Lok Sabha Question No. 820 (UNSTARRED), answered on 2017-02-07
Subject: Debt Ridden Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: YOGI ADITYANATH, VEENA DEVI, MAULANA BADRUDDIN AJMAL

O.I.H

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.820

TO BE ANSWERED ON THE 7 TH   FEBRUARY, 2017

## DEBT RIDDEN FARMERS

820. SHRI YOGI ADITYA NATH: SHRIMATI VEENA DEVI: SHRI BADRUDDIN AJMAL:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) the number of debt ridden farmers in the country, State/UT-wise;
- (b) whether the Government proposes to constitute a Farmers' Debt Relief Commission and if so, the details thereof and if not, the reasons therefor;
- (c) whether the farmers especially cotton growers in the country are committing suicide due to pressure of loans taken from banks; and
- (d) if  so,  the  details  thereof  and  the  remedial  measures  taken  by  the  Government  in  this regard?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  PARSHOTTAM RUPALA)

- (a): The number of debt ridden farmer households in the country, State/UT-wise, as per the Situation  Assessment  Survey  (SAS)-2013  in  the  report  (2014)  of  National  Sample  Survey Organization (NSSO), available for 18 major States, with All-India average, are furnished below:

| State          |   Estimated Number of Agriculture households having outstanding loan |
|----------------|----------------------------------------------------------------------|
| Andhra Pradesh |                                                              3342100 |
| Assam          |                                                               599500 |
| Bihar          |                                                              3015600 |
| Chhattisgarh   |                                                               953800 |
| Gujarat        |                                                              1674300 |
| Haryana        |                                                               664500 |
| Jharkhand      |                                                               646400 |
| Karnataka      |                                                              3277500 |
| Kerala         |                                                              1090800 |

| Madhya Pradesh   |   2741400 |
|------------------|-----------|
| Maharashtra      |   4067200 |
| Odisha           |   2583000 |
| Punjab           |    749900 |
| Rajasthan        |   4005500 |
| Tamil Nadu       |   2678000 |
| Telangana        |   2262800 |
| Uttar Pradesh    |   7908100 |
| West Bengal      |   3278700 |
| All India*       |  46848100 |

*Based on all States and Union Territories, including States and Union Territories not shown in this Statement

Source: NSSO (2014), Government of India

(b):      No, Madam.

(c) & (d):    As per the reports 'Accidental Deaths and Suicides in India (ADSI)' for the years 2014 and 2015 published by the National Crime Records Bureau of Ministry of Home Affairs, the reasons for suicide by farmers are manifold, which inter-alia, include crop failure, drought, socio-economic  and  personal  reasons  and  indebtedness  to  both  institutional  and  noninstitutional sources of credit.

Farmers including cotton growers are indebted to both institutional and non-institutional sources of credit.    However,  borrowing from non-institutional sources is the major reason for debt related farmers distress which is one of the reported reasons for farmers' suicide in the country.

Government has taken several remedial measures to reduce dependence of farmers on non-institutional  sources  of  lending.    The  measures  include  fixation  of  annual  targets  for improving agricultural credit flow which has constantly increased in the past.   In 2017-18, the target is fixed at Rs.10 lakh crore as against Rs.9 lakh crore in 2016-17; provision of crop loans upto Rs.3.00 lakh @4% per annum to such farmers who repay their loan as per the repayment schedule fixed by the  banks; extension   of benefit of interest subvention scheme to small & marginal farmers having Kisan Credit Card for a further period upto six months for storing their produce in warehouses against negotiable warehouse receipts; collateral free loan upto Rs.1.00 lakh; scheme for financing of Joint Liability Group (JLGs) etc.

Further,  by  way  of  relief  measures  for  natural  calamities,  Reserve  Bank  of  India  has issued guidelines in their circular dated 21.08.2015.  Accordingly, banks have been advised to allow maximum period of repayment of upto 2 years (including the moratorium period of 1 year) if  the  crop  loss  is  between  33%  and  50%.    If  the  crop  loss  is  50%  or  more,  the  restructured period  for repayment is extended to a maximum of 5 years (including the moratorium period of 1 year).

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