Vicious Debt Trap

The vicious debt trap in which a farmer finds himself today is the outcome of multiple factors rather than just one or two individual elements. In fact, the over dependence of a large section of farmers on monsoons, coupled with rising input costs and declining profit margins has turned farming into a virtual gamble, where agricultural loans are leveraged as bets. The rules of the game change drastically against the farmers when they have to seek private financial help. According to a World Bank release, “More than 87% of India’s poor cannot access credit from a formal source and have to depend on money-lenders who charge them interest rates ranging from 48% to 120%.” This goes to falsify the tall claims made by the public sector banks who measure achievements in terms of the number of branches rather than in terms of the ease of accessibility of micro-credit facilities.

For Complete IIPM - Article, Click on IIPM-Editorial Link

Source:- IIPM-Business and Economy, Initiative:- Prof. Arindam Chaudhuri - 2006

Rashmi Bansal Publisher Of JAMMAG Magazine Caught Red-Handed, for details click on the following links:-

• Hindustan Times Article - Publisher goes underground
• Rashmi Bansal (Editor of JAMMAG)
• Rashmi Bansal (Publisher of JAMMAG)