Enhancement of Tobacco Production Through Credit Program of Zari Taraqiati Bank Limited in Rural Area of District Mardan

Abstract

This crop play key role in generating income to rural farming community. Therefore ZTBL has given credit to the farmer of District Mardan for boosting tobacco production. Seeing to its importance the study was conducted to analyze the effect of credit program of ZTBL on different size of farms. The universe of the study consisted of  tehsils, Mardan, Takhth Bahi and Katlan and on the basis of more loani purposively from each tehsil two villages Gujar Garhi, Rustum, Lund khwar, Sharegarh, Katlang and Jamal Garhi were respectively selected. Total number of  beneficiaries of the tobacco was 54, which distributed in tehsil Mardan 11, Takhth Bahi 7, and Katlang 36. Through questionnaire data were collected and using percentages, correlation and paired t-test statistical techniques for data analysis. Average tobacco production per hectare after credit was found 1993 Kg and before1677 Kg and the result was found non-significant which explains that statistically credit has no positive effect on tobacco production while statistically shows a little improvement by credit program. Average cost per hectare after credit was Rs.159718 and before Rs.81756 and the result was found highly significant at .05 levels. The average return per hectare after credit was Rs.265078 and before was Rs.122392 and difference was Rs.142685. The return after credit was found more than before and the result was found highly significant. The correlation in land and tobbaco production was .151 which explains that one unit land increase boost 15.1% production of tobacco crops.  Problems were found high costs of the inputs; complicated procedure of the bank, high interest rate and non availability of loan in time etc by bank in the study area. On the basis of problems and constraints, recommendations were fit for future policy formulation which is given as loan should be provided to farmers according to requirements; interest rate should be decreased in future; quality seed should be provided on low price for boosting the tobacco production in the study area.

Keywords: Enhancement, Tobacco Production, Credit Program, Rural Area  Mardan