Give an account of how moneylenders kept the small and marginal farmers in a debt-trap at the time of independence.

Question

Accepted Answer

At the time of independence, moneylenders and traders exploited small and marginal farmers. Farmers had to borrow to meet their initial investment needs, like buying seeds, implements and fertilisers, and to meet social expenditure on marriages, deaths and other social ceremonies. Once the farmers fell into the clutches of these moneylenders, they continued to be exploited through high interest rates and manipulation of accounts by the lenders, who took advantage of the illiteracy of the farmers and imposed unfavourable loan conditions. All this was done to entangle the farmers in a debt-trap. The inability of the farmers to pay back the loans added to their agony and frustration, and they even started taking the extreme step of committing suicide, as they were victims of the vicious circle of poverty.