Debt Cycles and Financial Vulnerability: A Comparative Study of Tenant Farmers in Haryana and Rajasthan

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Page: 368-372

Priyanka Jakhar, Subhash Chander, and Vinod Kumari (Department of Sociology, Chaudhary Charan Singh Haryana Agricultural University, Hisar, Haryana)

Tenant farmers often face extreme financial insecurity, making them particularly vulnerable to economic shocks and psychological stress. This study surveyed 320 tenant farmers in eight blocks across four districts of Haryana and Rajasthan. Before taking loans, farmers reported limited land access, heavy reliance on daily wage labour, and vulnerability to climatic variability, market volatility, and rising living costs. After obtaining loans, most respondents became trapped in spiralling debt cycles characterized by high interest rates. This indebtedness led to severe household financial distress, constrained cash flows and elevated psychological stress. Regional variations were notable: in Rajasthan, nearly 89% of surveyed farmers were ensnared in debt traps and faced more acute climate risks, whereas in Haryana, about 70% reported significant stress and dependence on wage income. Repercussions of indebtedness included disrupted livelihoods, increased family conflict, chronic borrowing behaviour, reduced healthcare spending, and forced asset liquidation. Psychosocial impacts were also significant, with affected farmers experiencing loss of self-esteem, persistent stress and social stigma. Overall, these findings underscore that, rather than alleviating financial hardship, loans tended to entrench cycles of debt and exacerbate socio-economic precarity among tenant farmers. The study emphasizes the need for improved institutional credit access, simplified loan procedures, and supportive policy measures to enhance financial resilience among tenant farmers.