No escaping the debt trap!

-The New Indian Express

A new worrisome report released by the government-owned NABARD claims that 79 per cent of Telangana farmers are struggling to repay their loans on time.

HYDERABAD: Every successive government has implemented scheme after scheme “to save” the debt-ridden farmer, yet none of them seem to have made any impact. A new worrisome report released by the government-owned NABARD claims that 79 per cent of Telangana farmers are struggling to repay their loans on time, based on a survey conducted in 958 households of the State, spread across 48 villages in six districts. No wonder then that the State ranks high on farmer suicides.

The debt per household in Telangana ranges between Rs 80,000-Rs1,20,000, with an average outstanding debt of Rs 91,407. While debt by itself is a problem of economic insecurity for these farmers, the source of debt will decide the intensity. For instance, debts pending with private lenders and loan sharks carry far more threats compared to ones taken from banks or micro-finance institutions.

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