IMPACT OF AGRICULTURAL CREDIT ON PRODUCTIVITY OF WHEAT CROP: EVIDENCE FROM LAHORE, PUNJAB, PAKISTAN

TLDR

Farming sector financial needs have risen sharply over recent decades because of expanded use of fertilizers, biocides, improved seeds, and mechanization. The study examined how agricultural credit affects wheat productivity in Lahore, Punjab, Pakistan. Data were gathered from United Bank Limited loan recipients and comparable non‑loanees across three strata of Lahore district using a structured questionnaire, and multiple regression analysis was employed to assess credit effects. Results indicated that agricultural credit significantly enhances agricultural transformation and increases farmer participation in production.

Abstract

Financial requirements of the farming sector have increased tremendously over the last few decades due to the extended use of fertilizers, biocides, improved seeds, mechanization etc. The study in hand was carried out to check the impact of credit on the productivity of wheat crop in District Lahore, Punjab, Pakistan. United Bank Limited (UBL) was selected as a representative of the institutional credit sources. Primary data were collected through a well structured questionnaire by dividing the district into three strata. Two villages were selected randomly from each stratum and then out of the list of loanees provided by the UBL, ten were randomly interviewed from each village. An equal number of non-loanees were also selected for the purpose of comparison. Multiple regression analysis was carried out for making of analysis. Findings showed that agricultural credit plays an important role in facilitating the transformation of agriculture and raising the participation of farmers in production process.