Problem of debt among farmers of rural Haryana – A Sociological Analysis
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Date
2012
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Publisher
CCSHAU
Abstract
Rural indebtedness has deep roots in the country. The incidence of indebtedness is the highest in
Andhra Pradesh (82.00%) followed by Tamil Nadu (74.50%), Punjab (65.40%), Kerala (64.40%), Karnataka
(61.60%) and Maharashtra (54.80%). The state of Haryana has reported indebtedness among the farmers to the
extent of 50 to 53 per cent. The highest per farmer debt is reported from Punjab (Rs. 41576) followed by Kerala
(Rs. 33907), Haryana (Rs. 26007). In the last two decades,the suicide rate in the country has notably increased
from 7.9 to 11.5 per 0.10 million attributed to suicidescommitted particularly by the farmer community in the
country. Therefore, comprehensive study was conducted in Haryana with following specific objectives: (I). To
assess the nature, extent and sources of debt among rural farmers. (II). To know the causes of debtedness,
utilization and payment pattern of debt of farmers alongwith factors affecting. (III). To examine the socioeconomic and cultural problems faced by farmers during pre and post debted situation and their repercussions on
farming family. (IV).To analyse the implication of loan waiving scheme on socio-economic status of farming
family.
The sample of 400 debted respondents were selected from eight villages of two districts i.e. Karnal and
Bhiwani through systematic random sampling techniques. Data were collected through Interview Schedule and
analysed with suitable statistical techniques. Respondents have taken loans for productive and unproductive
purposes. On an average loan of Rs, 65542.00 was taken by respondents as an institutional loan. Kisan credit
card was also used by 54.50% of the respondents in both regions. Borrowing of non institutional loan was found
most common among the respondents, as 72.75% respondents have taken loan from non-institutional sources.
Maximum number of respondents (39.20%) have taken loan fromtraders and agents and 30.20% from landlords.
Rest 17.20% and 9.60% have taken loan from moneylenders and relatives. On an average loan of Rs. 105772.00
was taken by respondents from non-institutional sources. Maximum average amount of loan taken by
respondents was higher from non institutional sources than institutional sources. Respondents were found
repaying high amount of interest rate on the loan taken from non-institutional sources. Factors like age,
occupation, size of land holdings, size of family, educational level and mass-media exposure were found
significantly associated with the rate of interest charged for non-institutional loan. Repayment pattern of noninstitutional loan was found irregular. Multiple factors were found associated with the pattern of institutional and
non-institutional amount of loan taken by respondents. Two-third of the respondents (66.75%) could not repay
the loan due to repayment of previous loan followed by 56.25% due to crop failure, 53.50% due to high expenses
on social ceremonies and 51.25% due to low income. Likewise, nearly half of the respondents (49.75%) were not
repaying the loan due to large size of family, due to adverse climatic conditions, lack of irrigation facility
(48.50%) and high cost of inputs of crop (47.50%) etc. Although respondents were found burdened because of
outstanding loan in spite of that they perceived the loanas fruitful. More than half of the respondents (50.75%)
utilized the loan for the purpose for which they have taken the loan and rest 49.25% diverted the loan for
unproductive purposes. Respondents were also found facing manysocio-economic and psychological problems
due to outstanding loan.
Description
Keywords
Institutional loan, Non institutional loan, Kisan Credit Card, Loan waiving scheme, Crop insurance, Interest rate, Debtedness