Financial analysis of rural households: Evidences from sub-mountainous region of Punjab

The present study was carried out to assess the status of assets, income and liabilities of Punjab farmers. The results revealed that about 24 per cent of the farmers owned two tractors each while 70 per cent of-the farmers had one tractor each and 6.25 per cent of the farmers did not have any tractor. Over 27 per-cent marginal and 12.50 per cent small farmers did not have any tractor. About 81 per cent of the sampled-farmers were having one trolley, 12.50 per cent had two trolleys and 6.25 per cent did not have any trolley. Overall, 2.5 per cent of the farmers did not have any electric motor, and the remaining 97.50 per cent-of the farmers were having one electric motor. However, 45.45 per cent of the marginal farmers did not have any electric motor. Total number of animals per farm was 2.56.The farm income constituted about 87 per cent of the total income. In farm income, the major source of income was from crops which was 68 per cent followed by dairy i.e. 19 per cent. The non-farm income constitutes about 12 per cent of the total income. In the study, 25 per cent of the farmers were bankrupt and about 68 per cent of income is taken as-loan. There is need to evacuate the farmers from the debt trap by improving the credit delivering system.