Analysing Farmer Indebtedness: Determinants and Repayment Constraints in Bikaner District, India
Kavita
Swami Keshwanand Rajasthan Agricultural University, Bikaner, Rajasthan, India.
Bhupender *
Swami Keshwanand Rajasthan Agricultural University, Bikaner, Rajasthan, India.
Vikram Yogi
Swami Keshwanand Rajasthan Agricultural University, Bikaner, Rajasthan, India.
Sumay Malik
Chaudhary Charan Singh Haryana Agricultural University, Hisar, Haryana, India.
Jaipal
Swami Keshwanand Rajasthan Agricultural University, Bikaner, Rajasthan, India.
Shubham
Chaudhary Charan Singh Haryana Agricultural University, Hisar, Haryana, India.
Kamal Choudhary
University of Queensland, Brisbane, Australia.
*Author to whom correspondence should be addressed.
Abstract
Farmer indebtedness in water-scarce regions poses a critical challenge to rural livelihoods and credit sustainability. This study examines 90 farm households in Bikaner district, Rajasthan—where 67.8% of households carry outstanding debt averaging ₹181.8 thousand each—to identify the key determinants of borrowing levels, default risk, and repayment constraints. Multiple linear regression explains 54.1% of variation in total loans, revealing that access to irrigated land (b = 0.495, p < 0.01), higher education (b = 0.234, p < 0.05), and greater reliance on non-institutional credit (b = 0.252, p < 0.01) significantly increase borrowing, while demographic and socio-economic factors such as age and non-farm income exert weaker effects. Logistic regression shows that older farmers (β = 0.779, p < 0.05) and those borrowing informally (β = 0.803, p < 0.05) face higher default risk, whereas larger landholdings (β = –0.140, p < 0.05) and off-farm income (β = –1.331, p < 0.10) enhance repayment capacity. The foremost barriers to loan servicing are low farmgate prices (64.8%), inadequate income (64.1%), and natural calamities (64.0%), compounded by crop failures, loan diversion, and excessive farm expenditure.
Keywords: Farmer indebtedness, loan determinants, repayment risk, non-institutional credit, repayment constraints