Agricultural indebtedness
Topic: Land Use, Farming Systems and Cropping Seasons in India · NCERT: Class 12, Ch 3 "Land Resources and Agriculture"
Meaning
Agricultural indebtedness is the debt trap many small and marginal farmers fall into. Modern farming needs costly inputs such as seeds, fertilisers, pesticides and diesel. To buy them, farmers borrow from banks and from moneylenders, who often charge high interest.
If the crop fails because of drought, flood or pests, or if prices are low, the farmer cannot repay the loan. They then borrow again, and the debt keeps growing. NCERT links this debt trap to farmer suicides in several states (NCRB data; verify current). Crop insurance under PMFBY (2016) and Kisan Credit Cards are among the responses.
Example
In the rainfed drylands of Maharashtra, a small farmer may borrow to grow cotton. A delayed monsoon then ruins the crop, and the loan cannot be repaid.
Don't confuse with
- Lack of commercialisation: that problem is about small farmers growing food grain mainly for their own families. Indebtedness is about the burden of loans.
Related concepts
- Problems of Indian agriculture
- Agricultural underemployment
- Pradhan Mantri Fasal Bima Yojana
- Digital Agriculture Mission