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DOI: https://doi.org/10.63345/ijrmp.v15.i8.1
Dr. Abhishek Kumar Singh
Assistant Professor
Department of Commerce
M.M.H.College , Ghaziabad (Uttar Pradesh) India
Dr. Inamur Rahaman
Assistant Professor
Department of Commerce
M.M.H.College , Ghaziabad (Uttar Pradesh) India
Mohd Hamid
Research Scholar
Department of Commerce
M.M.H.College, Ghaziabad (Uttar Pradesh) India
Abstract— The present paper tries to establish the extent to which short-term institutional credit for agriculture through the Kisan Credit Card (KCC) has helped in improving the productivity levels of crops, incomes from agriculture and financial autonomy of farmers’ households. A cross-sectional survey of 480 agricultural households – 240 KCCs and 240 non-KCCs – was carried out in three districts of western Uttar Pradesh for the crop year 2023-24. A logit model was used to find out the correlates of KCCs while the average treatment effects on the treated (ATET) was worked out by PSM with nearest-neighbour and kernel estimates for input usage, yield, income and reliance on non-institutional sources of credit. A FAI, based on five variables, was constructed by PCA. KCC households showed an ATET of 12.3% higher wheat yield, 20.1% higher income from farm business per hectare, and 22.6 percentage points lower dependence on moneylenders. The FAI was 0.176 points higher among KCC households. It seems that the credit-productivity relationship works mainly through input intensification and no distress sale.
Keywords: Kisan Credit Card, institutional credit, farm productivity, financial autonomy, propensity score matching, agricultural households
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