India, Oct. 27 -- Farmer Ramesh Valvi, 34, hoped to buy a Rs.4.5 lakh tractor for his three-hectare farm in Maharashtra's Mandvi village. He saved Rs.60,000 and hoped to earn another Rs.50,000 for the Rs.2 lakh down payment. Valvi planned to arrange the remaining amount from his brother, a construction contractor.

The plan is now on hold as Valvi's maize and tur crops failed after rains stopped. Rs.40,000 he invested in his land is also lost. Valvi expects to only break even, leaving little room for the tractor purchase. There is not enough water even to drink, and he sees little chance of sowing a rabi crop in the winter, unless water becomes available.

With no income expected from another harvest, he expects to use his savings to feed...