Nature and Dimensions of Wilful and Non-Wilful Default in Primary Agricultural Credit Societies’ Overdues: A Study of West Godavari District of Andhra Pradesh

International Journal of Economics and Management Studies

© 2016 by SSRG - IJEMS Journal

Volume 3 Issue 7

Year of Publication : 2016

Authors : Dr. K. Sudhakara Rao

10.14445/23939125/IJEMS-V3I5P104

How to Cite?

Dr. K. Sudhakara Rao, "Nature and Dimensions of Wilful and Non-Wilful Default in Primary Agricultural Credit Societies’ Overdues: A Study of West Godavari District of Andhra Pradesh," SSRG International Journal of Economics and Management Studies, vol. 3,  no. 7, pp. ):25-34, 2016. Crossref, https://doi.org/10.14445/23939125/IJEMS-V3I5P104

Abstract:

In order to sustain and accelerate the production in agriculture, supply of adequate credit and its use in proper direction are prime importance. One of the most disquieting features of the institutional credit in India is the incidence of ever-increasing overdues. The high level of overdues restricts the capacity of lending institutions to recycle funds, besides threatening the prospects of continued flow of external credit for agricultural development. Agricultural loans are overdue because of wilful default and circumstantial or genuine default. In the overdues of co-operative credit institutions majority of the large farmers are considered to be wilful defaulters, while the default of small farmers is mostly due to natural causes. What factors contribute to wilful and non-wilful default? Who are the wilful defaulters and what is their incidence in different regions of the west district of Andhra Pradesh? What is the nature and dimensions of wilful and non-wilful default? To seek answers to these and other related questions, 120 defaulted and 60 non-defaulted borrowers were interviewed and the results are incorporated in this article.

Keywords:

  Non-wilful default, overdues, PACS, wilful default.

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