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Indebtedness: Field Notes on Farmers from Haryana, India

Author

Listed:
  • Jakhar Babloo

    (PhD, Chaudhary Devi Lal University, Sirsa, Department of Economics; Barnala Rd, Sirsa, Haryana 125055, India)

  • Siwach Manoj

    (PhD, Prof., Chaudhary Devi Lal University, Sirsa, Department of Economics; Barnala Rd, Sirsa, Haryana 125055, India)

  • Kait Rohtas

    (PhD, Assoc. Prof. of Chaudhary Devi Lal University, Sirsa, Department of Economics; Barnala Rd, Sirsa, Haryana 125055, India)

Abstract

The aim of the paper was to assess the debt burden on farmers and suggest policy solutions. The study is based on a field survey of six hundred indebted farmers. It showed that the average amount of debt per sampled farmer was INR 563,960 (USD 6,945.24).1 The study found a skewed debt access to semi--medium and medium farmers. The largest debt share is mostly observed among semi-medium, medium, and large farmers, as the top 33% of farmers account for 71.8% of the debt share. By contrast, the bottom 48% (marginal farmers) are left to struggle with only 14.8% of the debt share. The source-wise distribution shows that one-third of debt share is still acquired from non-institutional sources. It depicts that non-institutional sources are also engaged in the disbursement of loans to agriculture sector at higher and compound interest rates. Furthermore, commission agents’ or arhtiyas’2 role is dominant among the farmers. Nearly half of the debt amount is still used for non-productive activities. This is one of the major challenges for policymakers to resolve the problem of indebtedness.

Suggested Citation

  • Jakhar Babloo & Siwach Manoj & Kait Rohtas, 2022. "Indebtedness: Field Notes on Farmers from Haryana, India," Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics, Sciendo, vol. 373(4), pages 121-139, December.
  • Handle: RePEc:vrs:zerpae:v:373:y:2022:i:4:p:121-139:n:6
    DOI: 10.30858/zer/156651
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    References listed on IDEAS

    as
    1. Sidhu, R.S. & Gill, Sucha Singh, 2006. "Agricultural Credit and Indebtedness in India: Some Issues," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 61(1), pages 1-25.
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    More about this item

    Keywords

    agrarian distress; farmers; indebtedness; loan;
    All these keywords.

    JEL classification:

    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance
    • P32 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions - - - Collectives; Communes; Agricultural Institutions
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects

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