Impact of Micro Finance on Agriculture Development in District Badin of Sindh Province of Pakistan

The impact assessment of micro finance on agriculture development in district Badin was performed. The results showed that the total credit disbursement by various commercial banks in Badin district was 103.97, 72.84, 90.33, 39.97, 139.44, 103.37 and 131.28 million rupees during the years 2010-11, 2011-12, 2012-13, 2013-14, 2014-15, 2015-16 and 2016-17; while total amount of loans under short and long term schemes during this period was 103.97, 72.84, 90.33, 39.97, 139.44, 103.37 and 131.28 million rupees, respectively. The cross partial correlation coefficient results suggested that total credit (TCR) is significantly correlated with GNP. This gives greater association of agricultural production with micro credit, where fertilizer is highly correlated with seed and production is highly correlated with cropping intensity. The seed is highly correlated with pesticides which are all important purchased inputs. The regression analysis indicates that the total institutional credit was a significant determinant of seed, fertilizer, pesticides, cropping intensity and GNP. In all cases, the total credit appears also to be highly significant. The flow of agricultural credit from institutional sources resulted in significant expansion after the participation of commercial banks which made appreciable efforts to accomplish the objectives and captured substantial market. The results of the present study show that the institutional credit proves to have more impact on farm productivity. It is suggestible that in Badin district, the credit availability and loan size, farmers’ education and landholding structure need to be improved for all farmers and farmers are not homogenous in their demand for credit and subsequently in their credit constraints, and this has important effect on their technical efficiency.