Author: Dr. Bandna Ranga

Abstract: Actually, India is a land of villages and agriculture is the main occupation in rural areas. As we know, in the rural Indian environment, the issue of debt has long been seen as a problem rather than a sign of future success. This is primarily because rural household budgets, particularly those of small-holding farmers and all other farmers with low incomes, are no longer in deficit. A large number of studies on the issue of indebtedness in rural India have depicted the fact that in rural Maharashtra, Andhra Pradesh, Karnataka, Madhya Pradesh and Punjab farmers commit suicide due to the burden of huge debts every year. Some of the major causes of India's agricultural debt include the country's unpredictable weather or uncertainty of monsoon, the weight of previous debt, the long lag between farming income and expenses, the small size of land holdings, wasteful spending on social ceremonies, and a high rate of illiteracy. It is a well-known fact that there will be a risky consequence if debt is simply used to cover household budget deficits rather than being employed for worthwhile endeavors. In recent years, the average cost of agricultural production has risen and market prices of farmers’ products are not more supportive. Moreover, initiatives taken by the government remain ineffective and beyond the truth. Here it is noteworthy to say that in the current scenario, both the borrower's and the lender's interests suffer because the amount of debt continues to rise over one's ability to repay it. As a result, the web of debts has become a harsh reality of the agriculture sector and farmers of rural India have to face a burden of debts in daily life. The NCRB data indicates that 2,96,438 farmers died due to suicide between 1995-2014 in different states of India. On the contrary, this data shows that a total of 11,290 farmers and agricultural labourers committed suicide in 2022 throughout India. The present research paper is a modest attempt to find out the causes and effects of agricultural debts in India.

Keywords: agricultural indebtedness, farmers, rural areas, small land holdings, farmers suicide.

Article Info: Received: 29 May 2025; Received in revised form: 25 Jun 2025; Accepted: 28 Jun 2025; Available online: 30 Jun 2025

DOI: 10.22161/ijels.103.116