Demand for credit for production in the rain-fed sub-sector of the Sudan

BABIKER IDRIS, UNIVERSITY OF KHARTOUM, SUDAN
ABDEL WAHAB EL BASHIR, THE AGRICULTURAL BANK OF SUDAN, SUDAN
Abstract: This study is concerned with estimating the demand for credit for production in the rain-fed subsector of the Sudan, for both traditional and mechanized agriculture. It is based on primary data collected througha field survey in Gadaref and North Kordofan states. To determine the factors influencing the demand for credit an econometric model was employed. The results of the study revealed that, there is a high demand for credit for production in the rain-fed sub-sector especially in traditional agriculture; that the demand for credit is highly influenced by the ability and capacity of a borrower as indicated by farm size and the use of agricultural inputs, and that the demand for credit is inelastic with respect to all variables including interest rate.
Keywords: Demand, Credit, Sudan, Rain-fed sub-sector, Traditional agriculture