Volume : 5, Issue : 9, September - 2016

CAUSES OF CO-OPERATIVE CREDIT DEFAULT

S. Sivasankar, Dr. B. Ramachandra Reddy

Abstract :

<p>&nbsp;A wide range of factors influence the level of default of the agricultural credit institutions. Although defaults are commonly attributed to adverse weather conditions, particularly to droughts/ floods, their basic causes lie much deeper and range from the non-viability of the agricultural occupation itself in some cases, lack of the forward/ backward linkages, infrastructural facilities, services which support agriculture, the socio-political environment in which the credit institutions are functioning to legal and their Government support available to the agricultural credit system, besides adverse weather conditions, affecting the output of crops, particularly in the rain fed areas. Default is often the results of combination of various factors which lead to cooperative default, under both the categories are discussed in the present study. A major portion of short and medium term agricultural credit in Y S R district is canalized by primary Agricultural Credit Societies (PACS). Therefore, a detailed investigation of the working of some of the PACS has been taken up. The period of the study extends up to the cooperative year ended June, 2015. The present study is to analyse the problems of cooperative NPAS at different levels of cooperative credit organisation in YSR district. For this purpose an intensive study of 18 PACS has been taken up. Based on the inductive investigation of the sample societies, division wise NPAS and examined the causes of cooperative credit default.</p>