International Journal of Drug Delivery Technology
Volume 16, Issue 7s, 2026

Farmers' Debt Profile and Determinants of Borrowing: A Socio-Economic Analysis of Farmers' Existing Debts and Reasons Behind Loans

Irshad Ahmad Syed Bukhari1, Dr Radhakrishna M2, Dr Bajrang Lal Yadav3, Dr Anita Choudhary4, Nagendra Singh Bisht5, Aabid Ahmad Reshi6

1Research Scholar, NIMS University, Jaipur, India

2Associate Professor, NIMS University, Jaipur, India

3Associate Professor, Echelon Institute of Technology, Faridabad, India

4Associate Professor, DBS Global University, Dehradun, India

5Assistant Professor, Mind Power University, Bhimtal, India

6Research Scholar, NIMS University, Jaipur, India


ABSTRACT

This study examines farmers' debt profiles and the socioeconomic factors that influence borrowing behaviour, with an emphasis on outstanding agricultural loans. Using primary data obtained from 520 farmers in three districts (Anantnag, Baramulla, and Budgam), the study analyses patterns of indebtedness and perceptions of debt manageability using descriptive statistics, frequency analysis, ranking analysis, Chi-square testing, and ANOVA. The data show that the majority of respondents are small and marginal farmers, with landholdings of less than five acres and widely varying monthly farm incomes. The results show a moderate overall level of agricultural indebtedness, with farmers borrowing mostly for agricultural production, growing input costs, and off-season household needs. A ranking analysis reveals a significant demand for further government involvement in financial education and debt management awareness campaigns. There is a substantial correlation between income levels and opinions of debt manageability, but not between monthly farm revenue and the number of outstanding loans, according to the Chi-square test. Although variable variability calls for cautious interpretation, ANOVA results indicate no significant differences in opinions of debt manageability across income categories. Overall, the study highlights the continued reliance on credit across all income levels and stresses the necessity of focused financial literacy programs and legislative support to enhance farmers' ability to manage their debt sustainably.

Keywords: Financial Literacy, Debt Management, Agricultural Indebtedness, Farmers Literacy, Debt Profile, Financial Literacy Programs.

How to cite this article: Bukhari IAS, Radhakrishna M, Yadav BL, Choudhary A, Bisht NS, Reshi AA. Farmers' Debt Profile and Determinants of Borrowing: A Socio-Economic Analysis of Farmers' Existing Debts and Reasons Behind Loans. Int J Drug Deliv Technol. 2026;16(7s): 673-680; DOI: 10.25258/ijddt.16.7s.71

Source of support: None

Conflict of interest: None