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Indebtedness Among Farmers In Haryana State, India

Author

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  • Jakhar, Babloo
  • Kait, Rohtas

Abstract

Subject and purpose of work: The study aims to assess the nature, extent and sources of debt and the measures of the burden of debt on farmers. Materials and methods: The study was based on primary data collected (by field survey) from a sample of 600 farmers selected from Haryana state in India. With regards to the selection of farmers/respondents, a proportionate sampling technique was employed. For the analysis of the collected data, average (or mean value) and percentage techniques were used. The data were collected in January, February and March, 2021. Results: The study revealed that the average amount of debt per sampled farmer is 563 960 rupees. This amount of debt is very high. Institutional sources played a major role in loan disbursement to farmers. Of the total amount owed, one third of all the debt was incurred from non-institutional sources at a higher rate of interest; 67.03% was incurred for productive purposes and the remaining 32.97% of debt was incurred for non-productive purposes. Non-productive debt adds nothing to agricultural production. 67% of all farmers in the state belong to marginal and small farm-size category. Thus, at small size of land holdings, at higher rate of interest charged by non-institutional sources and non-productive loans are the main cause of farmer indebtedness. Conclusions: Farmers have been trapped under the burden of debt and are not in a situation to pay their loans back within the prescribed period of time.

Suggested Citation

  • Jakhar, Babloo & Kait, Rohtas, 2021. "Indebtedness Among Farmers In Haryana State, India," Economic and Regional Studies (Studia Ekonomiczne i Regionalne), John Paul II University of Applied Sciences in Biala Podlaska, vol. 14(3), September.
    • Handle: RePEc:ags:plecrs:314763
    DOI: 10.22004/ag.econ.314763
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    Cited by:

    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 Utilisation And Repayment Behaviour: Evidence From Farmers Of Haryana," Economic and Regional Studies (Studia Ekonomiczne i Regionalne), John Paul II University of Applied Sciences in Biala Podlaska, vol. 16(2), June.
    3. Singh Suninder & Singh Abhey & Lal Choote, 2022. "Constraints in the Functioning of Primary Agricultural Cooperative Societies in Haryana State, India," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 15(4), pages 509-518, December.

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    Keywords

    Agricultural Finance;

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