This study investigates the extent and magnitude of indebtedness among different categories of farmers in Uttar Pradesh, with special reference to Sitapur district, and their mode of credit utilization. Our sample of 100 farmers includes landless labourers and marginal, small and large farmers; the landless make up 93.33%. Most farmers prefer institutional sources of credit, but since they do not have the assets or collateral to borrow from institutional sources such as banks or SHGs, they take high-interest loans-from non-institutional sources of credit such as moneylenders, large farmers, relatives and friends-that need to be repaid monthly. Many farmers have suggested solutions and policy measures like additional sources of employment, incentives for marketing and government schemes that can change their situation. Policymakers need to work on these suggestions and boost labour force participation.
