The Impact of Credit on Qordhul Hasan (QH) Sharia Transactions on Production Risks and Nutritional Content of Cassava Commodities

¹ Department of Agribusiness, Universitas Islam Malang, Malang 65144, Indonesia
² Department of Agrotechnology, Universitas Islam Malang, Malang 65144, Indonesia
³ Center for Food Security Studies of Faculty of Agriculture, Universitas Islam Malang, Malang 65144, Indonesia.

¹ Corresponding author: This email address is being protected from spambots. You need JavaScript enabled to view it.

Abstract

This study examines how Sharia-based financing affects producer behavior and cassava farming performance. The study aims to analyze producer responses to credit through Sharia-compliant Qardhul Hasan (QH) transactions, compare producer attitudes toward production risk, evaluate input allocation, and assess cassava nutritional content. The analytical methods used include descriptive statistics, coefficient of variance (CV), Cobb-Douglas production function, and laboratory analysis to determine nutritional attributes. The results show that 90% of producers perceive Sharia-based transactions as providing financial comfort and convenience. Production risk increases with QH financing, indicating producers' willingness to assume greater farming risks. Similarly, increased labor use is associated with higher cassava farming risk, indicating that QH stimulus funds encourage producers to undertake additional productive activities. Significant positive factors influencing production are land area, labor for fertilization, and labor for harvesting, while negative factors are urea fertilizer and labor for planting. Laboratory analysis revealed the nutritional profile of cassava, including protein, fat, moisture, ash, carbohydrates (based on differences), calories, starch, pH, crude fiber, total acid, total sugars, reducing sugars, vitamin C, and amino acids. This study recommends continued support for financing within the framework of Sharia-compliant transactions as a financial incentive for cassava farmers.