<abstract xmlns="http://www.w3.org/1999/xhtml">

<bold>Subject and purpose of work:</bold> The study aims to assess the nature, extent and sources of debt and the measures of the burden of debt on farmers.
<bold>Materials and methods:</bold> 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.
<bold>Results:</bold> 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.
<bold>Conclusions:</bold> 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.
</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.

Indebtedness Among Farmers in Haryana State, India

Economic and Regional Studies / Studia Ekonomiczne i Regionalne

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

{"article-title":"Indebtedness Among Farmers in Haryana State, India"}

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...

Indebtedness Among Farmers in Haryana State, India

Published Online: Oct 11, 2021

Page range: 373 - 384

Received: Jun 01, 2021

Accepted: Aug 01, 2021

DOI: https://doi.org/10.2478/ers-2021-0026

Keywords
indebtedness, farmers, loan, farm-size

© 2021 Babloo Jakhar et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Indebtedness Among Farmers in Haryana State, India

Published Online: Oct 11, 2021

Page range: 373 - 384

Received: Jun 01, 2021

Accepted: Aug 01, 2021

DOI: https://doi.org/10.2478/ers-2021-0026

Keywordsindebtedness, farmers, loan, farm-size

© 2021 Babloo Jakhar et al., published by Sciendo

This work is licensed under the Creative Commons Attribution-NonCommercial-NoDerivatives 3.0 License.

Keywords
indebtedness, farmers, loan, farm-size