V2I9P17

Financial and Economic Challenges of Indian Farmers: A Comprehensive Study on Credit, Debt, and Market Dynamics

Anthony Savio Herminio da Piedade Fernandes^1*, Philomena Sebastiana da Piedade Fernandes²

Abstract

Agriculture continues to be the backbone of the Indian economy, employing nearly half of the country’s workforce. Yet, Indian farmers are persistently burdened by financial and economic challenges that threaten their livelihoods and agricultural sustainability. This research paper explores the spectrum of issues ranging from rising input costs, dependence on informal credit, inadequate crop insurance, and unstable market prices to post-harvest losses and weak access to institutional support. Drawing on secondary literature, policy analysis, and case studies, the paper critically examines the structural and systemic problems that perpetuate rural indebtedness and limit profitability. It also highlights the role of middlemen, inefficiencies in the Minimum Support Price (MSP) system, and gaps in warehousing infrastructure. The discussion further situates these challenges within broader national and global economic transitions. Finally, the paper presents actionable recommendations including strengthening rural credit mechanisms, expanding crop insurance, promoting income diversification, investing in storage and logistics, and enabling direct farmer–market linkages. The study emphasizes that addressing the financial and economic struggles of farmers are not only a moral imperative but also essential for achieving sustainable development, food security, and rural resilience in India.

Keywords:

Indian farmers, financial challenges, agricultural credit, rural debt, crop insurance, market instability, MSP, middlemen, post-harvest losses, agricultural economy