Resource centre on India's rural distress

Denied Crop Loans, Maharashtra Farmers Go Back To Moneylenders -Parth MN

Mumbai: He delayed it as long as he could but when he realised that he had no other option, Pandurang Shinde, 33, swallowed his pride and asked his relatives for a loan in June. “It is not the best feeling,” he said. “But I was running out of time. I borrowed Rs 50,000--I needed that money for the cropping season starting in June.”

Crop loans are critical for the agrarian cycle and are used to fund the purchase of farm inputs--seeds, fertilisers, pesticides, and so on-- ahead of the cropping season. A small farmer from Vadi, a village in central Maharashtra’s Parbhani district, Shinde had applied for a crop loan in May this year, but it had not come through because he had a pending loan.

Please click here to read more.