Question

Why are majority of farmers in India under huge debts?

Answer 1

Majority of farmers in India are under huge debts due to the following reasons:
•They are unable to pay back their loans due to high rate of interest.
• Poor farmers do not have ample resources to increase crop yield which leads to failure in high crop production which in turn generates very less or no revenue.
• Poor farmers suffer from absence of collateral.

Answer 2

majority of farmers in India are under huge debts because of less services of the formal sources of credit informal sources of credit may use unfair means of getting the money back and they put high rate of interest due to which the loan becomes higher than the income of farmers and this leads to debt trap