In India, nearly 80% of farmers are small farmers like Sekar:
- To purchase expensive high-yielding seeds, fertilizers, and pesticides, small farmers borrow money from private moneylenders or traders at high interest rates (often 3% to 5% per month).
- If monsoon rains fail, pests destroy the crop, or crop market prices crash, farmers cannot repay the principal or interest.
- To survive and purchase food, they borrow more money, sinking into a vicious debt trap that frequently causes severe psychological and economic distress.