Question

Explain debt trap in swapna's case

Answer 1

Dear Student,

Swapna is a small farmer and she grows groundnut on her three acres of land. She took a loan from the money lender inorder to do cultivation on her land. In the middle of the season, the crop is hit by pests and the crop fails. Though, Swapna sprays her crops with expensive insectisides and pesticides, it makes little difference. She is unable to repay the money lender due to crop failure and the debt grows over the year into large amount. ​​​​Next year, Swapna again takes a fresh loan for cultivation. Though it was normal crop year, but the earnings were not sufficient to cover the old loan. Thus, this is how she is caught in debt trap and she has to sell a part of her land to pay off the debt.

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