Indian
Moneylenders at Work: Case Studies
of the Traditional Rural Credit Market in Dhanbad District, Bihar
By-
Hans-Dieter Roth
In
spite of the relatively extenstive network of government supported credit
institutions private moneylenders continue to dominate the agriculture credit
market scene. In 1951-52 nearly 70 per cent of all agriculture loans were given
by traditional moneylenders. In 1961-62 though the share of cooperative
agricultural credit had increased from 7.3 to 13.8 per cent private
moneylenders still enjoyed the lion’s share of the agricultural credit with a substantial
46.6 per cent of all farming loans which meant continuance of the traditional
dependence on the private moneylenders with his unscrupulous business
practices.
The
book based on a detailed study of selected villages in Dhanbad district in
Bihar enquires into traditional moneylenders and the resulting debt relations
between them and the debtor-farmers. The debt relations may be either pure loan
obligations or even personal dependency relationships as well as a combination
of both forms.
The
author finds that the traditional credit market is dominated by large scale
farmers-cum-moneylenders who also occupy high positions in rural administrative
bodies. The exorbitant interest rates usually charged by them not only create
debt obligations but also help establish dependency relations of a long-term
nature. A description of actual form of debt relations is presented with
samples of interest siphoning mechanism practised by moneylenders. The final
part discusses the various traditional forms of transfer of property rights,
which frequently are the inevitable outcome of previous debt commitments, and
their detrimental socio-economic effects on small farmers.
Part
of the author’s doctoral thesis, the book should be of great interest to
scholars in the field of agricultural credit and other related areas.
Hans-
Dieter Roth
was member of the Dhanbad Research Project of the South Asia Interdisciplinary
Regional Research Programme. He did his doctorate in agricultural economics
from the South Asia Institute of Heidelberg University. As Commissioner for
Industrial Locations of Baden-Württemberg International, Dr. Roth is taking
care of the promotion of the State of Baden-Württemberg as ideal location for
investors from Asian countries, including India.
ISBN 81-7304-730-8
2007 128p. Rs.200/ pounds 18.99
MANOHAR
PUBLISHERS & DISTRIBUTORS
4753/23 Ansari Road, Daryaganj, New Delhi 110002
Phones: 23284848, 23289100
Fax: 23265162
E-mail: manbooks@vsnl.com
sales@manoharbooks.com
To order your copy at www.manoharbooks.com
4753/23 Ansari Road, Daryaganj, New Delhi 110002
Phones: 23284848, 23289100
Fax: 23265162
E-mail: manbooks@vsnl.com
sales@manoharbooks.com
To order your copy at www.manoharbooks.com