Marathwada, a region highly susceptible to drought, faces significant agricultural challenges exacerbated by erratic rainfall and climate changes. In 2021, loans from licensed private lenders surged by 27%, mainly among small-scale farmers, with loan amounts spiking by 42%. Marathwada also recorded 1023 farmer suicides in 2022, an increase from 887 the year before.

Understanding local responses to these income shocks is crucial for developing targeted support and policies to affected communities.

The survey targeted 2,234 respondents primarily involved in agriculture, across districts known for their vulnerability to drought. Participants were asked about their main occupation, changes in rainfall patterns, and potential income impacts due to poor rainfall. The survey also explored their preferred coping strategies, such as taking loans or engaging in government employment schemes like MGNREGA.

Findings indicate diverse coping mechanisms influenced by local political and economic conditions:

• Income shock responses: A significant portion of respondents (50%) would choose to work under MGNREGA, highlighting the scheme’s critical role in providing alternative employment during agricultural downturns.
• Economic vulnerability: About 30% of respondents would resort to borrowing money to manage the income shock caused by drought, often from high-interest private lenders due to lack of access to formal banking services.
• Reluctance to change jobs: Despite the severe impact on their primary income source, only 4% of respondents considered switching jobs or taking up new employment, underscoring the need for better support and opportunities within their local regions.