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Synopsis Poverty is a crucial problem of third world countries as sources are limited. Population is growing at an alarming rate, land-base is shrinking, employment avenues are decreasing and on the other hand modern living needs more spending. Majority of the people are under debt. Poverty is a curse itself. Indian agriculture, not only provides food and fiber, people seeks employment in agriculture. Thus agriculture is the backbone of Indian economy. In the villages, majority of the population belongs to two main sections of society viz., marginal farmers and landless agricultural labourers. The marginal farmers are not economically viable units, because many times, he majority of the farmers have to depend on other jobs. The marginal farmers disposes off their land to meet the expenses for marriage and other social functions. Many marginal farmers enter the labour market due to indebtedness. The circle goes on increasing and they find themselves caught in the vicious circle of poverty.