the mango growers participated occasionally in field day and conducted tour, respectively. Angadi (1999) in his study on pomegranate growers in Bagalkot district of Karnataka reported that, majority of the respondents had not participated in various extension activities (98. 76%), group meetings (75. 23%) and training programmes (72. 50%). Only 43. 75 and 38. 13 per cent of the respondents participated regularly in 'method demonstration' and 'Krishimela' respectively. Venkataramalu (2003) indicated that majority of the farmers participated in discussion with village extension workers (70. 00%), Krishimela (62. 50%) and some exhibitions on agriculture (61. 67%). Raghavendra (2005) conducted study on knowledge and adoption level of post harvest technology by red gram cultivators in Gulbarga districts and found that, 24. 66 per cent of the respondents were participated regularly in agricultural exhibitions, demonstrations (22. 67%) conducted in their villages. Shashidhar (2004) conducted a study on drip irrigation farmers of Bijapur district and revealed that, 45. 83 per cent of the respondents participated in group meetings followed by exhibition (41. 66%) and 18. 33 per cent of the respondents participated in Krishimela.

Risk orientation
Ravishankar (1995) in his study observed that 65 per cent of the respondents had mediu level of risk bearing capacity followed by high (20. 00%) and low (15. 00%) level of risk orientation respectively. Vedamurthy (2002) in his study on arecanut growers of Shimoga district in Karnataka reported that, 45. 33 per cent of areca growers belonged to medium category followed by 38. 00 per cent of them had high risk orientation and 16. 66 possessed low risk orientation. Venkataramalu (2003) reported that majority of the farmers had medium level of risk bearing (73. 33%) capacity. Shashidhar (2004) revealed that majority of the farmers (70. 83%) had medium level of risk bearing ability and low (15. 00%) level of risk orientation. From the above studies it can be concluded that, majority of the farmers had medium risk bearing capacity.

Credit orientation
Patil (1994) in his study knowledge of jawar, cotton and sugarcane cultivation plant. reported that, 45. 33 per cent of farmers belonged to medium category followed by 38. 00 per cent of them had high credit orientation and 16. 66 possessed low credit orientation

2. 3 To study the knowledge and adoption of improved agriculture practices regarding selected crops by beneficiary farmers
2. 3.1 Knowledge of farmers about recommended cultivation practices of cotton
Nimji et al. (1990) observed that (60. 00%) of cotton growers had medium knowledge about different cultivation practices. while (21. 00%) and (19. 00%) of the farmers had low and high levels of knowledge respectively. regarding cultivation of cotton crop. Kalasriya et al. (1998) conducted a study in Bhavanagar district of Gujarat and reported that (69. 30%) of hybrid-6 cotton growers had medium level of knowledge, where as (11033%) of respondents had high level of knowledge about improved cotton cultivation technology. Meti (1990) reported that (60. 00%) of cotton growers in Tungabhadra command area had medium knowledge level, whereas (22. 08%) of farmers had high knowledge level of cotton cultivation practices, but (19. 56%) of farmers had low knowledge level. Bheemappa (2001) found that majority (38. 00%) of migrant farmers have knowledge about choosing right varieties, spacing, use of recommended dose of fertilizers and plant protection chemicals whereas 62. 00 per cent of non-migrant farmers have knowledge about the choosing right varieties, use of herbicides, recommended dose of fertilizers with respect to cotton crops.

2.3.2 Adoption level of cotton growers about recommended cultivation practices

Nikhande and Kale (1991) conducted a study on buldana district of maharastra and observed that there was higest adoption gap in seed rate (36. 32%)followed by fertilizer application (31. 04%), plant protection measure (30. 03%)and the least gap (20. 39%)in using of manures among the cotton growers. Kalasriya et al. (1998) found that there was maximum technological gap in practices like soil treatment (95. 16%)followed by plant protection measures (64. 33%), irrigation (39. 16%), seed treatment (36. 66%)chemical fertilizer (29. 66%), sowing time (28. 33%), seed rate (25. 16%), preparatory tillage (7. 66%), harvesting (7. 665), spacing (5. 50%), organicmanure (4. 00%)and interculturing and weeding (2. 83%). However no technological gap was observed in the method of sowing, Further the distribution of cotton growers in the overall gap revealed that (76. 67%)had medium technological gap followed by high (16. 00%)and low (9. 33%)technological gap Bheemappa (2001) observed that 32. 00 per cent of migrant and 62. 00 per cent of non-migrant farmers adopted practices like seed treatment, spacing, recommended use of fertilizers, use of plant protection chemicals, use of herbicides and interculturing practices of cotton crop.

3. METHODOLOGY
This chapter deals with the description of the study area, salient features of the selected branches of Karnataka Grameena Vikas Bank (KVGBs), the sampling procedure employed the nature and sources of data and the various tools and techniques employed to analyse and quantify the data at the end of the chapter a few concepts are defined and explained to facilitate a clean understanding of the issues with which the present study is concerned. The methodology is presented under the following major heads. 3.1 3.2 3.3 3.4 3.5 3.6 Profile of the study Sampling procedure / selection of villages Nature and sources of data / selection of respondents Variables and their measurements Procedure followed in data collection Statistical tools used to analyse the data

3.1

Profile of the study

The study is conducted in Dharwad districts is purposively selected for the study where the KVGBank Head office is located and it is situated in western sectors of northern part of the Karnataka state. Belgaum and Gadag districts surround it in the north, Haveri district in the south and Uttara Kannada district in the west. The district is divided into three belts geographically viz., Malnad, Transition and Dry regions. Dharwad taluk surrounds by Hubli taluk in the southeast and Belgaum district in the north. Hubli falls in the northern part of Dharwad district. It is surrounded by Naragund taluk in the north, Gadag taluk in the east, Dharwad taluk in the west and part of Kundagol taluk in the south, Kalaghatgi taluk falls in the southern part of Dharwad district. It is surrounded by Hubli and Dharwad taluk in the north, Kundagol and part of Hubli taluk in the east and Uttara Kannada and Haveri district in the south (Dharwad district at a glance).

3.1.1 Geographic and demographic features

Dharwad district has an area of 4,263 sq. kms. Dharwad taluk has an area of 1,032 sq. kms. Hubli and Kalaghatgi taluk have an area of 6.31 and 682 sq. kms, respectively. As per 2001 census, the total population of Dharwad district was 16, 04,253. Total population of Dharwda taluk was 218961 and that of Hubli and Kalaghatgi taluk was 12, 83,80 and 13,70,16, respectively. The density of population in Dharwad district was 376,321 sq. kms. The density of population in Dharwad, Hubli and Kalaghatgi taluk was 213 sq. kms, 204 sq. km and 201 sq. kms, respectively (Dharwad district at a glance, 2005) (Table 1).

3.1.2 Soils
Soils in Dharwad district comprised of red, medium, black and deep black soils. Similar type of soils were found in Dharwad taluk, Kalaghatgi taluk mostly comprised of red and medium black soils and in Hubli, major part of soils comprised of deep black cotton soils.

3.1.3 Rainfall
The southwest monsoon is most crucial for Dharwad district. Average rainfall of the district was 969 mm; Kalaghatgi taluk has an average annual rainfall of 1172 mm, whereas Dharwad and Hubli taluk receive an average annual rainfall of 905 mm and 1496 mm, respectively (Anon., 2006).

3.1.4 Land utilization pattern

The land utilization pattern of Dharwad, Hubli and Kalaghatgi taluk was as follows. The net sown area of Dharwad taluk was 111788 ha and that of Hubli and Kalaghatgi taluk

Fig.2: Map of the Dharwad district (study area)

Researcher is interacting with the beneficiary

Research is gathering the information from beneficiary farmer

Research is asking the information about detergent making from women of SHGgroups

Research is collcting the information from pot maker

Table 1: Salient features of the study area and sample taluk (2005-06) Taluks Sl. No. Particulars Dharwad district Dharwad 1. 2. 3. Geographical area (sq. kms) No. of inhabited villages Total population in 00s (2001 census) Rural population Urban population Female population Male population Population density Normal rainfall (mm) Actual rainfall (mm) 4263 372 1604253 1032 110 218961 Kalaghatgi 682 88 137016 Hubli 631 58 128380

4. 5. 6. 7. 8. 9. 10.

722336 881917 781049 823204 377 772 969

202671 16290 106722 112239 219 838 905

122336 14680 66236 70780 201 939 1172

128380 18793 62380 66000 207 693 1496

Source : Dharwad district at a glance, 2005-06 District Statistical Office, Dharwad were 73707 ha and 68757 ha, respectively. The area under forest was 13676 ha in Dharwad taluk and 19526 ha in Kalaghatgi taluk and forest cover was seen in Hubli taluk was 2033 ha the fallow land accounted for 8046 ha in Dharwad taluk and 351 ha in Kalaghatgi, 8049 ha in Hubli taluks. About 6402 ha of land was found to be of available for cultivation in Dharwad, Kalaghatgi and Hubli taluks was 3490 ha, 1494 ha and 758 ha, respectively.

3.1.6 Area irrigated by different sources

The major sources of irrigation in Dharwad district are canals, tanks and wells. However, the canal irrigation was not found in Dharwad and Kalaghatgi taluks. In Kalaghatgi and Dharwad taluks, major sources of irrigation are borewells and wells. The total area irrigated in Dharwad, Kalaghatgi and Hubli taluks was 5915 ha, 5721 ha, 4170 ha, respectively.

3.2

Selection of villages

In selection of villages, the criteria followed is that, in Dharwad the Karnataka Vikas Grameena Bank, Head Office is located and this bank is working in nine districts with its 391 branches covering 2070 villages. In Dharwad district, three taluks were selected that is Dharwad, Hubli, and Kalaghatgi were purposively selected based on the highest number of

Researcher is collecting the information from Gram Panchayat President at Ingalahalli

Researcher is with beneficiary women SHG member who are engaged in leaf plate making

Researcher with beneficiary farmers infront of KVGB branch office, Ingalahalli

Researcher is gathering the information at KVGB branch office Varur

Table 2: Variables and their measurements

Variables

Measurements

Dependent variables 1. Agriculture development dimensions a) Annual income b) Asset acquisition c) Consumption pattern d) Land productivity e) Cropping pattern f) Employment generation 2. Knowledge and adoption Independent variables a) Age b) Education c) Land holding Chronological age in completed years, procedure followed by Prita (2001) Procedure developed Trivedi (1963) Classification prescribed by Dept. of Economics and Statistics, Govt. of Karnataka (1992) Procedure followed by Raghavendra (2005) Procedure followed by Raghavendra (2005) Scale developed by Siddarmaiah and Jalihal (1980) Procedure followed by Raghavendra (2005) Procedure developed by Supe (1969) Scale developed by Beal and Sibley (1967) Classification as suggested by Ministry of Rural Development, Govt. of India. Procedure followed by Hosamani (1995). Procedure followed by Hosamani (1995). Procedure followed by Deepak (2001) Procedure followed by Abhasharma (2001) Procedure followed by Shivasharanappa (1995) Procedure developed for the study and followed by Raghavendra (2005)

d) Cosmopoliteness e) Mass media participation f) Extension participation g) Social participation h) Risk orientation i) Credit orientation

branches as criteria 12, 17 and 7 branches, respectively. Three KVG Bank branches from each taluk were selected for the study taking into a consideration the performance of branches.

3.3

Selection of respondents

From each selected branch, a list of farmers was prepared with the help of Karnataka Vikas Grameena Banks Branch manager and Agriculture Officer. Then 16 beneficiaries were randomly selected from each branch. The total sample size constituted 144 respondents.

3.4

Variables and their measurements

3.4.1 Dependent variables

3.4.1.1 Dimensions of agriculture development Based on the past reviews and discussion with experts, the dimensions of agricultural development were finalized. The dimensions of agriculture development includes, annual income asset acquisition, consumption patter, land productivity, cropping pattern and employment generation.

3.4.2

Quantification of variables

3.4.2.1 Dependent variables 3.4.2.1.1 Agriculture development dimensions The data pertaining to the different dimensions of agriculture development before and after borrowing the loan from KVG Bank is collected from the borrowers is analysed through frequency and percentages. The difference with frequency and per cent is calculated. The quantification followed for each of the dimensions is described as under.

a) Annual income
Annual income of the respondents determined by considering total income earned by agriculture, agro-based subsidies and business in one year and expressed in terms of rupees. To study the impact of annual income on agriculture development, the data with respect to annual income of the respondents before and after taking loan was elicited and based on the data collected, the difference and per cent change were calculated. To know the significant impact on annual income the quantification of variable is as follows.

Before Annual income Low Semi-medium Medium High Categories F Upto 17,000 17,.001 to 34,000 34,001 to 51,000 Above 51,000 %

After F %

Difference F %

b) Asset acquisition
Asset acquisition of beneficiaries was determined by considering the assets acquired such as land, building, farm machinery equipments, livestock and financial assets and expressed interms of rupees. To study the impact of KVG Bank on asset acquisition on agriculture development. The data pertaining into the asset owned before and after taking loan from KVG Bank is elicited and difference is calculated for each of the items. Asset acquisition further analysed by categorizing the beneficiaries into low, medium and high by using mean and standard deviation as measure of check. Further, to know the improvement in asset position respondents categorized based on minimum and maximum values with respect to major assets.

c) Consumption pattern
Consumption pattern is determined by considering the expenditure on items such as food, clothing, religious functions and marriages, medical, education and personal expenditure was obtained from the respondents. Further, consumption pattern was categorized as low, medium, high with mean and standard deviation as measure of check. To assess the impact of consumption pattern was further analysed before and after taking loan from KVG Bank by categorizing the beneficiaries based on minimum and maximum values.

d) Land productivity
In the present study only major crops viz., cotton and groundnut were considered. Land productivity means the quantity of yield obtained per unit area expressed in quintals per acre. The ability of the beneficiaries in growing different crops related to

agriculture like cotton and groundnut was elicited. The land productivity was categorized as low, medium, high with mean and standard deviation as check. To study the impact of KVG Bank on land productivity before and after taking loan from the Bank was analysed by categorizing the beneficiaries based on minimum and maximum land productivity value.

e) Cropping pattern
Cropping pattern is the diversification of crops grown by beneficiaries during different seasons like kharif, rabi and summer information was obtained. The information collected before and after was analyzed with frequency and percentage. Further, the cropping pattern was analysed to study the extent of impact by categorizing the beneficiaries based on different cropping pattern in kharif, rabi and summer seasons using frequency and percentage.

f) Employment generation
Employment generation is the number of days the respondents worked on the farm expressed in mandays. The data pertaining to before and after borrowing the loan from bank was obtained and categorized as low, medium and high using mean and standard deviation as measure of check. Further, employment generation was analysed by categorizing the respondents based on minimum and maximum values before and after borrowing loan.

3.4.2.1.2 Knowledge and adoption level of recommended cultivation practices of cotton crop a) Knowledge level of recommended cultivation practices of cotton crop
It refers to the factual information possessed by farmers regarding recommended cultivation practices of cotton. The Teacher made test suggested by Anastasi (1961) was employed to measure the knowledge level of respondents. All the important operations of cotton cultivation were listed separately in consultation with the experts. The questions and answers were carefully framed by referring to the package of practices of the University of Agricultural Sciences, Dharwad. The answers elicited from the farmers were quantified by giving 1 score to correct and 0 to wrong answers. Based on the response obtained, the knowledge level was quantified by using frequency and percentage.

b) Adoption of recommended cultivation practices of cotton crop

It refers to the adoption of recommended cultivation practices of cotton by the beneficiaries as recommended by the UAS Dharwad package of practices book. All the important operations in cotton cultivation were listed. A total number of 15 common recommended practices were selected based on the judgment of the specialists. The proper answers for these items were obtained with the help of package of practice book and cotton specialist of the University of Agricultural Sciences, Dharwad was quantified.

3.4.2 Independent variables 3.4.2.1 Age

It referred to the chronological age of the respondents in completed years at the time of investigation. The procedures followed by Raghavendra (2005).

Category Young Middle Old

Age (years) 18 30 31 50 Above 55

3.4.2.2 Education level

It is operationalized as the extent of formal education undergone by the rural farmers. The respondents were grouped into different categories based on frequency and percentage. The procedure followed by Vijay Kumar (1997) and also followed by Raghavendra (2005).with slight modification was adopted. Education Illiterate Primary school (1st 4th) Middle school (5 7 ) High school (8 10 ) PUC Graduate Post graduate
th th th th

Score 0 1 2 3 4 5 6

The maximum and minimum score obtained were 6 and 0, respectively.

3.4.2.3 Land holding

It refers to the number of acres of land possessed by the farmers. The criterion prescribed by the Karnataka Land Reforms Act 38 of 1966 (Part B), 99, 195-96 under section 2(a) 32 as one acre of irrigated or garden land was equivalent to 3 acres of dry land. The criterion prescribed by Ministry of Rural Development, Government of India vide th circular No. 280-12/16/19 RD-III (Vol. II) dated 15 November 1991 and as followed by Shashidhara (2003) was used and followed by Raghavendra (2005).The respondents were grouped into different categories. Category Marginal farmers Small farmers Semi-medium farmers Medium farmers Big farmers Land holding (in acres) Upto 2.50 2.51 5.00 5.01 10.00 10.01 25.00 Above 25.00

3.4.2.4 Cosmopoliteness
It is the degree to which an individual is oriented outside to his immediate social system. The cosmopolite farmer is likely to be a unique individual, in that he is motivated to look beyond this environment when most others are content to maintain a localistic frame of reference. Two dimensions of the variable considered in this case were; 1. The frequency of visit to the nearest town 2. The purpose of visit to the town

Above two dimensions indicated extent of cosmopoliteness of the respondents were quantified by using frequencies and percentage and the procedure as followed by Shashidhar (2004) and this method was adopted by Raghavendra .(2000) was used in this study.

3.4.2.5 Mass media participation

It refers to the extent to which the farmer is exposed to different mass media such as newspaper, radio, farm magazines and television. The procedure suggested by Trivedi (1963) and followed by Raghavendra (2005) with little modification was followed for measuring mass media participation of the respondents. Sl. No. 1. 2. 3. Subscription Organizations Yes 1 radio 1 1 No 0 0 0 Frequency of participation Regularly Occasionally 2 2 2 1 1 1 Never 0 0 0

Reading newspaper Listening to programme farm

Reading farm magazines, extension leaflets or any other literature on agriculture or horticulture Watching TV programmes relating to agriculture activities

4.

3.4.2.6 Extension participation

It refers to the extent of participation of farmers in different extension activities. This variable was quantified by following the procedure as used by Raghavendra (2005) with slight modification. A list of extension activities was prepared and the respondents were asked to indicate their extent of participation in each of the activity. The scoring procedure followed was as follows. Sl. No. 1. 2. 3. 4. 5. 6. Regularity of attending Activities Regularly Training programmes Demonstrations Field visits Groups meetings Exhibitions Education tour 2 2 2 2 2 2 Occasionally 1 1 1 1 1 1 Never 0 0 0 0 0 0

The data obtained was calculated by frequency and percentage.

3.4.2.7 Social participation

It is the degree of involvement of the respondents from more membership to organizational positions and their active participation in the activities of local formal organization like Gram Panchayat, Taluk Panchayat, Zilla Panchayat, Farmers Service CoOperative society etc. This was quantified using the procedure followed by Trivedi (1963) and as followed by Raghavendra (2005) with slight modifications. The items and weightages used were as under.

Sl. No. 1. 2. 3. 4. 5. 6.

Items

Member

Nonmember 1 1 1 1 1 1

Participation on the activities of organization R O 1 1 1 1 1 1 N 0 0 0 0 0 0

Village panchayat Co-operative society Youth club Farmers forum Taluk Board Development

2 2 2 2 2 2

2 2 2 2 2 2

Any other institution

The data obtained was further quantified by using frequency and percentages.

3.4.2.8 Risk orientation

Risk orientation was operationalized as the degree to which the farmer is oriented towards risk and uncertainty in facing problems in farming. In the present study, risk orientation of respondents was measured with the help of a scale developed by Supe (1969) and as followed by Raghavendra (2005) was used. The scale contained six statements of which first and fifth statements were negatively keyed. Modification in the scoring procedure was made by giving a weightage of 2 for the Yes response and 1 for No response for positive statement. This was reversed in case of negative statements. The aggregates of weights over six statements were the total score of a respondent for this variable. The possible score ranges from 6 to 12. Based on the total score obtained by the respondents on risk talking ability, the respondents were grouped into three categories, keeping the mean and standard deviation as measure of check. Category Low Medium High Score < Mean - SD Mean + SD > Mean + SD

3.4.2.9. Credit orientation

This refers to the favorable and positive attitude of farmers toward obtaining credit from institution and other sources. The measurement and scoring procedure suggested by Beal and Sibley (1967) was used. This method was adopted by Raghavendra (2005). Category Low Medium High Score < Mean - SD Mean + SD > Mean + SD

The grand total was arrived at by adding the scores assigned to the respondent in each of the above item. The scores added for all the items formed the credit orientation score of respondents. The maximum and minimum scores that could be obtained by the respondents were 11 and 0, respectively. The mean score of the respondent was considered for all purpose of analysis. Higher score depicts favorable attitude of farmers towards obtaining credit.

3.5

Procedure followed in data collection

The following instruments were used for the collection of data and information.

3.5.1 Interview schedule

The mechanics of interview schedule were studied before the preparation of schedule based on which interview schedule was prepared keeping in view, the objectives of the study. Before applying in actual conditions, the interview schedule was presented by administering the same under similar conditions other than the sampling area. Defects noted were rectified and final schedule was prepared vide appendix-I. The interview schedule consisted of four parts. The first part dealt with the information on personal and socio-economic background of the respondents. The second part was ment for knowing the impact of KVGB on Agriculture Development of beneficiaries. The third part dealt with the knowledge and adoption level of improved agriculture practices regarding cotton crop. The fourth part dealt with problems and suggestions as perceived by the beneficiaries.

3.5.2 Establishment of rapport

Establishment of rapport with the farmers is an important step in the collection of data. A number of preliminary visits were made with the help of officials of Karnataka Vikas Grameena Bank and also had discussion with the officials of different hierarchy. And also made in depth study by making use of annual reports and other brochures of the bank by visiting head office. The purpose of study and importance of their co-operation for the success of the study was made clear to the farmers during these visits. This helped the investigator to establish friendly relations with the local people and gain their confidence and the willingness to respond property.

3.5.3 Method of data collection

The data was collected by administering the pre-tested interview schedule to the selected respondents. The farmers were personally interviewed which enabled the investigator to get the first hand information and gave an opportunity to observe the respondents personally. It was made sure that the questions were correctly understood by the respondents by asking the questions in Kannada, the local language and repeating questions, whenever necessary. Friendly, atmosphere was maintained during the interviews to see that the respondents were at ease and expressed their opinion freely and frankly. The data so collected were recorded directly on the schedule.

3.5.4 Preparation of the rapport a) Analysis of data

The data thus collected were coded, analyzed and presented in Tables to make the findings more meaningful. The findings of the data were suitably interpreted and finally necessary conclusions and inferences were drawn.

3.6

Statistical tools used in the study

The data collected was analysed using the following statistical tools. 1. Arithmetic mean 2. Standard deviation 3. Frequency and percentage 4. Paired t test

3.6.1 Arithmetic mean

It is the sum of all the values of the observations divided by the total number of observations, symbolically, it is represented as; X= Where, X X W

X N

: Arithmetic mean

: Sum of all values of observations : Total number of observations

3.6.2 Standard deviation (SD)

It is the square root of the mean of the squares deviations taken from arithmetic mean; symbolically it is represented as follows. d2 N : Standard deviation : Sum of squared deviations from the mean : Number of observations

SD = Where, SD d2 N

3.6.3 Frequency and percentage

Frequency and percentage were used to know the distribution pattern of respondents according to variables. Percentages were used for standardization of size by calculating the number of individuals that would be in a given category if the total number of cases were 100.

3.6.4 t test
t test was employed to find out the significant difference, if any between the mean score of two groups.

(X1) (X2)
T=

Where, X1 X2

S12 n1 +

S22 n2

: Mean of X1 series : Mean of X2 series : Differences between the two means taken as positive. : Variance of X1 series : Variance of X2 series : Total number of observation in X1 series : Total number of observations in X2 series

(X1) (X2) S12 S22 n1 n2

4. RESULTS
The data collected during the investigation were analysed, interpreted and the findings were presented under the following headings. 4.1 4.2 4.3 4.4 Profile of beneficiaries of Karnataka Vikas Grameena Bank. Impact of Karnataka Vikas Grameena Bank on agriculture development of beneficiaries Knowledge and adoption level of improved cultivation practices regarding cotton crop by beneficiaries Problems and suggestions as perceived by the beneficiaries

4.1

Profile of beneficiaries of Karnataka Vikas Grameena Bank

Beneficiaries (Borrowers) of Karnataka Vikas Grameena Bank were categorized into different groups based on their profile presented in the following subheadings.

4.1.1 Age
On the basis of chronological age, the respondents were classified into three groups as shown in Table 3. It can be seen from the Table 3 and Fig. 2 that majority (68.75%) of the respondents were in middle age category whereas 19.45 per cent were in old age category and 11.81 per cent were young farmers.

4.1.2 Education
The respondents have been categorized into six groups based on their level of education. Results revealed that majority (36.90%)of the respondents farmers had middle school level education followed by (22.30%) of beneficiaries studied upto high school level, (16.70%) studied upto primary level, (15.30%) studied upto PUC level and very less percentage (2.78%) of them were graduate(Table 3).

4.1.3 Land holding

The results depicted in Table 3 indicated the distribution of farmers based on the extent of land possessed by them. It is evident from the table that 34.60 per cent were large farmers, followed by 33.40 per cent of them were medium farmers and 28.50 per cent of respondents were small farmers and 3.50 per cent beneficiaries were marginal farmers.

4.1.4 Cosmopoliteness
The Cosmopoliteness is analyzed with respect to their frequency of visits and Purpose of visits to the nearest town. Results revealed that 51.38 per cent of the respondents were medium cosmopolite followed by 41.67 per cent of beneficiaries were high cosmopolite and by 6.95 per cent of farmer were low cosmopolite in nature (Table 3).

4.1.5 Mass media participation

It can be observed from Table 3, to be 65.96 per cent of beneficiaries that were belongs medium mass media participation category followed by 25.70 per cent and 8.34 per cent of beneficiaries have in high and low mass media participation category respectively.

Table 3: Profile of beneficiaries of Karnataka Vikas Grameena bank (N = 144) Sl. No. 1. Characters Age Categories Young age (18-30 years) Middle age (31-50 years) Old age (above 50 years) Illiterates Primary Middle school High school PUC Graduate Marginal farmers (upto 2.5 acres) Small farmers (2.6 5.0 acres) Medium farmers (5.0 - 10.0 acres) Large farmers (above 10.0 acres) Mean 10.5; SD 8.741 Low (<11.72) Medium (11.7212.13) High (>12.13) Mean 11.93; SD-0.466 Low (<1.82) Medium (1.822.12) High (>2.12) Mean 12.8; SD 2.112 Low (<16.55) Medium(16.5518.49) High (>18.49) Mean 17.52; SD 2.28 Low (<7.38) Medium(7.388.91) High (>8.91) Mean 8.15; SD 1.79 Low (<25.83) Medium (25.83-28.21) High (>28.21) Mean-27.03; SD-2.880 Low (<1.049) Medium (1.049-1.952) High (>1.952) Mean-1.50;SD-1.063 Number 17 99 28 9 24 53 32 22 4 5 41 4 50 Percentage 11.80 68.75 19.45 6.25 16.70 36.90 22.30 15.30 2.78 3.50 28.50 33.40 34.60

2.

Education

3.

Land holding

4.

Cosmopoliteness

10 74 60 12 95 37 30 47 67 20 106 18 54 25 65 24 86 34

6.95 51.38 41.67 8.34 65.96 25.70 20.80 32.70 46.50 13.88 73.62 12.50 37.50 17.37 45.13 16.60 59.70 23.70

5.

Mass media participation

6.

Extension participation

7.

Social participation

8.

Risk orientation

9.

Credit orientation

4.1.6 Extension participation

It is evident from the Table 3 that, 46.50 per cent had high extension participation followed by 32.70 per cent had medium participation in extension activities whereas 20.80 per cent had low extension participation.

4.1.7 Social participation

A close observation of Table 3 reveals that 73.62 per cent of the respondents had medium social participation followed by 13.89 per cent had low social participation and 12.50 per cent had high social participation

Age Old 19% Young 12%

Middle 69%

Education PUC 15% Graduate 3% Illiterates 6%

Primary 17%

High school 22%

Middle school 37%

Land holding Large farm 22% Small farm 43%

Medium farm 35%

Fig.2: Profile of beneficiaries of Karnataka Vikas Grameena bank

Mass media participation High 26% Low 8%

Medium 66%

Extension participation

Low 21%

High 46%

Medium 33%

Social participation High 12% Low 14%

Medium 74%

Fig.2 : Contd.

Cosmopoliteness Low 7% High 42%

Medium 51%

Risk orientation Low 37% High 46%

Medium 17%

Credit orientation High 24% Low 17%

Medium 59%

Table 4: Mass media participation of beneficiaries of KVG Bank (N = 144) Reading / Listening / Viewing habit Sl. No. Categories Subscriber /owner Regular Frequency 1. Newspapers 13 88 Percentage 61.11 Occasionally Frequency 47 Percentage 32.64 Never Frequency 9 Percentage 6.25

2.

Farm magazines

27

33

22.91

79

54.80

32

22.30

3.

Book on agriculture

11

7.64

46

31.95

87

60.50

4.

Extension literatures

2.09

29

20.14

112

77.80

5.

Radio

32

69

47.92

68

47.30

4.86

6.

Television

99

138

95.90

2.74

1.38

100 90 Reading/Listening/Viewing behaviour (%) 80 70 60 50 40 30 20 10 0

Regular

Occasionally

Never

Newspapers

Farm magazines

Book on agriculture

Extension literatures

Radio

Television

Mass media Fig. 3: Mass media participation of beneficiary farmers

Fig. 3: Mass media participation of beneficiaries

Table 5: Extension participation of beneficiaries of KVG Bank

Degree of participation Sl. No. Extension activities Regular Frequency 1. 2. 3. 4. 5. 6. 7. 8. 9. Training programmes Demonstrations Educational tours Field days Group discussions Film/slide shows Agriculture exhibitions Krishimela Campaigns 55 30 10 2 13 3 70 129 0 Percentage 38.20 20.90 6.95 1.30 9.03 2.01 48.60 89.59 0 Occasionally Frequency 78 82 49 22 98 39 62 15 16 Percentage 54.20 56.80 34.03 15.30 68.06 27.00 43.00 10.42 11.10 Never Frequency 11 32 85 120 33 102 12 0 128 Percentage 7.60 22.30 59.02 83.40 22.91 70.90 8.40 0 88.90

90 80 Degree of participation (%) 70 60 50 40 30 20 10 0

pr og ra m m e

Regular

Occasionally

Never

D em on str at io n Ed uc at io na lt ou r

tu re ex hi bi tio n

di sc us sio n

sh ow

Tr ai ni

G ro up

Fi lm /sl

ng

Extension activities Fig. 4 Extension participation of beneficiary farmers

Fig.4: Extension participation of beneficiary farmers

A gr ic ul

K ris hi

Ca m pa ig n

Fi el d

id e

m el a

da y

Table 6: Social participation of beneficiaries of KVG Bank (N = 144) Degree of participation Sl. No. Categories Members Nonmembers Office bearer Regular Freq. 1. Village panchayat 41 (28.50) 100 (69.50) 77 (53.50) 3 (2.09) 3 (2.09) 4 (2.78) 0 (0.00) 0 (0.00) 5 (3.48) 26 % 18.06 Occassionally Freq. 34 % 23.70 Freq. 84 Never % 58.80

2.

Co-operative society

64 (45.90)

27

18.70

41

28.50

76

52.80

3.

Youth club

53 (36.90)

87 (60.50)

36

25.00

20

13.90

88

61.20

4.

Farmers forum

7 (4.87) 0 (0.00) 5 (3.48)

137 (95.20) 144 (100)

2.80

5.60

132

91.70

5.

Taluk development board Any other institutions

0.00

2.09

141

97.20

6.

134 (93.06)

5.60

0.69

135

93.80

100 90 80 Social participation (%) 70 60 50 40 30 20 10 0

Regular

Occasionally

Never

Village panchayat Co-operative society

Youth club

Farmers forum

Taluk development board

Any other institutions

Categories Fig. 5: Social participation of beneficiary farmers

Fig.5: Social participation of beneficiary farmers

4.1.8 Risk orientation

It can be observed from Table 3 that, 45.13 percent of the respondents belonged to high risk bearing ability category, whereas 37.50 and 17.37 per cent of them had low and medium risk bearing ability category respectively.

4.1.9 Credit orientation

It can be concluded from Table 3 that, 59.70 per cent of the respondents belonged to medium credit taking ability category, whereas 23.60 and 16.60 per cent of them had high and low credit taking ability category, respectively.

4.1.10 Mass media participation

It can be observed from the Table 4 that 99 respondents were owning television and 95.9 per cent of them watch T.V. programmes. Further 32 respondents owing radio sets and 47.92% of them listen to radio regularly. Again 27 respondents having subscription to farm magazines and 22.91 per cent of them reading regularly.

4.1.11 Extension participation

The results in Table 5 depict the extension participation of beneficiaries of Karnataka Vikas Grameena Bank revealed that, large majority (89.59%) of respondents have participated in Krishimela regularly followed by 48.60 per cent of them in Agricultural Exhibitions. Further 38.20 per cent of the respondents had participated in regular training programmes. On the other hand 68.06 per cent of respondents participated in group discussions occasionally followed by 56.80 per cent of them in demonstrations. It is interesting to note that, about 88.90 per cent of respondents never participated in campaigns.

4.1.12 Social participation

A close look at the result presented in Table-6 reveals that, 45.90 per cent of respondents were members of cooperative societies and 18.70 per cent of them participated regularly. Followed by 41.00 of respondents were members of Gram panchayat and 18.06 per cent of them participated regularly, where as 58.80 per cent and 52.80 per cent of respondents never participated in Gram panchayat and co-operative society meetings respectively.

4.2

Impact of Karnataka Vikas Grameena Bank on Agriculture Development of Beneficiaries

4.2.1 Distribution of respondents based on their dimensions of agriculture development

The results depicted in Table 7 clearly indicated the significant impact of KVG Bank on agriculture development of beneficiaries. The results were analysed with respect to six dimensions of agriculture development before and after borrowing loan from KVG Bank. The different dimensions of agriculture development viz., annual income, asset acquisition, consumption pattern, land productivity, cropping pattern and employment generation were categorized as low, medium and high for each of the dimensions. It was observed from Table 7 that, medium annual income category, there was increase from 48.70 per cent before borrowing loan to 58.30 per cent after taking loan. Similarly, in high annual income category 16.70 per cent before to 27.80 per cent after taking, so it clearly indicated the positive impact on annual income in agriculture development. With respect to asset acquisition, 72.30 per cent of respondents were in medium category before taking loan, whereas only 22.30 per cent of the beneficiaries wherein medium category after borrowing loan. It was further observed that in high asset acquisition category

Table 7: Distribution of respondents based on the dimensions of agriculture development n=144 Before % 34.80 48.70 16.70 6.95 72.30 20.80 41.70 37.60 20.90 After F 20 84 40 6 32 106 20 40 84 % 13.90 58.30 27.80 4.20 22.30 73.70 13.90 27.80 58.40 Difference F % 30 14 16 4 72 76 40 14 54 20.90 9.80 11.20 7.00 50.00 52.80 27.80 9.80 37.50

Variable Annual (Rs.) income

Categories Low (less than mean -0.425 SD) Medium (between mean + 0.425 SD) High (more than mean +0.425 SD) Low (less than mean -0.425 SD) Medium (between mean + 0.425 SD) High (more than mean +0.425 SD) Low (less than mean -0.425 SD) Medium (between mean + 0.425 SD) High (more than mean +0.425 SD)

50 70 24 10 104 30 60 54 30

Asset acquisition (Rs.)

Consumption pattern (Rs.)

Land productivity (q/ha) a) Cotton Low (less than mean -0.425 SD) Medium (between mean + 0.425 SD) High (more than mean +0.425 SD) Low (less than mean -0.425 SD) Medium (between mean + 0.425 SD) High (more than mean +0.425 SD) Kharif-Fallow-Fallow Kharif-Rabi-Summer Kharif-Rabi-Fallow Fallow-Rabi-Summer Low (less than mean -0.425 SD) Medium (between mean + 0.425 SD) High (more than mean +0.425 SD) 22 88 34 60 74 10 20 90 30 4 60 72 12 15.30 61.20 23.70 41.70 51.40 6.95 13.90 62.50 20.90 2.80 41.70 50.00 8.40 30 74 40 20 93 31 21 93 20 10 15 80 49 20.90 51.40 27.80 13.90 64.50 21.60 14.60 64.60 13.90 6.95 10.40 55.60 34.10 8 14 6 40 19 21 1 3 10 6 45 8 37 5.60 9.80 4.20 27.80 13.20 14.60 0.60 2.09 6.95 4.20 31.30 5.50 25.60

b) Groundnut

Cropping pattern

Employment generation (man days)

Table 8: Impact of KVG Bank on agriculture development of beneficiaries n=144 Sl. No. 1. 2. 3. 4. a. b. 5. 6. Variables Before After Difference Per cent change 72.94 75.47 348.50

Annual income (Rs.) Asset acquisition (Rs.) Consumption pattern (Rs.) Land productivity (q/acre) Groundnut Cotton Cropping pattern Employment (mandays) generation

39986.10 10868.00 296.50

69149.30 19069.40 1329.80

29163.10** 8201.30** 1033.30**

8.518 4.699 0.826 65.48

5.12 7.55 1.7976 107.98

3.39* 2.88** 0.9706

NS

39.86 61.39 117.50 64.89

42.49**

*, ** : Significant at 5% and 1% level of probability

there was increase from 20.80 to 73.70 per cent after borrowing loan which indicates positive impact on asset acquisition. It was observed from Table 7 that with respect to consumption pattern, there was increase from 20.90 per cent before borrowing loan to 58.40 per cent after taking the loan which indicate significant impact of KVG Bank on agriculture development. Data with regards to land productivity clearly indicated that the increase in cotton yield was from 61.20 per cent before to 51.40 per cent after taking the loan. Further, in high land productivity category, there was increase in yield was 23.70 per cent before to 27.80 per cent after taking the loan from KVG Bank. Simialrly, in case of groundnut crop, yield was increased from 51.40 to 64.50 per cent in medium land productivity category, whereas in high land productivity category, the income in yield is from 6.95 to 21.60 per cent. With respect to employment generation of beneficiaries, the results clearly indicated that 50 per cent before taking loan and 55.60 per cent after taking loan fall under medium employment generation category, followed by 41.07 per cent before and 10.40 per cent of them comes under low employment generation category.

4.2.2 Impact of KVG Bank on Agriculture Development of beneficiaries

A close look at Table 8 shows that, in agriculture development, the dimensions like consumption pattern (348.50%) employment generation (64.89%), asset acquisition (75.47%), annual income (72.94%), land productivity with respect to cotton (61.39%) and Groundnut (39.86%) and cropping pattern (117.50%) had positive and significant impact on agriculture development of beneficiaries indicated by significant t values.

Table 9: Impact of KVG Bank on annual income of beneficiaries n=144 Annual income Before Categories F Upto 17,000 17,.001 to 34,000 34,001 to 51,000 Above 51,000 10 68 38 28 % 6.95 47.23 26.39 19.45 F 3 26 54 61 % 2.09 18.06 37.50 42.37 F 7 42 16 33 % 4.87 29.17 11.12 22.90 After Difference

Low Semimedium Medium High

4.2.1.1 Annual income

It could be observed from the Table 9 that there is a clear indication of increasing trend of annual income of beneficiaries, further 26.39 per cent of respondents were in medium annual income category (Rs. 34,000 to Rs. 51,000) before borrowing loan, whereas in case of high income group (above Rs. 51,000). There was increase in number of respondents from 19.45 per cent before to 42.37 per cent after borrowing loan which indicate by 22.90 per cent of the beneficiaries.

4.2.1.2 Asset acquisition

It could be observed from Table 10 that there is a clear indication of increasing trend in asset acquisition of beneficiaries 31.90 per cent of respondents under the category of Rs. 50,001 to Rs. 1,00,000 before borrowing loan whereas it is increased to 37.50 per cent after borrowing loan. In case Rs. Above 2,00,000 range, there was increase in number of respondents from 23.60 and after taking the loan it was 26.38 per cent, it is clearly observed from the Table 10. This is shift of the beneficiaries from Rs. 25,000 to Rs. 50,000 land asset acquisition category to Rs. 50,000 to Rs. 1,00,000 (5.55%) and above Rs. 2,00,000, land acquisition category (2.77%). So, this is clear indication of improvement in land acquisition of the beneficiaries. With respect to asset acquition on building as per Table 10. It is reported that 12.50 per cent of respondents under the category (Rs. 50,000 Rs. 1,00,000) before borrowing loan whereas it is increased to 33.34 per cent after, in case of 0.69 per cent of respondents are in range of Rs. 1,00,000 to Rs. 1,50,000 before borrowing loan 19.45 per cent was increased after borrowing loan. Similarly, 6.95 per cent of respondents under the category of Above Rs. 1,50,000, it was increased upto 2014 per cent after taking loan. The data regard to farm machinery and implements, 2.78 per cent of respondents under the category of Rs. 25,001 to Rs. 50,000 before borrowing loan whereas it is increased to 48.00 per cent after borrowing loan. It is also observed that livestock possession, 1.39 per cent of respondents under the range of Rs. 50,001 to Rs. 1,00,000 before taking loan whereas it was increased to 11.80 per cent after borrowing loan. With respect to financial asset, 2.78 per cent of respondents under the category of Rs. 25,000 to Rs. 50,000, whereas it was increased after borrowing loan (10.42%).

Table 10: Impact of KVG Bank on Assets acquisition of beneficiaries n=144 Before Assets Categories F Land (in Rs.) 25,000 to 50,000 50,001 to 1,00,000 1,00,001 2,00,000 Above 2,00,000 Building (in Rs.) Upto 25,000 25,001 to 50,000 50,001 to 1,00,000 1,00,001 1,50,000 Above 1,50,000 Farm machinery and implements (in Rs.) to to 20 46 44 34 57 58 18 1 10 % 13.80 31.90 30.55 23.60 39.00 38.00 12.50 0.69 6.95 F 10 54 42 38 19 20 48 28 29 % 6.94 37.50 29.10 26.38 13.50 14.00 33.34 19.45 20.14 F 10 8 2 4 38 39 30 27 19 % 6.94 5.55 1.38 2.77 26.30 27.0 20.84 18.75 13.19 After Difference

Upto 25,000

70

48.60

68

47.20

3.48

25,001 to 50,000 50,001 to 1,00,000 Above 1,00,000 Live stock possession (in Rs.)

4 0 0

2.78 0 0

67 4 4

48.00 2.78 2.78

11 2 2

7.60 1.38 2.78

Upto 25,000

69

47.00

62

43.00

9.03

25,001 to 50,000 50,001 to 1,00,000 Above 1,00,000 Financial assets (in Rs.) Upto 25,000 25,001 to 50,000 50,001 to 1,00,000 Above 1,00,001

70 2 4 137 4 3 0

48.20 1.39 2.78 95.14 2.78 2.09 0

63 17 2 115 15 7 7

43.75 11.80 1.38 79.87 10.42 4.87 4.87

7 15 2 22 11 4 7

4.86 10.42 1.38 15.28 7.64 4.87 4.87

KVG Bank Manager handling over tractor key to the beneficiary farmer

A view of farmers engaged in brick making unit financed by KVG Bank

A view of cotton crop grown by beneficiary farmers of KVG Bank

Group of farmers on study tour undertaken by KVG Bank

View of farm machinery implements making unit financed By KVG Bank

Beneficiary farmers at dairy unit financed by KVG Bank

Beneficiary at idol making unit, a means of assets acquisitions

KVG Bank Officers distributing Pratibha Purskara Awards

Table 11: Impact of KVG Bank on consumption pattern of beneficiaries n=144 Before Assets Categories F Food (Rs.) Upto 20,000 20,001 to 40,000 40,001 to 80,000 80,001 to 1,60,000 Clothing (Rs.) Upto 10,000 10,001 to 20,000 20,001 to 40,000 Above 40,000 Religious functions and marriages (Rs.) 113 22 9 0 68 67 6 0 % 78.48 15.28 5.56 0 47.00 48.20 4.17 0.00 F 49 51 44 0 51 50 27 14 % 34.02 35.42 29.87 0 35.00 36.00 18.76 9.70 F 64 29 35 0 17 16 21 14 % 44.50 20.14 24.30 0 11.80 10.00 14.59 9.70 After Difference

Upto 10,000

133

92.37

119

82.64

14

9.73

10,001 to 20,000 20,001 to 40,000 40,001 to 80,000 Medical expenses (Rs.) Upto 5,000 5,001 to 10,000 10,001 to 20,000 20,001 to 40,000 Education (Rs.) Upto 10,000 10,001 to 20,000 20,001 to 40,000 40,001 to 80,000 Above 80,000

6 1 4 125 15 1 3 116 14 10 4 3

4.16 0.69 2.78 86.80 10.42 0.69 2.09 80.50 9.73 6.95 2.78 2.09

8 8 9 87 32 11 14 65 40 7 12 4

5.56 5.56 6.25 60.42 22.23 7.64 9.73 45.14 27.78 11.80 8.33 2.78

2 7 5 38 17 0 11 51 26 7 7 1

1.39 4.87 3.48 26.38 11.80 6.95 7.64 35.42 18.06 4.87 5.55 0.69

So, clearly indicate the positive impact on asset acquisition in agriculture development.

4.2.1.3 Consumption pattern

It could be observed from Table 11 that there is a clear indication of increasing trend of food in consumption pattern of beneficiaries, 15.28 per cent of respondents under the category of Rs. 20,001 to Rs. 40,000 before borrowing loan whereas it is increased to 34.42 per cent after borrowing loan. In case (Rs. 40,001 Rs. 80,000), range there was increase in number of respondents from 5.56 per cent after taking the loan it was 29.87 per cent. So, this is clear indication of improvement in food consumption of beneficiaries. With respect to clothing, 4.17 per cent of respondents under the category (Rs. 20,001 Rs. 40,000) before borrowing loan whereas it is increased to 18.76 per cent after borrowing the loan. So, this is clear indication of improvement in clothing expenditure of the beneficiaries. The data with regard to religious function and marriages, 4.16 per cent of respondents under the category of (Rs. 10,001 to Rs. 20,000) before borrowing loan whereas it is increased to 5.56 per cent after borrowing loan. Similarly, 2.78 per cent of respondents under the category of Rs. 40,001 to Rs. 80,000. It was increased upto 6.25 per cent after taking the loan. It is also observed that medical expenses expenditure, 10.42 per cent of respondents under the category of Rs. 5,001 to Rs. 10,000 before borrowing loan whereas it is increased to 22.23 per cent after borrowing loan. Similarly, 2.09 per cent of respondents under the category of Rs. 20,001 to Rs. 40,000, it was increased upto 9.73 after taking loan. With respect to education, 9.73 per cent of respondents under the category of Rs. 10,001 to Rs. 20,000, it was increased to 27.78 per cent after taking loan. Similarly, 2.78 per cent (Rs. 40,001 Rs. 80,000), it was increased to 8.33 after taking loan. So, clearly indicate the positive impact on consumption pattern in agriculture development.

4.2.1.4 Cropping pattern

It is observed from Tables 12 that 13.90 per cent of the beneficiaries were growing greengram in kharif season before borrowing loan was increased to 14.60 per cent after borrowing the loan. Increasing trend observed with respect to cultivation of groundnut in kharif season followed by greengram in rabi and jowar in summer there is increase of 2.8 per cent before borrowing loan to 6.95 per cent with respect to chilli crop.

4.2.1.5 Employment generation

It is clearly observed from the Table 13 the employment with respect to marginal farmers was 280 mandays before borrowing loan which was increased to 392 mandays after borrowing loan. Similarly, trend observed with respect to small farmer and agriculture labourers from 195 to 253 mandays and 166 to 269 mandays respectively which clearly indicated the improvement in employment generation.

4.2.1.6 Land productivity

Data with regards to land productivity depicted in Table 14 clearly indicate that, the increase in cotton yield of 5 to 8 quintal was from 61.20 per cent before to 51.40 per cent after taking the loan. Further, in high land productivity category, there was increase in yield of above 8 quintals was 23.70 per cent before to 27.80 per cent after taking the loan from KVG Bank. Similarly, in case of groundnut crop, yield was increased from 51.40 to 64.50 per cent in medium land productivity category of 5 to 8 quintals whereas in high land productivity category of above 8 qunitals the income in yield i.e., 6.95 to 21.60 per cent.

Table 12 Impact of KVG Bank on cropping pattern of beneficiaries n=144 Sl. No. A) 1 Before Cropping pattern F Seasonal Cropping pattern Greengram-F-F (Kharif-rabi-summer) Groundnut-greengramjowar (Kharif-rabi-fallow) F-cotton (Fallow-rabi-summer) Chilli-F-F (Kharif-fallow-fallow) 20 13.90 21 4.60 1 0.60 % F % F % After Difference

90

62.50

93

64.60

2.09

30

20.90

20

13.90

10

6.95

2.80

10

6.95

4.20

(Note Multiple responses are obtained)

Table 13 Impact of KVG Bank on employment generation of beneficiaries n=144 After Variable Categories Before

Employment generation (man days)

small farmers

195

253

marginal farmers agricultural laborers

280 166

392 269

Table 14 Impact of KVG Bank on land productivity of beneficiaries n=144 Land productivity (q/ha) a) Cotton Before Categories F Upto 5 quintals 5 to 8 quintals Above 8 quintals b) Groundnut Upto 5 quintals 5 to 8 quintals Above 8 quintals 22 88 34 60 74 10 % 15.30 61.20 23.70 41.70 51.40 6.95 F 30 74 40 20 93 31 % 20.90 51.40 27.80 13.90 64.50 21.60 F 8 14 6 40 19 21 % 5.60 9.80 4.20 27.80 13. 20 14.60 After Difference

4.3

Knowledge level of recommended cultivation practices of cotton

Majority of the beneficiaries of Karnataka Vikas Grameena Bank had knowledge about recommended varieties (90.30%) followed by sowing time (81.90%), seed rate (68.06%) and seed treatment with sulphuric acid and seed treated with cow dung (62.50%) (Table 15). Regarding recommended cultivation practices, respondents had knowledge about FYM application in irrigated area (41.67%) and dry land (55.60%), spacing for the main field i.e., for hybrid (73.70%), local (68.75%) and application of recommended fertilizer to the main field (62.50%). In case of special cultivation practices the respondents had knowledge about intercropping with onion (41.70%) followed by chilli (27.80%), groundnut (13.80%), About (83.40 %) of the respondents had knowledge about chemical used control spraying like diuron, basaline, alachlor weedicides and (54.20%) of the respondents had correct knowledge about the control measures as recommended with respect to plant protection measure, (88.90%) and (63.9%) of respondents had knowledge about incidence of insect and pests of cotton crop (63.90%) and (66.70%) of the respondents had correct knowledge about the control measure as recommended with respect to incidence of insect and pests of cotton crop. Further, (75.00%) of respondents had knowledge about preparation of NSKE (Neem Seed Kernel Extract).

4.3.1 Adoption level of recommended cultivation practices of cotton

Majority (83.33%), of the beneficiaries of Karnataka Vikas Grameena Bank had adopted the recommended varieties like DCH-32, DHB-105, Varalaxmi, Jayadhar, followed by sowing time (76.40%), seed rate (90.28%) (Table 16)

Table 15: Knowledge level of recommended cultivation practices of cotton crop of beneficiaries of KVG Bank n=144 Sl. No. 1. 2. a) b) 3. a) b) 4. a) b) Practices Varieties recommended (DCH-32, DHB105, Varalaxmi , Jayadhar) Sowing time First fortnight of May 15-25 May Seed rate Hand sown Drill sown Seed treatment Conc. Sulphuric acid 70 cc to 100 cc/kg of Fuzzy seed at time of 6-12 min Seed should be rubbed with paste of cow dung, ash and water after rubbing the seed it should be dried in shade Recommended FYM to main field a) b) 6. a) Irrigated 4 t/acre Dryland 2 t/acre Spacing in the field Hybrid Row to row 90 cm Plant to plant 60 cm b) Local Row to row 90 cm Plant to plant 30 cm 7. a) b) c) Fertilizer/acre N 16 kg/acre P 10 kg/acre K 10 kg/acre 70 48.62 99 68.75 106 73.70 60 80 41.67 55.60 90 88 62.50 61.20 98 46 68.06 31.90 118 80 81.90 55.60 Frequency 130 Percentage 90.30

5.

Contd.. 8. a) b) c) .9. a) b) 10. a) b) 11. a) b) 12. Intercropping with cotton Cotton + onion Cotton + chilli Cotton + groundnut Weed control (Diuron, Basaline, Alachlor) Awareness Control measure Pest control (pink bollworm, spotted bollworm, jassids, aphids, whitefly) Awareness Control measure Disease control (root rot, anthracnose, boll rot) Awareness Control measure NSKE 130 96 108 90.27 66.70 75.00 128 92 88.90 63.90 120 78 83.40 54.20 60 50 20 41.70 27.80 13.80

Majority of the respondents adopted recommended FYM application in irrigated field (20.80%) and in dryland (31.30%), recommended spacing 90x60 cm (61.20%) for hybrids and 90x30 cm 57.70 per cent varieties about 51.40 per cent of them adopted use of and chemical fertilizers. Fourty three per cent of the respondents adopted the practice of intercropping with onion, followed by chilli (24.40%), and followed by groundnut (12.50%). Whereas, 31.25 per cent of respondents adopted the chemical weed control like diuron, basaline, alachlor and (42.62%) had adopted the plant protection measure to control pink bollworm, spotted bollworm, jassids, aphids, whitefly, cotton leaf roller viz., (51.39%) of respondents were adopted control measures for disease (root rot, anthracnose, boll rot) as per the recommendation. Nearly half of the respondents had adopted NSKE preparation to control the pest.

4.4(a)

Problems encountered by the KVGB beneficiaries

4.4.1 Problems faced in borrowing the loan

From the Table 17, it is clear that 34.8 per cent of the respondents expressed that amount of loan was not sufficient and 27.80 per cent of them said amount of loan was not sanctioned in time and about 27.8 per cent respondents expressed that it is cumbersome procedure while 40.28 per cent of them expressed that diversion of loan to other pressing needs was the reason.

4.4.2 Utilization of loan for non-agricultural purposes

From the Table 17, it could be concluded that in case of the borrowers of Karnataka Vikas Grameena Bank, 34.8 per cent of them utilized the loan for meeting family expenditure followed by 27.8 per cent of them utilized for repaying the other debts followed by 45.2 per

Table 16: Adoption level of recommended cultivation practices of cotton crop of beneficiaries of KVG Bank n=144 Sl. No. 1. 2. a) b) 3. a) 4. a) b) 5. a) b) 6. a) b) c) 7. a) b) c) .8. 19. 10. 11. Practices Varieties recommended (DCH-32, DHB-105, Varalaxmi, Jayadhar) Sowing time First fortnight of May 15-25 May Seed rate Hand sown Recommended FYM to main field Irrigated 4 t/acre Dryland 2 t/acre Spacing in the field Hybrid Row to row 90 cm Plant to plant 60 cm Local Row to row 90 cm Plant to plant 30 cm Fertilizer/acre N 16 kg/acre P 10 kg/acre K 10 kg/acre Intercropping with cotton Cotton + onion Cotton + chilli Cotton + groundnut Weed control (Diuron, Basaline, Alachlor) Pest control (pink bollworm, spotted bollworm, jassids, aphids, whitefly, cotton leaf roller) Disease control (root rot, anthracnose, boll rot) Preparation of NSKE 62 35 18 45 70 74 80 43.00 24.40 12.50 31.25 45.62 51.39 55.56 74 51.40 88 83 61.20 57.70 30 45 20.80 31.30 130 90.28 110 80 76.40 55.60 Frequency 120 Percentage 83.33

Table 17: Problems encountered by the KVGB beneficiaries n=144 Sl. No. 1. a) b) c) 2. Problems Problems faced in borrowing the loan Loan was not sanctioned in time Amount of loan was not sufficient Cumbersome procedure Loan utilization purpose for non-agriculture 40 50 40 27.8 34.8 27.8 II I II Frequency Percentage Rank

a) b) c) d) 3. a) b) c) d)

To meet family expenditure For repaying other debts For children education Marriage of daughters Delay in repayment Due to low yields Low market price for the produce Repayment of other debts Unsuitable repayment schedule

50 40 65 60

34.8 27.8 45.2 41.7

IV III I II

40 50 25 05

27.8 34.8 17.4 3.5

II I III IV

(multiple responses obtained) cent of them utilized the loan for children education and 41.7% of them were utilized loan amount for marriage of their daughters.

4.4.3 Delay in repayment

From the Table 17, it could be observed that in case of borrowers of Karnataka Vikas Grameena Bank, 34.8 per cent of them expressed that low market price for their produce was the main reason for their failure to repay the loan intime. While, 27.8 per cent of them indicated low market yields was the reason and 17.4 per cent of them indicated repayment of other debts and 3.5 per cent of them indicated that the repayment schedule of the bank was not suitable to them to repay the loan intime.

Table 18: Suggestions of beneficiaries about financing by KVGB n=144 Sl. No. 1. Suggestions Frequency Percentage

Loan amount should be hiked

96

66.67

2 3 4 5

Procedure for loan should be simplified Interest rate should be reduced More time should be given for repayment Bank should consider for genuine reasons for delay in repayment

85 120 110 80

59.02 83.33 76.38 55.5

(multiple responses obtained)

4.4 (b) Suggestions of beneficiaries about financing by KVGB

Different opinions expressed by the borrowers of Karnataka Vikas Grameena Bank about the important aspects of farm financing by the bank were presented in Table 18. The following conclusions were drawn A birds eye view of Table 18 reveals the opinion of the borrowers of Karnataka Vikas Grameena Bank on several important aspects are.

4.4.1. Loan amount should be hiked

It is clear from Table 18 that Majority 66.67 per cent of respondents have suggested that the crop loan amount should be increased further the respondents can adopt new agriculture technologies which help to the farming community.

4.4.2. Procedure for loan should be simplified

Majority 59.02 per cent of beneficiaries have suggest that the procedure was too lengthy, it can takes two to three weeks. It can be easy and useful for illiterate farmers also

4.4.3. Interest rate should be reduced

Majority 83.33 per cent of farmers expressed that the interest of the crop loan should be reduced because for small and marginal farmer is fully depending upon agriculture if there is crop failure how can we repay the amount.

4.4.4. More time needed for repayment

Majority (76.38%) of farmers expressed that the KVG Bank to give more time for repayment the reasons were crop failure

4.4.5. Banks to consider the genuine reason for delay in repayment

Majority (55.5%) of farmers expressed that the KVG Bank to consider the genuine reason for delay in repayment of beneficiaries.

5. DISCUSSION
The data collected during the investigation were analyzed, interpreted and the findings were presented under the following headings. 5.1 5.2 5.3 5.4 Profile of beneficiarie s of Karnataka Vikas Grameena Bank. Impact of Karnataka Vikas Grameena Bank on agriculture development of beneficiaries Knowledge and adoption level of improved cultivation practices regarding cotton crop by beneficiaries Problems and suggestions as perceived by the beneficiaries.

5.1

Profile of beneficiaries of Karnataka Vikas Grameena Bank

5.1.1 Age
A perusal of Table 3 reveals that majority (68.75%)of the beneficiaries of KVGB belonged to middle age group(31-50 years). Though majority of the respondents belonged to middle age group, it is advisable that equal opportunities should be provided to all the farmers belonging to different age groups by the bank officials to avail credit for modernizing their agriculture and for starting other subsidiary enterprises and allied agricultural industries. This finding is in conformity with the findings of Ravikumar (1984), Raghuprasad (1992) and Shashidhar (2004).

5.1.2 Education
From Table 3, it is evident that 36.90 per cent of the beneficiaries of KVGB were educated upto middle school level followed by 22.30 per cent upto high level, 16.70 per cent of respondents educated upto primary level, 15.3 per cent respondents educated upto PUC and 6.25 per cent educated upto PUC and 6.25 per cent of respondents were illiterates and 2.78 per cent had education upto graduate level. The findings indicate that farmers of all educational levels including illiterates are obtaining the credit from KVGB for furthering their agricultural production, which indicates that it is a desirable trend. There is need to inform educational qualification of the beneficiaries which helps in creating the awareness regarding the mandates of KVG Bank programmes and loan transactions, of KVG Bank. This finding is in agreement with the beneficiaries of KVGB, majority of farmers educated upto school level is similar findings of Ravikumar (1989).

5.1.3 Land holding

The result in Table 3 indicates that among the beneficiaries of KVG Bank, majority (34.60%) of the beneficiaries were largefarmers followed by medium farmers and small farmers. Karnataka Vikas Grameena Bank catering to the needs of small farmers and advancing loan for their agriculture development and socio-economic development which is one of the mandates of KVG Bank. But, it is also advisable that equal opportunities to be provided to the small and medium farmers also who compromise of (61%) of sample in the present research study. The finding is in line with the findings of Ravikumar (1989)

5.1.4 Cosmopoliteness
A perusal of Table 3 revealed that among the beneficiaries of KVG Bank, majority (51.38%) had medium Cosmopoliteness followed by high Cosmopoliteness and low Cosmopoliteness. The results indicate the need to develop more Cosmopoliteness among beneficiaries which helps in updating the knowledge of farmers regarding latest developments in agriculture and about KVG Bank programmes. The finding is in agreement with the findings of Ravikumar (1989).

5.1.5 Mass media participation

It can be observed from the Table 3 and 4 that, (65.96%) had medium mass media participation fallowed by (25.7%) of respondents had high mass media participation and (8.34%) had low mass media participation. The results revealed that television (95.90%) was the most commonly used media viewed by majority of respondents regularly followed by newspapers (61.11%) as most of the farmers were literate and radio (47.92%), which is the cheap and easy source of communication medium. Further the results indicate that majority farmers (54.80%) reading farm magazines as they visiting Agricultural University krishi mela, they become subscriber of publications. About 60.50 per cent of respondents never read book on agriculture. The source of availability of books or they dont get sufficient time to read books which are voluminous. The above findings are in conformity to the findings of and Raghavendra (2005)

5.1.6 Extension participation

A perusal of Table 3 and 5 depicts the extension participation of beneficiaries of KVGB. Revealed that (46.50%) had high Extension participation fallowed by (32.7%) had medium Extension participation and (20.80%) had low Extension participation. Regarding training programmes, 54.2 per cent of the respondents participated occasionally. Majority of the respondents participated in the training programmes occasionally viz., group discussion (68.06%), demonstration (56.80%), training programmes (54.20%), agriculture exhibition (43.00%), educational tour (34.03%), film/slide show (27.00%), field day (15.30%), krishimela (10.42%), whereas 89.59, 48.60, 38.20 and 20.90 per cent of them participated regularly in respect of krishimela, agriculture exhibition, trainng programme, demonstration, respectively. Further, half of the respondents never participated in extension activities at all. In case of campaign, 88.90 per cent of the respondents never participated. Whereas, in field day (83.40%), film/slide show (70.90%) and in education tour (59.02%) respondents never participated. The possible reason could be having not exposed to the different extension leading methods. The farmers were not aware of the activity due to less contact with extension workers of development departments The above findings are in conformity to the findings of and Raghavendra (2005).

5.1.7 Social participation

The data in Table 2 and 6 depicts that (73.62%) of respondents had medium Social participation fallowed by (13.88%) had low Social participation fallowed by (12.5%) had high Social participation. It is observed from the table that about 45.90 per cent of farmers were members of co-operative society and very low percentage (18.70%) of them participated in the meetings regularly. This is mainly farmer service oriented organizations and most of them

taken loan from farmers co-operative society for various agriculture purposes. As a result they might not have participated in the organizations meetings more enthusiastically. Majority (28.50%) of the farmers were members of village panchayats. Since, the democratic decentralization many farmers took very much interest in panchayat election and feel they can serve better and give justice to the farmers further (18.06%) of them participated regularly in panchayat meetings. The beneficiaries who were young could become members of youth clubs (36.90%) and 25.00 per cent of them participated in regular meetings. The respondent farmers were young, energetic and by becoming members they feel they can serve the farmers better and also contribute for overall development of the village. The above findings are in conformity to the findings of and Raghavendra (2005).

5.1.8 Risk orientation

A perusal of Table 3 revealed that among the beneficiaries of KVGB, majority (45.13%) had high risk bearing ability followed by medium risk bearing ability and low or less risk bearing ability. The findings are in accordance with the findings of Saravanakumar (1996) and Moulasab (2004).

5.1.9 Credit orientation

A perusal of Table 3 reveals that among the beneficiaries of KVG Bank, majority (59.80%) had medium credit orientation followed by high credit orientation and low/less credit orientation. The result indicate that majority of beneficiaries of KVGB have obtained short term crop loans. The reason for favouring crop loan by majority might be that more number of the beneficiaries of KVGB was small and marginal farmers, who generally need credit for immediate agricultural purposes such as seeds, fertilizers and pesticides, dairy, poultry and sheep rearing are some of the important allied agricultural sectors which improves the economic status of the farming community. But, very few people have availed these loans from KVGB. This indicates the need on the part of the official of KVGB about educating beneficiaries about the importance of subsidiary industries and different loans available in that direction. The above findings are in confirmity to the findings of Ravikumar (1989).

5.2

Impact of Karnataka Vikas Grameena Bank on Agriculture Development of Beneficiaries

5.2.1 Distribution of respondents based on the dimensions of agriculture development 5.2.1.1 Annual income
It could be seen from the Table 7 majority farmers were in the medium annual income level group (48.70% before and 58.30% after). The difference values indicates the improvement in annual income of the beneficiaries i.e., a shift from low annual income category to medium annual income category and high annual income category were observed. This clearly indicates the positive impact of KVG Bank on annual income of beneficiaries which is an important dimension of agriculture. It could be observed from the Table 10 that there is a clear indication of increasing trend of annual income of beneficiaries, further 26.39 per cent of respondents were in medium annual income category (Rs. 34,000 to Rs. 51,000) before borrowing loan, whereas in case of high income group (above Rs. 51,000). There was increase in number of respondents from 19.45 per cent before to 42.37 per cent after borrowing loan which indicate by 22.90 per cent of the beneficiaries.

The results are quite encouraging as the beneficiaries after getting loan from KVG bank have diversified their activities on various aspects like agriculture and allied activities like dairy, leaf making, potting work and some of them have even induced in business activities hence the annual income has significant impact on beneficiaries. While a cursory look of the table an annual income with respect to various activities like agriculture, agrobased, subsidiary and business activities was closely analysed. It is quite obvious that income from agriculture before and after has positive and significant impact on beneficiaries. This is due to the fact that majority of farmers in the study area have taken up agriculture as their main occupation and they depend on this income only for their livelihood and results also revealed that some farmers in addition to agriculture have also taken up agrobased subsidiary enterprises like dairy, poultry enterprises. In the study area, where there is irrigation facility farmers use to grow fodder and forage crops to fed to their animals and due to this annual income on subsidiary occupation has increased. In case of business, the results are nonsignificant, because only few beneficiary have take up activities like preparation of detergent, pottery, leaf making activation, this is mainly through self help groups where bank has financed.

5.2.2.2

Asset acquisition

It could be seen from the Table 10 that, beneficiaries (31.90% before and 37.50% after) have got land value ranging between Rs. 50,000 to Rs. 1,00,000 followed by (30.55% before and 29.16% after) beneficiaries have land value ranging between Rs. 1,00,000 to Rs. 2,00,000 with difference of 1.38 per cent. The reason for increase in the land value might be that the study area comes under transitional belt with assured rainfall. If the farmer purchase the land by taking loan from KVG Bank they can grow crops with assured income. Hence farmers were categorized with high land value. the result with regard to amount spent on building, it is 38.00 per cent before and 14.00 per cent after with a difference percentage of 27.00per cent upto from Rs25001 Rs. 50,000. This is a worthy point to note this change. Further, beneficiaries of 12.50 per cent before and 33.34 per cent after getting loan have invested on purchase of building/house between the range of Rs. 50,000 to Rs. 1,00,000 and about 0.69 per cent before and 19.45 per cent after taking loan, beneficiaries spent amount ranging between more than Rs. 1,00,000 to Rs. 1,50,000. The difference percentage of 52.78 farmers earlier remained have been adjusted in the increase in purchasing capacity of farmers of above Rs. 50,000. This is mainly due to the loans they are getting from KVG Bank. Result with regard to purchase of farm machinery and equipments, majority of them had spent upto Rs. 25,000 (48.6% before and 47.20% after) with a difference of 3.48 per cent. This difference has been adjusted with respondents spending on purchase of machinery after getting loan is 2.78 per cent at a range between 25001 to50000 Rupees. As farmers take loan and make profit they invest in more amount on purchase of implements, machineries which will come for their future use. Results with regard to livestock possession (47.00% before and 43.00% after) of beneficiaries spent on purchase of animals upto Rs. 25,000 with 9.03 per cent difference. This difference has been adjusted with those farmers (1.39% before and 11.80% after) who spent on livestock at a range of Rs. 50,001 to Rs. 100,000. This is mainly because KVG Bank has financed on purchase of animals also and due to this farmers started their dairy unit Hence they spent more amount on livestock possession. The data presented with respect to financial asset majority of (95.14% before and 79.87% after) have spent upto Rs. 25,000 with a difference of 15.28 per cent. Further, beneficiaries spent on purchase of gold, household articles between range of Rs. 25,001 to above Rs. 1,00,000. This is mainly because of farmers after a ailment of loan have invested more on accumulation of financial assets. The above findings are in conformity to the findings of Hosamani (1993),

5.2.2.3

Consumption pattern

The data presented in Table 11 on consumption pattern, majority of the farmers spent on food upto Rs. 20,000 (78.48% before and 34.02% after) by the beneficiaries and with 44.50 per cent, difference and again respondents (15.28% before and 35.42% after) have spent upto Rs. 20,001 to Rs. 40,000. The difference has been adjusted in this group as majority farmers after taking loan from KVG Bank their consumption pattern on food has increased with regard to clothing majority (47.00% before and 35.00% after) beneficiaries spent on clothing upto Rs.10,000. With a difference of 11.80 per cent farmers and (48.20% before and 36.00% after) respondents had spent at a range between Rs. 10,001 to Rs. 20,000. This difference can be adjusted as beneficiaries availing loan from KVG Bank, the spending capacity has increased on clothing. The results on religious functions and marriages, it is seen that, majority (92.37% before and 82.64% after taking loan) of respondent farmers spent upto Rs. 10,000 with a difference of 9.73 per cent. This difference can be seen in case of 4.16 per cent before and 5.56 per cent after beneficiaries who spent upto Rs. 10,001 to Rs. 20,000. This is again the same as the respondents after availment of loan from KVG Bank have increased their earnings on conducting religious and marriage ceremony functions. With regard to medical expense, again farmers spent upto Rs. 500 by majority (86.80% before and 60.42% after) with a difference of 26.38 per cent beneficiaries. This purchasing power has increased from Rs. 10,001 to Rs. 20,000 by 0.69 per cent before and 7.64 per cent after beneficiaries after taking loan from the KVG Bank. Results on educational expenses of children has revealed that majority (80.50% before and 45.14% after) beneficiaries upto Rs. 10,000 with a difference of 35.42 per cent again farmers 9.73 per cent before and 27.78 per cent after taking loan, farmers spending capacity on childrens education has increased from Rs. 10,000 to Rs. 20,000. This might be due to loan facility farmer could increase his earnings and spend on education. The above findings are in conformity to the findings of Hosamani (1995),

5.2.4 Cropping pattern

13.90 per cent of the beneficiaries were growing greengram in kharif season before borrowing loan was increased to 14.60 per cent after borrowing the loan. Increasing trend observed with respect to cultivation of groundnut in kharif season followed by greengram in rabi and jowar in summer there is increase of 2.8 per cent before borrowing loan to 6.95 per cent with respect to chilli crop (Table 12). The increased in the cropped area had clearly brought the importance of KVGB finance on the efficiency of use of natural resources especially the land. The above findings are in conformity to the findings of Pande (1995),

5.2.5 Employment generation

It is clearly observed from the Table 13 the employment with respect to marginal farmers was 280 mandays before borrowing loan which was increased to 392 mandays after borrowing loan. Similarly, trend observed with respect to small farmer and agriculture laborers which clearly indicated the improvement in employment generation The off-farm employment varies mainly because of the cropping pattern to suit the rainfall pattern and higher intensity of input use and cultural practices. The on farm employment generation varies in the quantity and distribution of rainfall and average net sown area of the farmers.

5.2.6 Land productivity

The production capacity of the land under different crops is presented in Table 14 The land productivity with respect to cotton I is categorized as medium (61.2% before and 51.4% after) level. This is mainly because farmer after borrowing loan has invested in purchase of quality, good variety seeds and fertilizers and farm yard manure. Hence the increase in the yield level. Similarly in case of groundnut majority (51.4% before and 64.5% after) of beneficiaries categorized as medium level. This is mainly because groundnut is shown during summer due to lack of sufficient rain or irrigation the yield must have reduced but farmer got consisted income. Further highly significant results indicate, in land productivity before and after borrowing the loan. Since land productivity is a one of the important dimension of agriculture development. It can be concluded that there is positive impact of KVG Bank on agriculture development of borrower farmers The above findings are in conformity to the findings of Abhasharma (2001).

5.3

Knowledge level of farmers about recommended cultivation practices in cotton

5.3.1 Knowledge level of farmers about individual recommended cultivation practices of cotton
The data depicted in Table 15 indicated that 90.30 per cent of respondents had knowledge about recommended variety. Eighty one of them had knowledge about sowing time, 68.06 per cent of them about seed rate an 62.50 per cent of them strictly follow the seed treatment to the cotton. About 48.62 per cent of them follow NPK recommended dose and 55.60 per cent of them follow FYM application. NSKE preparation (75%). This trend of results might be due to the fact that farmers might have acquired knowledge about recommended cultivation practices. Through higher extension participation and mass media participation Majority (83.40%) farmers have idea about weed control; about 88.90 and 63.90 per cent of respondents had complete knowledge about pest and disease control measures. All the above factors must have influenced the respondents to acquire more knowledge. It is quite natural that, if the individual is having higher education, more land, with higher income naturally one would like to have more knowledge about new technologies The other important reason might be that, since cotton is a commercial and highly remunerative crop in that area, so farmers might have shown more interest to know the recent information about this crop and hence the results. The above findings are in conformity to the findings of Vijaya Kumar (1997),)

5.3.2 Adoption of individual recommended cultivation practices of cotton growers

The adoption of any technology in general and recommended cotton cultivation practices in particular depend on various factors such as awareness about the complexity of the practices, timely availability of inputs, technologies and characteristics of farmers etc. The detailed analysis of adoption of individual recommended cultivation practices by the respondents as listed in Table16 reveals that 83.33 per cent of farmers are following the recommended practices for selection of cotton varieties (DCH-32, DHB-105, Varalaxmi,

Jayadhar) followed by sowing time i.e., first fortnight of May (76.40%) and seed rate (hand sown) (90.28%). Fifty one per cent of the farmers adopted the recommended fertilizers of NPK and 52.10 per cent had applied recommended FYM. The reasons given by the cotton growers for FYM application as per the recommendation was that it would reduce the pest and disease and improves soil status and the reason for chemical fertilizer application as per recommendation was that recommended fertilizer would give more yield. (Table 16). Further, it was observed that 61.20 per cent of respondents adopted recommended spacing for hybrids and 57.70 per cent of them adopted for local varieties. The reason might be that in cotton cultivation the intercultivation practices like earthing up and weeding are very important operations for higher yield. Majority (43.00%) respondents adopted cotton + onion intercropping followed by cotton + chilli (24.40%). The reason is that, Dharwad and Hubli taluk there is assured rainfall. Among 83.40 per cent farmers have awareness about weed control and 31.25per cent of them have adopted it. The reason might be to prevent the weeds in the initial stage and thereby reduce the cost on chemicals. Majority (63.90%) of cotton growers and 45.62 and 51.39 per cent respondents adopted control measures for pest and diseases, respectively. The possible reason could be that if any pests or diseases affect cotton crop, then it hinders the growth of the crop and severely reduces the yield of the crop. As a result, majority of the farmers adopted the recommended plant protection measures. About 75 per cent of the respondents have aware about NSKE and 55.56 respondents have adopted NSKE cake for control of pests. As this is having organic base and will not affect the soil and health of plants it is followed by majority farmers. The above findings are in conformity to the findings of Ravikumar (1989).

5.4

Problems encountered by the beneficiaries of KVG Bank

5.4.1 Problems in borrowing loan

Majority of the borrowers of Karnataka Vikas Grameena Bank were of the opinion that the amount of loan provided by their bank was not sufficient and equal number of respondents expressed that loan was not sanctioned in time and also it involves cumbersome procedure

5.4.2 Utilization of loan for non-agriculture purpose

A perusal of Table17, reveals that repayment of other debts, family expenditure and children education were the important non-agricultural purposes for which the loans were diverted by the borrowers of Karnataka Vikas Grameena Bank. The above mentioned three purposes are the pressing needs which require immediate attention and hence this might be possible reason for the diversion of bank loans from the right purpose to these non-agricultural purposes.

5.4.3 Delay in repayment

About 34.8 percent of respondents expressed that the delay in repayment is due to low market price for their produce and 27.85 percent expreced that it due to low yield that they are unable to repay the loan intime.

5.4.2 Suggestions made by beneficiaries about financing by KVGB

A birds eye view of Table18 reveals the opinion of the borrowers of Karnataka Vikas Grameena Bank on several important aspects are.

5.4.2.1 Loan amount should be hiked

Majority (66.67%) of respondents were suggested that the crop loan amount should be increased further the respondents can adopt new agriculture technologies which help to the farming community.

5.4.2.2 Procedure for loan should be simplified

Majority (59.02%) of beneficiary farmer were suggest that the procedure was too lenthy, it can takes two to three weeks. It can be easy and useful for illiterate farmers also

5.4.2.3 Interest rate needs to be reduced

Majority (83.33%) of farmers expressed that the interest of the crop loan should be reduced because for small and marginal farmer is fully depending upon agriculture if crop failure how can we repay the amount.

5.4.2.4 More time needed for repayment

Majority (76.38%) of farmers expressed that the KVG Bank will give more time for repayment the reasons were crop failure

5.4.2.5 Bank s to consider the genuine reason for delay in repayment

Majority (55.5%) of farmers expressed that the KVG Bank will consider the genuine reason for delay in repayment of beneficiaries.

6. SUMMARY
Indian economy is basically an agrarian in character and agriculture is an effective means to eradicate poverty and unemployment agriculture and allied activities account for 26.41 per cent of the national income. Considering the steady uptrend in the growth of population, self sufficiency in the production of food grains and edible oils is not a small achievement. The overall development of the economy and poverty alleviation depend on the system of providing affordable credit by the financial infrastructure that stimulates sustainable economic growth through the supply of credit in general and to the rural sector in particular. The Karnataka Vikas Grameena Bank has emerged after the amalgamation of the four erstwhile Grameena Banks with its operation spread over nine districts, now caters to 1/3 of the geographical area of the state and thereby has earned the opportunity of serving a large section of the rural populance. These banks which has helped not only in the expansion of rural credit but also mobilization of rural savings and modernization of rural economy. This has significant impact on agriculture development. With a view to know how for the bank is serving the rural population and bringing agriculture development, the present study is designed with the following objectives. 1. To study the profile of beneficiaries. 2. To analyse the impact of Karnataka Vikas Grameena Bank on agriculture development of beneficiaries. 3. To study the knowledge and adoption of improved agriculture practices regarding selected crops by beneficiaries. 4. To know the problems and suggestions as perceived by the beneficiaries. The study is conducted in Dharwad districts, where the Karnataka Vikas Grameena Bank, Head Office is located. This bank is working in nine districts with its 391 branches covering 2070 villages. In Dharwad district, three taluks were selected that is Dharwad, Hubli, and Kalaghatgi were purposively selected based on the highest number of branches as criteria 12, 17 and 7 branches, respectively. Three KVG Bank branches from each taluk were selected for the study taking into a consideration the performance of branches. The major findings of the study are as follows; In the agriculture development, the dimensions like annual income (48.70% before and 58.30% after), asset acquisition (72.30% before and 22.30% after), consumption pattern (41.70% before and 13.90% after), cropping pattern (62.50% before and 64.60% after), employment generation (50.00% before and 55.60% after) and land productivity for groundnut (61.20% before and 51.40% after) and for cotton (61.20% before and 51.40% after) had positive and significant impact on the agriculture development of beneficiaries. More than 90.30 per cent of respondents have knowledge about selection of recommended varieties and 83.33 per cent of them adopted it and 81.90 per cent have knowledge about sowing intime and 76.40 per cent of them adopted it. More than 68.06 per cent of respondents had knowledge about seed rate and 90.2 percent adopted it . About 48.62, 41.67 and 73.70 per cent of the respondents had knowledge about use of recommended fertilizers, FYM and spacing. but 51.4 52.10 and 61.20 percent of respondents adopted respectively. About 83 per cent farmers had knowledge about weed control and also 88.90 and 90.27 per cent respectively had knowledge about pest and disease control but 31.25

per cent adopted weed control and 45.62 and 51.39 per cent adopted pest and disease control, respectively. Nearly 75.00 per cent of them had knowledge about preparation of NSKE (Neem Seed Kernel Extract) and half of them adopted the same in their field situation. Majority of the respondents belonged to middle age group, educated upto middle school had small land holdings. Cent per cent of the respondents have high cosmopolite category, medium exposure to mass media, high extension contact, medium social participation had high risk orientation and medium credit orientation. Problems expressed by respondents regarding borrowing the loan were, amount of loan was not sufficient (34.8%),loan was not sanctioned intime and it involves cumbersome procedure(55.60%) Problems expressed with regard to loan utilization for non-agriculture purpose include, spending on childrens education (45.20%) repayment of other debt (27.80%), to meet family expenditure (34.80%), and marriage of daughters (41.70%). Problems faced in making delay in repayment includes low market price for the produce (34.80%),Due to low yields (27.80%) and repayment of other debts(17.40%) Majority (66.67%) of the beneficiaries were of the opinion that the loan provided by the bank was not sufficient and 59.02 per cent of them expressed procedure involved in sanctioning the loan too lengthy and it should be simplified and (83.33%) expressed that ,the rate of interest charged on the loans should be reduced. Majority of borrowers (76.38%) opined that KVG Bank to give more time for repayment of loan when there is crop failure and majority (55.50%) of farmers expressed that KVG Bank have to consider genuine reason for delay in repayment.

Implications and suggestions

The results of the study has brought to focus certain implications and followed suggestions 1. The study revealed that the KVG Bank had highly significant impact on agriculture development of beneficiaries. The bank management and government should take initiation to start the KVG Bank branches at village level to cater to the credit needs of large majority of the farmers in the rural areas. 2. Majority of the respondents belonged to medium level knowledge category in respect of recommended cultivation practices of cotton and other crops like groundnut, paddy and greengram. Hence, it is imperative that the state Department of Agriculture can make still more efforts to provide the knowledge about cultivation practices by organizing extension activities like conducting training, demonstration and field days. 3. It was observed that majority of the farmers who have limited awareness and adopted practices like choosing recommended varieties, sowing time, seed rate, seed treatment, spacing and application of fertilizer, use of plant protection chemicals etc. Hence, to create still more awareness in their practices it is ideal that KVG Bank in collaboration with university and Department of Agriculture, to organized well planned regular training programmes, effective demonstrations, campaign, regular farmers meeting by property motivating the farmers and persuade their them for acceptance of sustainable technologies. This needs sincere efforts in providing minimum required facilities like supply of inputs, marketing structure and other infrastructure to increase the adoption of the technologies. 4. With the advent of computerization of land records, introduction of Kisan credit card scheme etc. by the government, the documentation required for agricultural loans has

been greatly streamlined. The KVG Bank should make use of these facilities for according the processing of loan applications. 5. Due to adverse climatic conditions, fluctuating market, government sponsored schemes, complexities in lending procedures, inadequacies in assessing prospective bonus, there are chances of overdue by the beneficiaries. Hence, the bank should come up with formulation of new and viable prospects which may be offered to the prompting borrowers. 6. During the survey some of the beneficiaries expressed that, they are getting the timely help from the bank officials in lending loans but not getting technical help intime. Hence, efforts should be made to recruit agriculture graduates as field officers in all the branches to help the farmers in providing technical guidance in crop production.

Future line of work

Meaningful generalizations cannot be made as the present study has been limited to Dharwad district of Karnataka state. Therefore, it is suggested that further investigation may be taken up in the remaining eight districts also on similar line to make generalizations. The other areas of research could be taken up are; Training needs of KVG Bank beneficiaries. Study could be taken up to compare with the recommendations made by the board of directors of Bank and Agricultural Universities. Case studies of successful farmers who have made profits after borrowing loans from KVG Bank may also taken up. Major policy decisions can be made to help the beneficiaries of KVG Bank.

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Appendix I
IMPACT OF KARNATAKA VIKAS GRAMEENA BANK ON AGRICULTURE DEVELOPMENT OF BENEFICIARIES IN DHARWAD DISTRICT, KARNATAKA
INTERVIEW SCHEDULE I. General information 1. Name of the farmer_________________________________________ a. Village________________________ b. Taluk_________________________ c. Branch________________________ d. District________________________ 2. Age________________________ 3. Education : a) Upto primary school b) Upto middle school c) Upto PUC d) Upto graduate e) illiterate 4. Land holding a) Irrigated b) Dryland c) Garden land d) Total 5. Cosmopoliteness 1. Please indicate the frequency of visit to your nearest town/city. a) Once in a week c) Once in month b) Once in a fortnight d) occasionally : __________________ : __________________ : __________________ : __________________

2. Indicate the purpose of visit to town/city a) Visit relating to agriculture b) Personal domestic c) Entertainment 6. Mass media participation Sl. No. 1. 2. 3. 4. 5. 6. Reading/Listening/Viewing habits Mass media Regularly Newspapers Farm magazines Books on agriculture Extension literatures Radio Television Occasionally Never

7. Extension participation Sl. Extension activities No. 1. 2. 3. 4. 5. 6. 7. 8. 9. Training programme Demonstrations Educational tour Field day Group discussion Film/slide show Agricultural exhibitions Krishimela Campaign Degree of Participation Regular Occasionally Never

10. Others

8. Social participation Degree of participation Sl. No. 1. 2. 3. 4. 5. 6. Types Member Nonmember Office bearer Regular Occasio nally Never

Village panchayat Co-operative society Youth club Farmers forum Taluk development board Any other institution

9. Risk orientation Sl. No. 1. Response pattern Statement SA An agriculturist should grow different variety of crops to avoid greater risk involved in growing one or two crops A farmer should rather take more chance in making a big profit than to be content with a smaller but less risky profits An agriculturist, who is willing to take risks than the average agriculturist usually does better financially A UD DA SDA

2.

3.

4. 5.

It is good for the farmer to take risk whom he knows his chance to success is fairly high It is better for an agriculturist not to try new methods/techniques unless most other have used them with success Trying an entirely new methods in farming by farmers involves risk, but it is worth

6.

10(a). Credit orientation Sl. No. 1. 2. Statements Do you think a farmer like you should borrow money for agriculture purpose? In your opinion, how difficult it is to secure credit for agriculture purpose? Response pattern Yes/No Very easy Easy Difficult 3. How a farmer is treated when he goes to secure credit? Very fairly Fairly Badly Very badly 4. There is nothing wrong in taking credit from institutional sources for increasing farm production Strongly agree Agree Disagree Strongly disagree 5. Did you get credit in the last two years for cultivation Yes/No

(b) Did you get the credit in time a) If not, what might be the reasons (c) Are you repaying the money in time a) If not, what made you to become a defaulter

Yes/No.

Yes/No

PART-II
IMPACT OF AGRICULTURE DEVELOPMENT 1) Land productivity
Before Sl. No. Season Crops A. 1. Agriculture Kharif 1. 2. 3. 2. Rabi 1. 2. 3. 3. Summer 1. 2. 3. B. Forestry 1. 2. 3. C. Horticu-lture 1. 2. 3. Area (ha) Yield (t) Crops After Area (ha) Yield (t)

2) Annual income a) Agriculture

Before Sl. No. 1. 2. 3. Season Crops Kharif Rabi Summer Total Area (ha) Yield (t) After Crops Area (ha) Yield (t)

b) Other sources of income

Sl. No. 1. 2. Sources of income Agriculture Agro-based subsidiary enterprises (like poultry, dairy, goat/sheep rearing etc. Business Others (specify) Total Grand total Before After Income per year (Rs.)

3.

2) Asset position / Asset acquisition

mean value of asset in Rs. per beneficiary Before Land Building/Hour Farm machines implements Livestock Financial assets Other assets (specify) Total After

Particulars

4) Consumption pattern
Sl. No. 1. 2. 3. 4. 5. 6. Food Clothing Religious marriage Medical Education Other (specify) Total functions and Value of in Rs per beneficiary Particulars Before After

5) Cropping pattern /Farming system Sl. No. 1. Area (ha) Season/crop Before Kharif a) b) c) d) 2. Rabi a) b) c) d) 3. Summer a) b) c) d) 4. Total After Before After Quantity Money Crop yields (q/ha) Change Percentage

6. Decision making a. Decision making pattern in farm activities

Consultative decision Sl. No. Decision making activities Self decision Wife Son Individual consulted Brother Parents (indicate who) Neighbours / relatives Outsider (indicate who) Wife Decision by others Decision makers Son Brother Parents (indicate who)

1. 2. 3. 4. 5. 6. 7. 8. 9.

Choice of varieties Choice pattern of

crop

and

cropping

Manures, fertilizers and their use Plant protection chemicals and their use Marketing produce of crop

Livestock and their care Taking loan for farm Fixing time for agricultural operation Buying farm implements

10. a) Taking farm loan b) Loan amount

7. Employment generation
Number of mandays/annum Number of employment Before 1) On-farm employment 2) Off-farm employment overall 3) Overall After Change Percentage

PART-III KNOWLEDGE AND ADOPTION OF RECOMMENDED CULTIVATION PRACTICES IN COTTON

Knowledge level Sl. No. 1. a) b) c) d) 2. a) b) c) 3. a) b) 4. a) b) Statements Recommended varieties of cotton for cultivation DCH-32 DHB-105 Varalaxmi Jayadhar Sowing time First fortnight of May 15 25 May August to September Seed rate (acre) Seed drill : 3-4 kg/acre Hand sown : 2-2.4 kg/acre Seed treatment Concentration sulphuric acid 70 cc to 100 cc/kg of fuzzy seed at time 6-12 min Seed should be rubbed with paste of cow dung ash and water after rubbing the seed it should be dried in shade Before sowing dry the seeds thoroughly of 2 hours in solution of 5 g Emisan, 1 g Streptocline, 1 g Succinic acid in 10 lit of water with 6-8 kg seeds Recommended quantity of FYM to be applied/acre Irrigated : 4 t/ha Dryland : 2 t/acre Spacing in the field Hybrid : Row to row 90 cm Plant to plant 60 cm Local/variety : Row to row 90 cm Plant to plant 30 cm Fertilizer/acre N : 16 kg/acre P : 10 kg/acre K : 10 kg/acre Intercropping with cotton In dry regions intercropping done more and it is profit Cotton + onion (1:5) Cotton + chilli (1:1) Cotton + groundnut (1:3) Cotton + greengram (1:3) Cotton + soybean (1:3) Weed control What are the common weedicides Diuron/Lasso @ 500 g/acre Basaline @ 1 kg/100 lit of water Alachlor @ 1.5 3.0 kg of water Known Adoption level Reason for NonNot known adoption adoption

c)

5. a) b) 6. a) b) 7. a) b) c) 8.

a) b) c) d) e) 9. a) i. ii. iii.

10. a) i. ii. iii. iv. b)

11. a) i. ii. Iii.) b)

12. a)

13. a) b)

Pest control What are the common pest observed Pink bollworm Spotted bollworm Jassids, aphids, whitefly Cotton leaf roller What measures are to be followed to control major pests Name of the Chemicals Concentratio pest used n 14.5 Sc Indoxyl Pink 0.5 ml corbide bollworm 48 SC @ 0.2 synosas ml 50 EC Spotted Propanephos bollworm thiyodicarb 75 WP NSKE 1.5 m Jassids, Oxudemithy trips, mites, 25 EC methyl whiteflies Dicofol 18.5 EC 35 EC @ 1.5 lit/ha in 100 Leaf roller Endosulfan lit/water Disease control What are the major diseases observed Root rot Anthracnose Boll rot What control measures did you fallow to control major diseases? Name of the Chemicals Concentratio disease used n 2 g/lit of Root rot Thiram water 2 g/lit of water, copper Anthracnose Mancozeb oxychloride 3 g/lit Septomycine 2 g/lit of sulphate or Boll rot water mancozeb Do you know the preparation of NSKE Recommended Maximum number of NSKE sprays that can be given (4 times at an interval of 10 days) Recommended yield/acre Varieties/hybrids Yield obtain/acre

Problems encountered by the KVGB beneficiary farmers

Sl. No. 1. a) b) c) d) 2. a) b) c) d) 3. a) b) c)

Problems

Frequency

Percentage

Suggestions of beneficiary farmers about financing by KVGB

Sl. No. 1. 2 3 4 5

Suggestions

Frequency

Percentage

Appendix II : Organizational Structure

KARNATAKA VIKAS GRAMEENA BANK

ORGANIZATIONAL CHART HEAD OFFICE

Chairman Scale - VI

General Manager (Scale V) Administration

General Manager (Scale V) Advances

Senior Manager Personnel & Human Resources Developm ent Manager Industrial Relations Cell

Senior Manager Accounts & Investment

Senior Manager Stationary & Services Manager Stationary & records

Senior Manager Inspection

Senior Manager Vigilance (Sponsor Bank)

Senior Manager Planning & Developm ent

Senior Manager Advances

Senior Manager Marketing

Senior Manager Law & Recovery

Manager Informatio n technology

Manager Chairman s secretant

Appendix III: Schemes of KVG Bank KARNATAKA VIKAS GRAMEENA BANK RURAL BANKING TRAINING CENTRE LOAN PRODUCTS AND THEIR FEATURES
Name of Loan Product & Cir. VIKAS 1 NIRANTHARA 22/05, 43/05 Purpose and conditions I details Demand loan for all pigmy depositors for genuine needs. Pigmy a/c should have completed 1 year Repayment term

Sl No

Beneficiaries

Quantum of Loan

Rate of interest

Security Norms

3 times of pigmy Pigmy depositors deposit, maximum of Rs. 1,00,000/12.5%

Lien on Pigmy and coobligent

35 EMI

VIKAS SUVARNA 2 JL OD 22/05, 06/06, 95/06

Maximum Rs. 450/ For production and consumption activities All customers

11% upto 50,000 Pledge of jewels

TO brought into credit once in a year/ to be closed within 18 months Hyp. Of stock/assets

per gram OR 60% of 12% upto 100000 Market value of jewels 13% above 100000

VIKAS LAGHU 3. UDYAMI CREDIT CARD, 22/05, 50/05

All NFS borrowers It is working capital limit to small entrepreneur (not for purchase of fixed assets) having limit upto Rs. 1 lakh with satisfactory dealing for 3 years 20% of annual turnover maximum of Rs. 1,00,000/-

12% upto 50000, 12.5% 50000 to 2 lakhs and 13.5% above 2 lakhs

surety. Above 50000 = Hyp. Of stock/assets surety + 25% margin, mortage /CC on NA lands, NSC, KVP, LICP, Deposits

Limit is valid for 3 years but to be brought to credit once inn a year

Contd..

VIKAS SWAROJGAR CREDIT CARD 22/05

Working capital OR Block capital. Composite limit for small entrepreneurs.

1.AII customers of NFS activities 2. SHGs

lndividuals- Rs. 50,0001- max. For SHGs- as per need

12% upto 50000,12.5% 50000 to 2 lakhs & 13.5% above 2 lakhs As applicable to crop loans i.e. 9% upto 50000, 12% 50000 to 2 lakhs & 13% above 2 lakhs. 11% for home lighting, 12.5% for water heaters

Hyp.of stock I assets surety. Above 50000 = Hyp.of stock I assets surety + 25% margin, mortgage I CC on NA lands, NSC, KVP, L1CP, Deposits 1.Pledge of Agri. Produces in god owns. 2. Co-obligant 3. Goods to be insured. 1. Hyp of system 2. CC on property 3. Co-obligant 4. Collaterals like L1C policy, NSC, Deposits 5. Set be insured 1. Mortgage of proposed lands 2. CC on existing lands

To be brought to credit once in a year

VIKAS KAlYANA 22/05,60/05

To postpone selling of agri. produces as distress rates

All agriculturists. I n case of Non Loaneesland records are required. All our customers having assured income and repaying capacity SF & MF I Share croppers I Tenant farmers and also Big farmers

50 % of market value of goods stored, max of Rs.5,00,OOOI-; should credit 50% of loan to his crop loan account

6 to 12 months from the date of loan

VIKAS KIRAN 22/05, 58/06

For new solar home light I water heating systems

85 % of cost, Le. Margin = 15%

In 5 years, by; EMil Half yearly I yearly

VIKAS BHOOMI 22/05, 64/05

For purchase of agri. lands

Loan for purchase price+ other expenses. 100!}';) up to RS.50,0001-, 90 % above this. Max. for 5 acres

11% upto 25000, 12% 25001 to 2 lakhs & 13 % above 2 lakhs

7 to 12 years inclusive of 2 years gestation. Repayable half yearly I yearly.

Contd..

VIKAS RAITHA MITHRA TRACTOR YOJANA 22/05, 77/05, 209/06

-For purchase of tractors, trailers, power tillers, implements and second hand tractors. -MOU is there with 7 Coso -Incentives like free service, insurance and Reqn.by Companies.

Farmers having min. 6 acres of irrigated land OR 15 acres of dry land

90 % of cost of new tractor/ tiller / implement, 50% of valuation of second hand tractor/ implement, 70% of cost of repairs 1) 5 times of annual income, max of 45% of gross income. 2) 60 months gross salary with max cut back of 60 % 3) Max loan=50% of security offered. Margin 50%. Max loan Rs. 25 Lakhs Project cost is RS.1500/- upt01 000/per ton capacity, RS.2000/- per ton above 1000 ton capacity Borrower' contribution: 20% if SC/ST farmers I their Co-operatives, 25% jf others.

For new: 10.9 for 90% loan 10.75for85% -do10.5 for 80% -doFor II hand/repair 11 % upto 25000 12 %upto 2 lakhs 13% above 2 lakhs

Hyp of vehicle/ equipment; Charge on land, Co-obligant, To be insured.

9 yrs for new tractors 7 yrs of second hand tractors 5 yrs for repair purpose 7 yrs for Power tillers

VIKAS AADHAARA 22/05,46/05

For any business / personal needs as OSL 1000

For all persons who have the repaying capacity.

14%

REM / SRM of Urban, Semi-urban NA property. Guarantor/Surety

If, CC/SOO = yearly renewable, If, Term loan = in 7 years

10

VIKAS UGRAANA 22/05, 34/05 Scheme is valid upto 313-2007 only.

For construction of / repairing the godowns / storage houses at rural places except in Municipal Corpn. Areas. Capital investment subsidy scheme

All persons, Firms, APMCs, companies, Societies, SHGs, NGOs. - Back-end Subsidy available

As NFS activity 12% upto 50000, 12.5% 50000 to 2 lakhs & 13.5% above 2 lakhs

1. Mortgage of godown 2.Charge Creation on other landed I NA property

5 to 7 years depend on viability of project with max. gestation period of 23 months.

Contd..

11

AGRI- CLINIC I BUSINESS 22/05,29/06

To setup clinics / Agri. business centers

Graduates in Agri, Hort!, AH, Forestry, Dairy, Veterinary, Poultry, etc.

Individuals-Rs.10 lakhs Groups of 5 = Rs. 50lakhs Margin: Not it insists upto 5 lakhs. Above this 15 - 25 % 4 times of savings OR more amount in special cases. For Dairy activity RS.3 to 20 lakhs depending the activity. For Poultry activity RS.5 to 80 lakhs Margin money 10%. Rs26,800/- for model of 8X8X3 Cu. Mtr.tank. Rs34,2001for model of 10X10X3 Cu. Mtr tank .. 50% subsidy from NABARD.

11 % upto 25000' 12% upt02 lakhs 13 %above2 lakhs

Cir 17/05 - Not to insist for security upto Rs. 5 lakhs. Above Rs. 5 lakh =Hyp of movable assets created out bank loan, Mortgage of land and Surety Only joint liable document and no other security.

5 to 10 years inclusive of 2 years' gestation.

12

VIKAS KSHEMA Special Crop loans 22/05, 27/06, /4/06, 1/07, 2/07 For setting up of modern dairy farms for production of clean milk Establishing poultry and breading farms For processing units related to Dairy 1 Poultry

SHGs of tenant farmers 1 Share croppers 1 Oral lessees

11.5%

Once in a year as crop loan

13

VENTURE CAPITAL 22/05,61/05, 80/06

Agriculturists, individuals, group of entrepreneurs.

50% interest free loan, 40% of project bears interest as under: 11 % upto 25000, 12% 25001 to 2 lakhs & 13 % above 2 lakhs

(Cir 17/05) In different slabs

Upto 9 years including 2 years' gestation period

14

VIKAS JALA VARDHINI 22/05, 35/05

For construction of water storing structures in agri. lands

Only SCI ST farmers irrespective of extent of land holding

11 % upto 25000, 12% 25001 to 2 lakhs & 13 % above 2 lakhs

Charge on lands, Hypothecation of pump set

10 to 11 years with a gestation period of 2 years.

Contd..

15

VIKAS SABALACredit linkage for SHGs, 22/05, 25/06

For all genuine needs of SHG members

Members of SHGs

Upto 4 times of the savings in the SHG.

10.0 10.5

No security is required upto RS.3 lakhs; wherever possible charge on the house/lands owned by members. For < 3 lakh loan: Surety, wherever possible charge on the house/lands owned by members.

3 to 5 years depending upon the nature of loan

16

VIKAS KISAN SAMRUDHI CREDIT CARD. 22/05, 102/05

For production of crops (short term), working capital (medium term) and consumption needs ip the form of OVERDRAFT.

All agriculturists who are eligible to avail crop loans

Maximum of RS.5Iakhs.

For short term component: 9% uptp 50000 12% upto 2 lakhs 13% above2 lakhs For medium term loan component: 11 % upto 25000' 12% upt02 lakhs 13 %above2 lakhs

As applicable to Agri. Loans, i.e. charge on land, hypothecation of assets created, Co-obligant etc.

Limit is valid for 5 years to be reviewed annually. Short-term component to be brought to credit once in a year, term component depend on type of activity. The limit is for 3 years. Repayable in 2 to 7 years depending on the type of activity. 8 to 10 years with 2 years' gestation period

17

VIKAS SAHAJEEVA NA 22/05,26/05 Capital Investment subsidy scheme 22/05

For the productive activity

All informal groups consisting of 5 to 10 members All farmers / groups of farmers

Depending on the activity in project 50% of project cost 25% Margin 25% NABARD Subsidy

Depending on the activity as specified in cir. No. 9/05

Assets created out of finance and mutual joint guarantee. Charge on lands in case of agriculturists.

18

To promote organic farming

11 % upto 25000' 12% upt02 lakhs 13 %above2 lakhs

CC / Mortgage on land

Contd..

19

Credit linked Capital Subsidy Scheme,22/05 PERSONAL BANKING lOAN SHCMES Vehicle for personal use & Consumer Durables 9/06

For technical up gradation in SSI Units

Individuals, 25% Margin sole proprietors, 12% NABARD Partnership firms I Subsidy 15 months gross salary, if salary is credit in the branch; 10 months if otherwise.

12% upto 50000, 12.5% 50000 to 2 lakhs &13.5% above 21akhs 13% for vehicle, 13.5% for Con. durables 14% for vehicle, 14.5% for Con. durables

Hypothecation of machinery & Mortgage of Property

60 to 84 months

For salaried class

Salary Certificate, Surety

60 EMI or period of service available, whichever is less.

20

For non salaried class

50% of annual gross income

Post dated Cheque Surety

35 EM.

21

AGRI. DEMAND lOANS 10/06

To meet out expenses for Marriages, religious function, medical treatment etc.

22

VIKAS GENERAL CREDIT CARD 57/06,

Only for Rural and Semi-urban branches.

RS.5000/- per acre of irrigated land; max of Rs.50,OOO/-. Small 1 Marginal I Rs. 25001- per Other farmers acre ! of dry land; max of J Rs.25000/-. Credit worthy, permanent Limit for each borrower based on resident, no income; not defaulter to any institution, also exceeding Rs. women who have 1,25,000/-. No margin be economic activity insisted and repaying capacity

14.5%

Existing charge on land to continue. Co-obligant.

3 to 5 equal yearly instalments coinciding with the harvesting season.

12.5 %

No security be insisted, but to encourage to open pigmy or CD/"RD

Validity of Card is 3 years; subject to annual review.

Contd..

23

VIKAS UDYAM 101/06

For Small and Medium Enterprises (SME)

Units with investment in plant & machinery as under: TINY sector SSI units upto Rs 25 lacs, Other SSI units not exceeding RS.1 Crore, Medium Enterprises above RS.1 crore and upto RS.10 crore

Max. of RS.50 Lakhs; as overdraft/loan s, Bill limits, LCs/BGs, may be offered in one package. Margin upto 25%.

(as per cir.9/05) 12% upto 50000, 12.5% 50000 to 2 lakhs & 13.5% above 2 lakhs

Upto 5 lakhs collateral security not to insist but assets created are to be secured for loan and surety. Above 5 laks = (as per Cir 17/05) Hyp of stock assets, surety, Mortgagel CC, lien on NSC, KVP, Deposits, L1C policiesl vehicles valued not less than 50 % of loan amt.

a) Limit is valid for 3 years; subject to review every year. b) Term loans repayable within 7years in monthly 1 quarterly installments.

24

RURAL TOURISM 121/06

Construction / Repair/ extension of structures for the purpose of accommodation of tourist. For procuring furniture and such other equipments. For creating additional employment in tourism related services in rural areas

For new construction = max 15 lakhs, For repairs 1 renovations=1 o lakhs For capital requirements= 3 lakhs For other purposes = based on the genuine requirement.

3 to 15 years

Contd..

25

VIKAS BAHUMUKHA 168/06

A composite hassle free credit facility for meeting investment credit requirements related to farm development as well as contingencies and consumption needs

All farm loanees with satisfactory track record for a period of 3 years owning irrigated lands growing min of 2 crops in a year

Depends on value of security; Max eligibility is 50% of value of security OR 5 times of annual income subject to max of 5 lakhs whichever is less. Rs.30,8001- per hectare; to be released Rs.24,4001in I year and 6,4001I in second year. Disbursement in 2 3 inst.s. Margin 20% Back ended subsidy 30% Max. of 7750/~ based on the actual cost. Margin Min 10% on project cost.

As applicable to direct agi. Advances = 11 upto 25000, 12upt02 lacs 13 above 2 lacs.

Mortgage I charge on agricultural lands

Within 7 years; in half yearly I yearly instalments.

26

JATHROPA CULTIVATION 192/06

To grow Jathropa in un~ irrigated waste land

Any farmer

As applicable to Agri. Term loans= 11 upto 25000, 12upt02 lacs 13 above 2 lacs.

Contract farming Agreement with the company, Mortgagel CC on lands, surety. CC on House Spouse of applicant should join as co-obligant

12 years; including gestation period of 3 years

27

RURAL SANITATION 183/06

Construction of twin structure of toiler and bathroom

Customers having own houses, with income and repaying capacity.

10%

In 7 Years; In Yearly I Half Yearly I Monthly, depend on income.

IMPACT OF KARNATAKA VIKAS GRAMEENA BANK ON AGRICULTURE DEVELOPMENT OF BENEFICIARY FARMERS

JAYAPRADA B. DASHWANT

2007

Dr. K. A. JAHAGIRDAR Chairman

ABSTRACT

The study was conducted in Dharwad district during 2006-07. In Dharwad district, Dharwad, Hubli and Kalaghatgi taluks were purposively selected. Further from each taluk, 3 branches and from each branch 16 beneficiaries were randomly selected making a sample of 144. In the agriculture development dimensions, majority of beneficiaries (47.33% before and 18.06% after taking loan) were categorized as semi-medium income followed by asset acquisition (72.90% before and 22.50% after taking loan), consumption pattern (41.70% before and 13.90% after taking loan), land productivity for cotton (61.20% before and 51.40% after taking loan) and employment generation, 280 mandays before to 392 mandays after taking loan from KVG Bank. Majority beneficiaries, 90.30 per cent had knowledge about selection of cotton varieties and 83.33 per cent of them adopted it followed by sowing time (81.90% knowledge and 6.40% adoption and seed rate (68.06% knowledge and 90.28% adoption, respectively). About 55.60 and 48.62 per cent of respondents had knowledge about application of FYM and fertilizers and 52.00 and 51.40 per cent, respectively adopted. Majority (83.40%) of them aware about use of weedicides and 31.25 per cent of them adopted. Majority (88.90%) of respondents had knowledge about pest and 90.27 per cent regarding disease. But, 45.62 and 51.39 per cent, respectively had practiced control measures and 75 per cent of beneficiaries had knowledge about preparation of NSKE and 55.56 per cent adopted its preparation. Majority of the respondents belonged to middle age group, educated upto middle school had small land holdings. Cent per cent have highly cosmopolite, medium exposure to mass media, high extension contact, medium social participation and have high risk and medium credit orientation. Majority of them expressed problems in borrowing loan, utilization of loan for nonagriculture purposes, delay and repayment. And suggestions made by beneficiaries includes loan amount should be hiked (66.67%), procedure for loan should be simplified (59.02%), interest rate should be reduced (83.33%) and bank to consider the genuine reason for delay in repayment (55.50%).