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Farmers’ Perception of Causes and Consequences of their Indebtedness in Haryana, India

Author

Listed:
  • Jakhar Babloo

    (Department of Economics, Chaudhary Devi Lal University, Sirsa, India)

  • Kait Rohtas

    (Department of Economics, Chaudhary Devi Lal University, Sirsa, India)

  • Kumar Vijay

    (Department of Economics, Chaudhary Ranbir Singh University, Jind, Haryana, India)

Abstract

Subject and purpose of work: The study aims to highlight the perception of farmers regarding the causes and consequences of their indebtedness. Materials and methods: The study was based on primary data collected (by field survey) from a sample of 600 farmers. With regards to the selection of farmers or respondents, the proportionate sampling technique was employed. Percentage technique was used for data analysis. The data were collected in the first quarter of 2021. Results: It was found that 95.67% of the farmers (out of 600) reported low prices for agricultural output as being the main cause of their indebtedness, followed by crop failure (89.00%), the high cost of inputs (85.00%), high interest rates (61.17%) and small landholdings (58.83%). In addition, consequences reported by loanee farmers were deterioration in their social status (67.83%) and psychological stress (57.67%). However, positive changes experienced by farmers after repaying a loan were less than the negative experiences. Conclusions: The main causes of farmers’ indebtedness were crop failure and the high cost of inputs compared to the price of their produce. Due to their indebtedness, their economic and social status deteriorated and they experienced the feeling of insecurity.

Suggested Citation

  • Jakhar Babloo & Kait Rohtas & Kumar Vijay, 2022. "Farmers’ Perception of Causes and Consequences of their Indebtedness in Haryana, India," Economic and Regional Studies / Studia Ekonomiczne i Regionalne, Sciendo, vol. 15(1), pages 56-73, March.
    • Handle: RePEc:vrs:ecoreg:v:15:y:2022:i:1:p:56-73:n:3
    DOI: 10.2478/ers-2022-0005
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    More about this item

    Keywords

    indebtedness; Haryana State agriculture; debt types; consequences;
    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

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