Although much attention recently has been devoted to agrarian credit markets, the private moneylenders' grip on rural life and the ruthless exploitation of borrowers remains undiminished. This paper highlights the plight of cultivators in Punjab and their exploitation at the hands of moneylenders-cum-commission agents. The modus operandi of this class of moneylenders, by interlinking the credit and output markets and the consequences thus of such transactions have been analysed in a region-specific analytical study. Clearly, institutional credit is not commensurate with demand. An assessment of reform measures reveals that the entire focus is not in line with requirements and that alternative policy measures are needed.
