To take care of their basic needs, small farmers and landless labourers usually have to borrow money from big money lenders in the village. The loans are given at a high interest rate. The farmers, thus, have to keep borrowing money in order to repay their loans. This leaves very little for the farmers and they often find it difficult to survive.
The government can take the following steps to improve the condition of the farmers who get into debt:
1. The government can create more employment opportunities in the villages. They can undertake developmental work, thereby providing employment to these farmers so that they have enough money to fulfil their basic needs.
2. Banks should be established in every village. These banks should give loans to these farmers at lower rates of interest.