Study of credit burden on small orange growers in Nagpur district of Maharashtra

Abstract

This study examines the credit burden on small orange growers in Nagpur district, Maharashtra, focusing on their credit utilization patterns and the resulting debt burden. Conducted across 12 villages with 120 growers, the research aimed to assess credit requirements, usage patterns, and debt implications. Results show that 71.67% of the borrowed credit was directed toward productive uses such as fertilizers and pest control, while 28.33% was used for unproductive purposes, including social and household expenses. The study also highlights a substantial debt burden, with an average loan amount of ₹1,34,273.83 per hectare. Growers repaid ₹1,03,575.00 over an average of 11 months and 9 days but retained a debt burden of ₹37,948.74, representing 28.26% of the total loan amount. The findings emphasize the need for timely credit access, reduced interest rates, and improved loan recovery measures to support small orange growers effectively and enhance their financial stability.