ROLE OF MICROCREDIT IN RICE AND ONION PRODUCTION: A STUDY IN SELECTED VILLAGES IN GOPALGANJ DISTRICT OF BANGLADESH

Abstract

This study examines the purposes of microcredit use and it‟s role in income generating activities in selected villages of the Gopalganj district in Bangladesh. The research objectives include exploring the socio-demographic status of microcredit users, identifying the purposes of microcredit use, and calculating the role of microcredit in income generation. Primary data was collected within January to June of 2022 from 90 rural households using a structured interview schedule, focusing on the utilization of microcredit in the onion and rice sectors. The findings reveal that microcredit was predominantly used for onion cultivation and rice production, indicating its significant support for agricultural activities. The benefit cost ratio (BCR) analysis demonstrates that onion farming yielded higher profitability compared to rice farming. Therefore, the study concludes that both rice and onion farming sectors are profitable. Farmers using microcredit in onion farming are being the most profitable. Recommendations include encouraging farmers to use microcredit for onion production, lowering the interest rates of microcredit to enhance benefits for borrowers, and improving the financial management skills of microcredit recipients through training and skill development activities. Overall, this study underscores the positive impact of microcredit in enabling income generation and improving livelihoods in the study area.