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ORIGINAL ARTICLE
INDEBTEDNESS AMONG FARMERS IN HARYANA STATE, INDIA
Babloo Jakhar 1  
,   Rohtas Kait 1  
 
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Department of Economics, Chaudhary Devi Lal University, Sirsa, India
CORRESPONDING AUTHOR
Babloo Jakhar   

Department of Economics, Chaudhary Devi Lal University, Sirsa, Barnala Road, Sirsa, 125055, Sirsa, India
Submission date: 2021-06-29
Final revision date: 2021-07-18
Acceptance date: 2021-08-06
Online publication date: 2021-09-30
Publication date: 2021-09-30
 
Economic and Regional Studies 2021;14(3):373–384
 
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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.
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REFERENCES (5)
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GoH (2013). Working Group Report on Productivity Enhancement of Crops in Haryana. Haryana Kisan Ayog. Available at: http://www.haryanakisanayog.or... (20.06.2021).
 
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GoH (2020). Statistical Abstract of Haryana 2018-2019. Department of Economic and Statistical Analysis, Haryana. Available at: http://esaharyana.gov.in/en-us... (20.06.2021).
 
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Gupta, R.V. (1997). R.V. Gupta Committee Report for Agricultural Loan. Reserve Bank of India.
 
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NSSO (2013). Income, Expenditure, Productive Assets and Indebtedness of Agricultural Households in India. N ational S ample Survey Organisation. Available at: http://mospi.nic.in/sites/defa... (20.06.2021).
 
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RBI (2019). Credit Reach Report of the Internal Working Group to Review Agricultural Credit. Reserve Bank of India, 1-15.
 
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