Indebtedness: Field Notes on Farmers from Haryana, India

Babloo Jakhar, Manoj Siwach and Kait Rohtas

No 329867, Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej from Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI)

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.

Keywords: Agricultural; Finance (search for similar items in EconPapers)
Date: 2022-12-29
New Economics Papers: this item is included in nep-agr
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://ageconsearch.umn.edu/record/329867/files/pdf-156651-85101.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ags:iafepa:329867

DOI: 10.22004/ag.econ.329867

Access Statistics for this paper

More papers in Problems of Agricultural Economics / Zagadnienia Ekonomiki Rolnej from Institute of Agricultural and Food Economics - National Research Institute (IAFE-NRI) Contact information at EDIRC.
Bibliographic data for series maintained by AgEcon Search ().