Agriculture in Karnataka is plagued by many problems; like lack of credit facilities, lack of marketing facilities, lack of incentives, lack of transport facilities, lack of scientific price, rural indebtedness which make it impossible for the farmers to repay his loan and interest. And this is quite common; interest becomes a heavy liability if the loan is taken from non-institutional sources at high rates of interest. The accumulated liability of principal and compound interest can something become crippling of the borrower in forced to mortgage on sell his land losing thereby their only mean of livelihood. In some cases, indebtedness and failure to pay can become one of the important causes for farmers’ suicide Radhakrishna 2007).To compare the extent of indebtedness among the farm families with suicide incidence and other farm families in Davangere district selected for analysis. large farmer from institutional sources (44.73%) compared to the small farmers (26.17%) thus, accessibility to institutional borrowing is relatively more for large farmers. Among the SC/ST category, both small and large farmers owed more outstanding debt to non-institutional sources, compare to institutional sources. 66.66 percent of the farmers with crop failure had high level of outstanding debt. Where only 30.39 percent with is respect the families without any crop failure.
