This year nearly Rs 82 crore worth groundnut has been grown in Pavagada taluk is the estimation.
According to the agriculture department report, groundnut sowing has taken place in 60,815 hectares. The estimated crop per hectare is 11.25 quintal (one acre-4.5 quintal) which means total production is 68.42 lakh quintal.

Market cost
If the Pavagada market cost is fixed at Rs 1200, then nearly Rs 82 crore worth groundnut has been grown is the calculation.

However, the farmers and the traders argument is that there is nothing to be happy about growing Rs 82 crore worth groundnut.

Since the last ten years the groundnut crop is under loss and hence the loss should be estimated for all these years. If the loan taken to invest on groundnut crop is calculated, then the loans the Pavagada farmers owe runs into hundreds of crores. This is the correct picture, is what they argue.

Loan sharks
The moment everyone is coming to know that there is a good crop this year, all the banks, cooperative societies and private bankers are coming forward to collect the loans and there are also efforts to forcibly collect them.
But the scenario is quite different as many farmers have even pledged their wives mangalyas (the sacred chain tied during the marriage) to the banks and taken loans to invest on groundnut.

The only consolation to the farmers is that after ten years they are getting back something. But if the whole thing is looked at objectively then it can be seen that there is hardly anything they get.

Hence, what the economic experts and agriculture experts have to think is whether Pavagada farmers have the capacity to repay the loans.