The agricultural sector continues to play a crucial role in the Indian economy in terms of income generation and employment, yet it faces persistent structural challenges that have intensified agrarian distress in recent decades. Against this backdrop, the present study examines the nature and dynamics of indebtedness among victim farm households in Mandya district of Karnataka, a region significantly affected by farmer suicides despite its relatively advanced irrigation infrastructure. Drawing on micro-level evidence, the study explores the patterns, sources, and determinants of farm indebtedness and its linkage with the broader agrarian crisis. A substantial dependence on non-institutional sources of finance, often at high interest rates, exacerbates the debt burden and increases financial vulnerability among victim farmers. In several cases, mounting debt and the inability to repay loans contribute to severe distress, culminating in farmer suicides and leaving behind economically and socially vulnerable households. The study concludes by stressing the need for comprehensive and targeted policy interventions aimed at strengthening institutional credit systems, ensuring remunerative prices, promoting sustainable agricultural practices, and enhancing social security measures. By providing micro-level insights, the paper contributes to a deeper understanding of agrarian distress and offers policy-relevant suggestions to address the growing crisis of farm indebtedness in regions like Mandya.