"Access to Agricultural Loans and Their Impact on Crop Productivity: A Study of Southern Odisha"

Abstract

This study examines the empirical relationship between access to agricultural credit and crop productivity in the tribal-dominated and underdeveloped districts of Southern Odisha. Despite the availability of government-led credit schemes, many small and marginal farmers continue to face structural barriers in accessing timely and adequate institutional loans. Utilizing a multistage stratified random sampling approach, data were collected from 370 farmers across key agricultural districts. The research employs Likert scale-based survey instruments and applies Pearson correlation and regression analysis to explore how loan accessibility, adequacy, and utilization influence agricultural output, particularly in paddy and millet cultivation. Findings reveal a significant positive correlation between institutional credit and crop yields, with credit utilization for quality inputs, machinery, and modern farming practices serving as key mediators. The study highlights that timely disbursement and effective loan use substantially improve farm productivity, suggesting the need for targeted policy interventions to strengthen rural credit systems in socio-economically disadvantaged regions. These insights have implications for enhancing inclusive agricultural growth, reducing rural poverty, and improving financial inclusion in tribal areas.