Efficacy Of Agricultural Loans On Crop Productivity: A Sustainability Accounting Perspective From Indian Small And Marginal Farmers
Main Article Content
Abstract
The global population continues to rise, while agricultural productivity has not kept pace. Ensuring food security requires higher production supported by access to quality seeds, fertilizers, irrigation, and modern technology all dependent on adequate credit. This study examines the impact of farm loans on the crop productivity of small and marginal farmers in Telangana State, India, and tests the moderating effect of technology adoption. Beyond its economic focus, the research conceptualizes agricultural loans as financial mechanisms that enhance accountability, sustainable performance, and efficient resource use within a sustainability accounting framework. Data were collected using a convenience sampling method from selected districts of Telangana. Instrument validity and reliability were confirmed through pilot testing, Cronbach’s alpha, and sample adequacy tests (KMO and Bartlett). The proposed model was validated through Structural Equation Modeling (SEM) using Smart PLS. Findings reveal that agricultural loans significantly improve crop productivity, while technology adoption strengthens this effect. The integration of financial access and technology promotes sustainable and accountable agricultural outcomes. The study provides insights for policymakers to design credit systems aligned with farmers’ needs and promote responsible resource utilization through technological support. The research is limited to selected districts in Telangana State.
Article Details
Section
This work is licensed under a Creative Commons Attribution 4.0 International License.
How to Cite
References
1. Acharya, S. S. (2006). Agricultural marketing and rural credit for strengthening Indian agriculture. NABARD.
2. Adams, C. A. (2017). Conceptualising the contemporary corporate value creation process. Accounting, Auditing & Accountability Journal, 30(4), 906-931.
3. Ashrit, R. R. (2023). Estimation of technical efficiency of Indian farms for major crops during 2013–2014 and 2017–2018: A stochastic frontier production approach. SN Business & Economics, 3(2), 54.
4. Baker, M., Gray, R., & Schaltegger, S. (2023). Debating accounting and sustainability: from incompatibility to rapprochement in the pursuit of corporate sustainability. Accounting, Auditing & Accountability Journal, 36(2), 591-619.
5. Balkrishna, A., Rana, A., Sharma, R. S., Sharma, G., & Arya, V. (2022). Indian farmer and government initiatives: Policies, gaps and way forward. Indian Journal of Ecology, 49(3), 1036–1043.
6. Bebbington, J., & Unerman, J. (2018). Achieving the United Nations Sustainable Development Goals: an enabling role for accounting research. Accounting, Auditing & Accountability Journal, 31(1), 2-24.
7. Chayanov, A. V. (1991). The theory of peasant co-operatives (D. W. Benn, Trans.; V. Danilov, Intro.). I.B. Tauris / Ohio State University Press. (Original work published 1927). https://core.ac.uk/download/pdf/76295499.pdf
8. Druckman, P. (2018). ‘Corporate reporting and accounting for externalities’: a practitioner view. Accounting and Business Research, 48(5), 523-524.
9. Food and Agriculture Organization of the United Nations. (2017). The future of food and agriculture: Trends and challenges. FAO. https://openknowledge.fao.org/server/api/core/bitstreams/2e90c833-8e84-46f2-a675-ea2d7afa4e24/content
10. Gaur, R. S., Bunkar, R. C., Zade, S., & Sidharth, S. (2024). Participatory extension approaches: Engaging farmers as stakeholders. In Emerging paradigms in agricultural extension and development (Vol. 1).
11. Gulati, A., & Juneja, R. (2022). Transforming Indian agriculture. Indian Agriculture Towards 2030, 9–37.
12. Guntukula, R., & Goyari, P. (2020). Climate change effects on the crop yield and its variability in Telangana, India. Studies in Microeconomics, 8(1), 119–148.
13. Gupta, N., Pradhan, S., Jain, A., & Patel, N. (2021). Sustainable agriculture in India 2021. Council on Energy, Environment and Water.
14. Kumar, A., & Jain, R. (2013). Growth and instability in agricultural productivity: A district level analysis. Agricultural Economics Research Review, 26, 31–42.
15. Kumar, A., & Sharma, P. (2022). Impact of climate variation on agricultural productivity and food security in rural India. SSRN. https://doi.org/10.2139/ssrn.4144089
16. Kurma, M. V. (2024). Agriculture credit: Impact on income expenditure. Anveshana’s International Journal of Research in Regional Studies, Law, Social Sciences, Journalism and Management Practices, 9(1).
17. Lal, R. (Ed.). (2024). Managing soil drought. CRC Press / Taylor & Francis. https://api.pageplace.de/preview/DT0400.9781003844860_A47565879/preview-9781003844860_A47565879.pdf
18. Lele, U., & Goswami, S. (2017). The fourth industrial revolution, agricultural and rural innovation, and implications for public policy and investments: A case of India. Agricultural Economics, 48(S1), 87–100.
19. Mahto, R., Sharma, D., John, R., & Putcha, C. (2021). Agrivoltaics: A climate-smart agriculture approach for Indian farmers. Land, 10(11), 1277.
20. Mandal, S. K., & Maity, A. (2013). Precision farming for small agricultural farm: Indian scenario. American Journal of Experimental Agriculture, 3(1), 200–217.
21. Mert, I. (2022). Accounting evaluation between certainty of past costs and uncertainty of future values and measurement in accounting. In Assessment of Accounting Evaluation Practices: A Research-Based Review of Turkey and Romania (pp. 87-110). Cham: Springer International Publishing.
22. Ministry of Agriculture and Farmers Welfare. (2022). Doubling of farmers income. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1883177
23. Mittal, S., & Mehar, M. (2016). Socio-economic factors affecting adoption of modern information and communication technology by farmers in India: Analysis using multivariate probit model. The Journal of Agricultural Education and Extension, 22(2), 199–212.
24. Mohan, R. (2006). Agricultural credit in India: Status, issues and future agenda. Economic and Political Weekly, 41(12), 1013–1023.
25. Narula, S. (2022). Confronting state violence: Lessons from India's farmer protests. Columbia Human Rights Law Review, 54, 89.
26. National Bank for Agriculture and Rural Development. (2022). Annual report 2021–2022. NABARD. https://www.nabard.org/nabard-annual-report-2022-23.aspx
27. National Sample Survey Office (NSSO). (2020). Situation assessment survey of agricultural households, 2019. Ministry of Statistics and Programme Implementation, Government of India. https://www.pib.gov.in/PressReleasePage.aspx?PRID=1753856
28. Ostry, M. J. D., Prati, M. A., & Spilimbergo, M. A. (2009). Structural reforms and economic performance in advanced and developing countries. International Monetary Fund.
29. Prasad, R. P., Gill, R., Gupta, V., Bordoloi, P., Ahmed, M., & Rao, R. K. (2022). Recent advances in agricultural science and technology for sustainable India.
30. Rao, A. S., Chandran, M. S., Bal, S. K., Pramod, V. P., Sandeep, V. M., Manikandan, N., & Singh, V. K. (2022). Evaluating area-specific adaptation strategies for rainfed maize under future climates of India. Science of the Total Environment, 836, 155511.
31. Sahu, R. S., & Tiwari, M. (2024). Ensuring sustainable livelihoods and inclusive growth of Indian smallholder farmers through organic farming: A systematic literature review. Socio-Ecological Practice Research, 6(3), 229–243.
32. Sava, A., Palukh, M., Zavytiy, O., & Semenyshena, N. (2017). THEORETICAL FOUNDATIONS OF ACCOUNTING IN THE MANAGEMENT SYSTEM. The Institute of Accounting, Control and Analysis in the Globalization Circumstances, (1-2), 21-28.
33. Schaltegger, S., & Wagner, M. (2006). Integrative management of sustainability performance, measurement and reporting. International Journal of Accounting, Auditing and Performance Evaluation, 3(1), 1-19.
34. Sunitha, G., Sunandini, G. P., Lavanya, T., Reddy, D. S., & Meena, A. (2023). Comparative economic analysis of adopters and non-adopters of seed-to-seed mechanization in maize: A case study of Jangaon district in Telangana, India. International Journal of Plant & Soil Science, 35(19), 1722–1727.
35. Telangana State Development Planning Society. (2020). Statistical yearbook 2020. Government of Telangana. https://www.planning.telangana.gov.in/page/_render?pid=MjI=
36. Thompson, T., & Gyatso, T. (2020). Technology adoption for improving agricultural productivity in Sub-Saharan Africa. College of Agriculture and Life Sciences, Virginia Tech.
37. Tilt, C. A. (2018). Making social and environmental accounting research relevant in developing countries: a matter of context?. Social and Environmental Accountability Journal, 38(2), 145-150.
38. World Bank Group. (2014). The World Bank Group A to Z. World Bank Publications. https://documents1.worldbank.org/curated/en/896931468189267370/pdf/The-World-Bank-Group-A-to-Z-2016.pdf
39. Yadav, I. S., & Rao, M. S. (2024). Agricultural credit and productivity of crops in India: Field evidence from small and marginal farmers across social groups. Journal of Agribusiness in Developing and Emerging Economies, 14(3), 435–454.
40. Zyznarska-Dworczak, B. (2020). Sustainability accounting Cognitive and conceptual approach. Sustainability, 12(23), 9936.