Sociological Dimensions of Interest Rates on Non-institutional Loans among Farmers in Haryana

Description

Page: 74-80

Subhash Chander, Jatesh Kathpalia, Vinod Kumari, and Bas Kaur (Department of Sociology, Chaudhary Charan Singh Haryana Agricultural University, Hisar, Haryana)

This paper explores the sociological dimensions of interest rates on non-institutional loans among farmers in Haryana state. The universal challenge of debt negatively impacts farmers’ livelihoods and agricultural sustainability creating a cycle that hinders investment in modern farming technologies and sustainable practices. In the agrarian landscape of Haryana, where farming is a predominant occupation, access to credit is crucial for sustaining agricultural activities. However, many farmers resort to borrowing from non-institutional sources due to various reasons such as limited access to formal credit institutions, bureaucratic hurdles, and urgent financial needs. Non-institutional loans often come with exorbitant interest rates, leading to a multitude of social and economic implications for the farming community. The research supports for comprehensive measures, including risk mitigation strategies, enhanced credit access, minimum support prices and sustainable agricultural policies, to break the cycle of farmer debt and ensure the well-being of those crucial to our food systems.