While debt among farmers is no longer considered undesirable, ever-mounting debt and reduced repayment capacity surely are. The existing literature has found a deep connection between indebtedness and suicides among farmers and perceived it as a reflection of growing agrarian distress. Based on the findings of a primary survey conducted in Punjab, we try to assess the debt position of Punjab’s farmers, and present the magnitude and burden of debt, highlighting the farmers’ debt repaying capacity. The source and purpose of credit are discussed in detail and the factors affecting indebtedness have also been explored.
