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Indebtedness among Marginal and Small Farmers in Rural Punjab

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Rupinder Kaur, Sukhvir Kaur, Anupama, Gurinder Kaur and Gian Singh

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Indian Journal of Economics and Development
Year : 2018, Volume : 14, Issue : 2
First page : ( 302) Last page : ( 308) 
Print ISSN : 2277-5412. Online ISSN : 2322-0430.
Article DOI : 10.5958/2322-0430.2018.00134.8

Indebtedness among Marginal and Small Farmers in Rural Punjab

Kaur Rupinder1,*, Kaur Sukhvir4,  Anupama2, Kaur Gurinder3, Singh Gian2

1Assistant Professor, Department of Economics, Punjabi University, Patiala-147002

2Professors, Department of Economics, Punjabi University, Patiala-147002

3Professor, Department of Geography, Punjabi University, Patiala-147002

4Assistant Professor, Dashmesh Khalsa College, Zirakpur-140603 (Mohali)

*Corresponding author’s email: rupinderkaur0076@gmail.com

JEL Codes E43, G 21, G23, Q12, Q18.

Online published on 22 June, 2018.

Abstract

The present paper is an attempt to examine indebtedness among the marginal and small farmers in rural areas of Punjab. The study revealed that85.46 percent of the marginal and small farm households in the rural areas of Punjab were under debt. The average per sampled household debt was `336272.39. The average per sampled farm household debt is found to be more in the case of small farm-size category as compared to the marginal farm-size category. The debt per acre was inversely related to farm size. An average sampled farm household incurred 66.29 percent of the total debt from the institutional agencies. The share of institutional agencies in the total debt increased with the increase in farm size. Due to the application of New Agricultural Technology, the marginal and small farmers borrowed funds mainly for growing crops. These farmers were unable to meet their consumption expenditure with their income. To fill this gap these farmers also borrowed for family maintenance. The analysis clearly brought out the fact that the marginal and small farmers were partly dependent upon the commission agents and money-lenders who charged exorbitant rates of interest.

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