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Indebtedness: Field Notes on Farmers from Haryana, India

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  • Jakhar, Babloo
  • Siwach, Manoj
  • Kait Rohtas

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," Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej 329867, Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI).
    • Handle: RePEc:ags:iafepa:329867
    DOI: 10.22004/ag.econ.329867
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    References listed on IDEAS

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    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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    1. Jakhar Babloo & Kait Rohtas & Kumar Vijay, 2023. "Loan Utilisation and Repayment Behaviour: Evidence from Farmers of Haryana," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 16(2), pages 286-316, June.
    2. Jakhar, Babloo & Kait, Rohtas & Kumar, Vijay, 2023. "Loan Utilization and Repayment Behavior: Evidence from Farmers from Haryana," Economic and Regional Studies (Studia Ekonomiczne i Regionalne), John Paul II University of Applied Sciences in Biala Podlaska, vol. 16(2), June.

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    Agricultural Finance;

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