MSc

The study entitled “Integrated Credit in Agriculture – Role of Farmers’ Service Societies (FSS) in Thrissur District” was undertaken with the following objectives:
1. To examine the extent of integrated credit in agriculture provided by FSS in Thrissur district.
2. To assess the financial performance of FSS in Thrissur district.
3. To measure the attitude of farmers towards the service provided by FSS and
4. To identify the problems and constraints, if any, faced by FSS.
The study was conducted in Thrissur district. The nine FSS in the district were ranked based on selected performance indicators and three societies were selected each at top level, middle level and bottom level. Both primary data and secondary data were used for the study. Primary data were collected from ninety respondents (thirty from each society) randomly selected from among the members with the help of an interview schedule. Secondary data were collected from the books and records of sample societies and also by discussing with the officials. Percentage, growth under AAGR and likerts scale of summated ratings were the major statistical tools used for analysis.
When the extent of integrated credit was examined it was revealed that, in terms of AAGR, Killimangalam FSCB performed well regarding disbursement of agricultural credit and Adat FSCB performed well regarding distribution of agricultural inputs, marketing of agricultural produce and distribution of consumer goods. When the financial performance of the sample societies were assessed using ratios, it was found that the owned fund to borrowed fund ratio won favourable in the case of Killimangalam FSCB and the time deposits to total deposits ratio was favourable for Kodakara FSCB. The credit deposit ratio and credit to working capital ratio showed a decreasing trend for all the three banks. The interest paid to interest received ratio was favourable for Kodakara FSCB and Killimangalam FSCB whereas the total expenses to total income ratio showed a slight decrease for all the three banks. The analysis of profitability ratio showed that Kodakara FSCB performed well as they started to each profit compared to the first 3 years.
Thus an analysis of financial performance of the three banks showed that compared to the other two banks, Kodakara FSCB is financially viable. This fact is supported by its profitability ratio and the other two ratios to find out efficiency in operation. The time deposits to total deposits ratio is also showing a decreasing trend for the bank. Adat FSCB is in the second place which incurred loss only during the last two years under study. The bank is less efficient in mobilization of funds as revealed by the ratios. The spread ratio also showed an increasing trend. As shown by the profitability ratio, Killimangalam FSCB had loss throughout the years under observation. Though the ratios are unfavourable for the bank, the amount of loss has been reduced during these years
Attitude of farmers was studied using some statements divided to sections namely credit – pre sanctioning aspects, credit disbursement aspects, credit-post credit follow up aspects, other services – marketing and other services. In the credit – pre-sanctioning aspects, the attitude of members of 3 banks B1, B2 and B3 is favourable to statements S1, S2 and S6 respectively and least favourable to statements S4, S6 and S4 respectively. In the credit disbursement aspects the attitude of members of three banks B1, B2 and B3 is most favourable to statements T2, T3 and T1 respectively and least favourable to statements T4, T1, T2 and T4 respectively. Regarding post credit follow up aspects the attitude of members of B1, B2 and B3 is most favourable to statement U4 and least favourable to statements U1, U2 and U6.
Regarding marketing aspects, the attitude of members of B1, B2 and B3 is most favourable to V2, V3 and V1 respectively and least favourable to V5, V1 and V4 respectively. Regarding other services the attitude of members of B1, B2 and B3 is most favourable to statements W2, W1 and W1 respectively and least favourable to W3, W4 and W4 respectively. The problems faced by FSS as identified by the study were, poor fund management, lack of creativity, mounting overdues and declining profitability. In order to satisfy the objective of service, co-operatives have to get reasonable profit. Therefore banks have to analyse their profitability, plan their funds efficiently and effectively utilise the workforce in order to survive in this competitive environment.