IDEAS home Printed from https://ideas.repec.org/a/vrs/zerpae/v373y2022i4p121-139n2.html
   My bibliography  Save this article

Indebtedness: Field Notes on Farmers from Haryana, India

Author

Listed:
  • Jakhar Babloo

    (PhD, Chaudhary Devi Lal University, Sirsa, Department of Economics, ; Barnala Rd, Sirsa, Haryana 125055, India)

  • Siwach Manoj

    (PhD, Prof., Chaudhary Devi Lal University, Sirsa, Department of Economics, ; Barnala Rd, Sirsa, Haryana 125055, India)

  • Kait Rohtas

    (PhD, Assoc. Prof. of Chaudhary Devi Lal University, Sirsa, Department of Economics, ; Barnala Rd, Sirsa, Haryana 125055, India)

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," Zagadnienia Ekonomiki Rolnej / Problems of Agricultural Economics, Sciendo, vol. 373(4), pages 121-139, December.
    • Handle: RePEc:vrs:zerpae:v:373:y:2022:i:4:p:121-139:n:2
    DOI: 10.30858/zer-156651
    as

    Download full text from publisher

    File URL: https://doi.org/10.30858/zer-156651
    Download Restriction: no
    File URL: https://libkey.io/10.30858/zer-156651?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Keywords

    agrarian distress; farmers; indebtedness; loan;
    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
    • G21 - Financial Economics - - Financial Institutions and Services - - - Banks; Other Depository Institutions; Micro Finance Institutions; Mortgages
    • E43 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Interest Rates: Determination, Term Structure, and Effects

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:zerpae:v:373:y:2022:i:4:p:121-139:n:2. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.