ADVERTISEMENTS:
Cause of Indebtedness # 1. Absence of necessary law:
The greatest cause of Indebtedness Is the absence of laws for protecting the debtors.
Even if there are some laws, but they are not sufficient to check and control the moneylenders.
ADVERTISEMENTS:
Cause of Indebtedness # 2. Neglect by the government:
Another cause of indebtedness is also the neglect by the government. Government should control over the rate of interest. Punishment to the moneylenders should be meted out charging higher rate of interest.
Cause of Indebtedness # 3. High standard of living:
Sometimes it so happens that in rural areas poor farmers have fallen a prey to the consumerist culture. He has been influenced by the city life and tried to have high standard of living by borrowing money from the sahukars.
ADVERTISEMENTS:
Cause of Indebtedness # 4. Extravagance:
Although most of the rural people are poor, (hey do not hesitate in taking loans to spend it on occasions like marriage, death anniversaries etc. They borrow because they think (hat if they do not spend on those occasions their image in the public eyes will be tarnished.
Cause of Indebtedness # 5. Ancestral debt:
Many poor farmers start their work with a heavy burden of ancestral debt. They always in need of loan to fulfill the social obligation. The Royal Commission on Agriculture has aptly described this situation, “the farmer is born in debt, lives in debt and dies in debt”.
Cause of Indebtedness # 6. Ignorance and illiteracy:
Ignorance of the poor farmer and also his illiteracy come In the way of his Indebtedness. Due to his ignorance, he is always exploited by the money lenders or sahukars.
Cause of Indebtedness # 7. Passion for land:
The farmers of the rural areas have a tremendous passion for land. They acquire land mainly by borrowing.
Cause of Indebtedness # 8. Excessive burden of land revenue and rent:
ADVERTISEMENTS:
The excessive land revenue with its rigid procedure of collection is also responsible for aggravating the problem of rural Indebtedness.
Cause of Indebtedness # 9. Poverty:
It is the basic cause of indebtedness. The poor fanner has to borrow for various reasons. He has to purchase various things related to agriculture, seeds, implements, fertilizers etc. He is not having any past savings that is why he has to borrow. Due to poverty he cannot repay it in time.
Cause of Indebtedness # 10. Litigation:
The rural farmers are always busy in different litigations. It may be civil or criminal litigations. They have been involved in disputes related to boundary lines, theft of crops, division of ancestral property. Inter-family and intra-family disputes etc. So they need to borrow money in order to meet the expenses of the court.
Cause of Indebtedness # 11. Addiction to drinking:
If the poor farmer becomes addicted towards drinking, then a good share of his income is spent for drinking. So he needs more money and borrow.
Cause of Indebtedness # 12. Unemployment:
Those fanners family who are unemployed have insufficient resources to maintain their family. So they always borrow money and involve themselves in debt.
Cause of Indebtedness # 13. Tricks of moneylenders:
Due to the ignorance and Illiteracy of the poor farmers, the moneylenders adopt many tricks. They have been found keeping false account. They purchase the crops of the farmers at a very low price. They charge high rate of Interest to the farmer.
Cause of Indebtedness # 14. Caste-status:
In Indian villages the moneylender usually belongs to the higher caste. Thus the debtors did not have the strength to oppose.