Devkanya Jagdale is astounded and disturbed by the visuals of the opulent Ambani wedding that were splashed across media in recent weeks. A farmer, she belongs to Dharashiv village in Maharashtra’s Marathwada — a region with a high rate of farm distress and farmer suicides, it is equally infamous for its excessive spending on weddings and dowry demands that push its farming families into crippling debt. The wedding conducted by billionaire Mukesh Ambani for his younger son reportedly cost around ₹5,000 crore.
“Now every family, especially the groom’s side, will expect at least a semblance of grandeur during marriage ceremonies. No one can match the Ambani wedding, but many will attempt to stretch their budgets,” Jagdale reasons worriedly. “You will see the number and value of loans soaring this season,” she warns direly.
The cycle of financial ruin and despair that inevitably follows is not unique to Maharashtra — echoed in farming communities across India.
Data from the Situation Assessment of Agricultural Households and Land and Holdings of Households in Rural India, 2019 (NSS 77th round), starkly mirrors this troubling reality.
Marriage loans
The size of loans taken by agricultural households for marriages and other ceremonies tends to be inversely proportional to the size of the farm holding. This suggests that small landholders are more likely to borrow money for marriages and other ceremonies than large landholders.
For those holding less than 0.01 hectares, 12.8 per cent of total outstanding loan is towards marriages and other ceremonies. This is one of the highest percentages across all land-size classes in India, indicating a significant reliance on loans for social obligations among the smallest landholders.
Interestingly, the data shows that 50.3 per cent of loans taken by households in this category comes from professional moneylenders, and 10 per cent from relatives and friends.
Landholders with 0.01-1 hectare show a decreasing trend in borrowing for marriages and other ceremonies (0.01-0.40 ha: 9.8 per cent; and 0.40-1 ha: 7.7 per cent). But the percentage remains relatively high, indicating that social expenses remain a significant reason for borrowing in this category. More than 15 per cent of loans for these households come from professional moneylenders.
The agricultural census categorises farmers with less than 1 hectare as marginal and those holding 1-2 hectares as small farmers. Notably, over 86 per cent of farmers in the country fall into the small and marginal categories. A significant section of marginal farmers have obtained loans from non-institutional sources.
Those holding 1-4 hectares have a further reduced percentage of loans for marriages and other ceremonies ( 1-2 ha: 5.8 per cent; and 2-4 ha: 4.6 per cent). This indicates that the reliance on loans for marriages and other ceremonies, as also on moneylenders, decreases as the landholding size increases.
For landholders with more than 4 hectares, the percentage is at the lowest (4-10 ha: 5.3 per cent; and 10-plus ha: 0.4 per cent). These groups are the least likely to borrow for marriages and other ceremonies, potentially due to greater financial stability or alternative funding sources.
Socioeconomic pressure
Furthermore, 93.1 per cent of loans availed by households with less than 0.01 hectares was for non-agricultural purposes. Households with 0.01-0.04 hectares used 71 per cent of their loans for non-agricultural purposes. Additionally, households holding 0.41-1 hectare utilised 54 per cent of loans for non-agricultural purposes.
The higher percentage of loans for marriages and other ceremonies among small landholders may reflect socioeconomic pressures to meet social obligations despite limited financial resources — namely prioritisation of social customs over economic prudence in financially constrained households.
“Small landholders borrowing heavily for non-productive purposes like marriages lead to a cycle of debt, as these loans do not contribute to income generation or economic improvement,” says farmer and activist Sunanda Kharate. She calls for targeted financial literacy programmes and support for small landholders to better manage social expenditures and avoid high-interest loans for such purposes.
Borrowing behaviour
The data highlights the role of cultural factors in borrowing behaviour. Marriages and other ceremonies are significant social events in many cultures, often necessitating substantial expenditure regardless of economic capacity. As landholding size increases, loans are deployed more into income-generating activities like farm and non-farm businesses
The Union government, citing the National Crime Records Bureau (NCRB), reported that the leading causes of suicides include family problems, illness, and economic issues. Among farmers, the reasons include indebtedness, crop failure, drought, and socio-economic and personal issues. Notably, the causes also encompass marital problems, dowry disputes, and decline in social reputation.