Magnitude and Determinants of Indebtedness Among Farmers in Punjab

The primary objective of this research paper is to check the position of farmers due to the problem of the agrarian crisis that exists in India as well as Punjab. A recent report presented in the Lok Sabha indicated that farmers from Punjab have the highest outstanding loans among northern states, amounting to Rs 1 04,064 crore. To know the exact situation of debt being taken by the farmers, the magnitude and severity of debt have been measured in three different zones of Punjab. The severity of indebtedness was mounting among farmers in the southwestern zone, which mostly produce cotton. As the magnitude of debt on marginal and small farmers increases, they are viciously trapped under it, which further leads to farmer suicide. The other objective of this paper deals with the determinants of indebtedness, which are leading them to critical situations. These factors are responsible for the mounting debt on these cultivators. So increasing indebtedness, crop failure, loss of livelihood, and farmer suicide further indicate the multidimensional nature of agrarian distress, so the government should help the aggrieved farmers by making policies in favour of them.