ABSTRACT
This chapter addresses significance that the problems of marginal and small farmers in Punjab. Punjab's farmers are reeling under debt. The intensity of the agrarian crisis can be judged from the fact that about 14 percent of marginal farmers and about 9 per cent of small farmers have become bankrupt, with their loans exceeding more than two years of their family income. Of the sampled farmers, 88 percent had an average debt of Rs 218,092 per household. The amount of debt per hectare was inversely related to farm size. It was the highest among marginal farmers, followed by small farmers and other farmers. The problems of indebtedness, depeasantisation and suicides must be solved through a multipronged strategy, which assures small farmers of a nominal rate of interest on credit, custom hiring of farm machinery, inputs at subsidised rates, better marketing, free health care and education facilities and a minimum level of income.
