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Peasant classes, farm incomes and rural indebtedness: An analysis of household production data

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  • Arindam Banerjee

    (Centre for Development Studies
    Institute of Economic Growth)

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    Abstract

    The crisis and stagnation in Indian agriculture have persisted for over a decade and are not showing any signs of reversal. Falling real product prices faced by primary commodity producers have been one of the central causes for escalating farm indebtedness. The gradual shrinkage of formal credit institutions in rural areas has simultaneously caused increasing dominance of private players in the credit market, rendering producers all the more vulnerable. A class analysis of household-level farm production data from two states reveals the pattern of income decline and rising indebtedness in rural areas. The deleterious implications that these processes have for future agrarian development call for effective price stabilization operations and, in the short run, a comprehensive debt-relief policy.

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    Bibliographic Info

    Paper provided by Centre for Development Studies, Trivendrum, India in its series Centre for Development Studies, Trivendrum Working Papers with number 410.

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    Length: 45 pages
    Date of creation: Mar 2009
    Date of revision:
    Handle: RePEc:ind:cdswpp:410

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    Related research

    Keywords: Agricultural Policy; Farm Households; House Hold Farm Production; Price Policy;

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    1. Mani, Sunil, 2009. "The Growth of Knowledge-intensive Entrepreneurship in India, 1991-2007," MERIT Working Papers 051, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
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