Impact of Credit Gap for Turmeric Farmers in Erode District, Tamil Nadu

India is the largest producer, consumer and exporter of turmeric in the world and its value added products play a vital role in the world trade. The study focus to the estimation of differences in costs and returns (borrower and non-borrower) of turmeric growers. Two forty samples from bhavani block under erode district were selected for the study. 120 for borrower and 120 for non-borrower was selected. The objective of the study is to assess the credit gap for crop loan availed by marginal and small farmers. Analysis udsed for the study is cost of cultivation. The results revealed that human labour occupies a major share followed by fertilizer and manure, sucker cost, interest on working capital, insecticide, irrigation charges, machine labour, animal labour and so on. Similar trend was observed in non-borrowed farms. Though the scale of finance offered by commercial banks is adequate for turmeric cultivation, a positive deviation was witnessed for efficient turmeric farmers. Hence, Government should take necessary efforts in creating custom hiring centers (CHC), it may help to reduce the labour usage and cultivation cost.