Role of Technology and Credit in Improving Farm Incomes in Rainfed Regions in Andhra Pradesh

Rama Rao, C A and Samuel, J and Kumar, S and Raju, B M K and Dupdal, R and Venkateswarlu, B (2014) Role of Technology and Credit in Improving Farm Incomes in Rainfed Regions in Andhra Pradesh. Agricultural Economics Research Review, 27 (02). pp. 187-198. ISSN 0974-0279

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Improving the productivity of rainfed agriculture and income of farmers is important to achieve sustainable and equitable growth. This paper has examined the role of technology and credit, the two important factors of agricultural growth, in increasing farm incomes using farm-level data from three rainfed districts, namely Adilabad, Mahabubnagar and Rangareddy of Andhra Pradesh for the year 2010-2011. For the study, optimum crop plans were developed in a linear programming framework, and the results have indicated considerable scope for enhancing farm incomes by re-allocation of resources, adoption of improved technologies and enhancing access to capital or credit. Improved technology could increase the net returns of farmers by 20-84 per cent, depending upon their farm categories in the study districts. In the absence of credit, the net returns declined up to 80 per cent, especially for small farmers. In the absence of credit, the suggested optimum farm plans are not income-maximizing, and were found to lead to inefficient use of resources, especially of land.

Item Type: Article
Divisions: RP-Resilient Dryland Systems
CRP: CGIAR Research Program on Dryland Systems
Uncontrolled Keywords: Rainfed agriculture, Agricultural technology, Credit, Linear programming, Andhra Pradesh
Subjects: Others > Agriculture-Farming, Production, Technology, Economics
Depositing User: Mr Ramesh K
Date Deposited: 02 Mar 2016 07:02
Last Modified: 02 Mar 2016 07:02
Official URL:
Acknowledgement: This paper is an output of National Agricultural Innovation Project (NAIP)-Component I sub-project “Policy and Institutional Options for Inclusive Agricultural Growth” funded by the Indian Council of Agricultural Research, New Delhi.
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