Agrarian distress in India, built-up over time, has further deteriorated recently. At the height of the farm output, Indian farmers are a disappointed lot. Despite spectacular rise in agricultural production, they continue to languish in poverty.
A devastating drought or other shock can force small-scale farmers in developing economies to sell off assets or cut meals and other consumption to cope. Even the risk of a shock can stifle their future by pushing them to underinvest in profitable but risky activities like cotton farming.