Citation

Sharma HR. J. Rural Dev. 2006; 25(4): 507-536.

Copyright

(Copyright © 2006, National Institute of Rural Development of India)

DOI

unavailable

PMID

unavailable

Abstract

The study, based on NSS data, shows very high proportion of indebted farmer households, it varied from one-half to four-fifths in eleven major States of the country (Andhra Pradesh, Gujarat, Haryana, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Tamil Nadu and West Bengal). The data also show that in most of the states cultivation was the major source of income for more than one-half of the indebted farmer households and that more than 70 per cent of such households were marginal farmers. The amount of outstanding debt had positive and statistically significant relationship with size class of land possessed and per capita monthly expenditure in most of the States. Insofar as the purpose of borrowing was concerned, capital and current expenditure on farm business together accounted for more than one-half of the total outstanding debt in a majority of the States like Andhra Pradesh, Bihar, Chhattisgarh, Gujarat, Haryana, Himachal Pradesh, Jammu & Kashmir, Orissa, Uttar Pradesh and Uttaranchal, the debt outstanding to moneylenders and traders was around three-fifths in Andhra Pradesh and Rajasthan, two-fifths in Punjab and Tamil Nadu and one-third in Assam, Bihar, Haryana and Madhya Pradesh. And the empirical studies on socio-economic and agrarian background of the farmers who committed suicides have reported indebtedness, especially to input dealers and moneylenders, as one of the important factors leading to such deaths. Further, the results of regression analysis show that factors like average availability of credit per hectare of net sown area, the proportion of small and marginal farmers, share of institutional loans in total loans outstanding, share of productive loans in total loans outstanding, proportion of indebted farmer households with cultivation as the main source of income and proportion of irrigated area to gross cropped area and statistically significant effect on both the incidence and extent of indebtedness.

Language: en

Keywords

India; Asia; South Asia; debt; regression analysis; income; socioeconomic conditions; Andhra Pradesh; Eurasia; rural economy; agrarian reform; credit provision; empirical analysis; Gujarat; Haryana; Karnataka; Kerala; lending behavior; Madhya Pradesh; Maharashtra; Punjab [India]; Rajasthan; Tamil Nadu; West Bengal