Evaluating the Financial Performance and Impact of Primary Agricultural Cooperative Societies on Farmers in Haryana, India

Singh Suninder (), Singh Abhey () and Jakhar Babloo ()
Additional contact information
Singh Suninder: PhD, Chaudhary Devi Lal University, Department of Economics, Barnala Road, Sirsa, Haryana, 125055, India
Singh Abhey: PhD, Chaudhary Devi Lal University, Department of Economics, Barnala Road, Sirsa, Haryana, 125055, India
Jakhar Babloo: PhD, Central University of Odisha, Department of Economics, Sunabeda, NAD Post Office, Koraput – 763004 Odisha, India

Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics, 2025, vol. 384, issue 3, 74-107

Abstract: AimThe study evaluates the financial viability of primary agricultural cooperative societies (PACS) in Haryana and their impact on agricultural costs, returns, and production. It also examines farmers' loan repayment behavior and challenges in accessing credit. Material and MethodsUsing both primary and secondary data, the research surveyed 540 respondents and applied methods like averages, compound annual growth rate (CAGR), and cost–benefit analysis. ResultsFindings indicate that PACS in Haryana have shown financial growth, with increased owned funds and deposits, yet they remain dependent on borrowings. Loan recovery rates are uneven, and 70–85% of PACS operate at a loss, highlighting the need for financial strengthening and government support. PACS credit significantly improves costs, returns, and the benefit–cost ratio for beneficiary farmers, contributing to financial sustainability and higher agricultural output. Costs and gross returns increased across all beneficiary categories, reinforcing the positive impact of PACS credit. Additionally, while most farmers repay their loans, a small percentage defaults due to restrictive loan conditions and policy expectations. The study also identifies various challenges faced by farmers in accessing PACS credit, underscoring the need for policy reforms. ConclusionsThis study will support policymakers in shaping a holistic approach toward securing the long-term viability of PACS.

Keywords: primary agricultural cooperative societies; loan repayment behavior; financial viability; impact analysis; credit structure; główne spółdzielnie rolnicze; zachowania w zakresie spłaty pożyczek; rentowność finansowa; analiza wpływu; struktura kredytowa; Q13; Q14; R51; G5; G23 (search for similar items in EconPapers)
JEL-codes: G23 G5 Q13 Q14 R51 (search for similar items in EconPapers)
Date: 2025
References: Add references at CitEc
Citations:

Downloads: (external link)
https://doi.org/10.30858/zer/204787 (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:vrs:zerpae:v:384:y:2025:i:3:p:74-107:n:1003

DOI: 10.30858/zer/204787

Access Statistics for this article

Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics is currently edited by Sylwia Łaba

More articles in Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics from Sciendo
Bibliographic data for series maintained by Peter Golla ().