Lok Sabha Question No. 86 (UNSTARRED), answered on 2018-02-02
Subject: Farm Loan Waiver Scheme
Ministry: FINANCE
Asked by: RAJENDRA AGRAWAL, SADASHIV KISAN LOKHANDE

## Government of India Ministry of Finance Department of Financial Services

## LOK SABHA

Unstarred Question No. 86

To be answered Friday, February 02, 2018/Magha 13, 1939 (Saka)

## Farm Loan Waiver Scheme

86. SHRI RAJENDRA AGRAWAL:

Will the Minister of FINANCE be pleased to state:

- (a) whether the Government has any proposal/scheme to waive agricultural loan obtained from banks by farmers, if so, the details thereof and if not, the reasons therefor;
- (b)  the  details  of  the  amount  of  outstanding  agricultural  loans  provided  by  banks  during  the  last  three  years,  bank, State/UT-wise;
- (c)  whether  the  Government  has  set  up  any  monitoring  agency  at  the  Central  level  or  issued  directives  to  State Governments  with  regard  to  the  prevention  of  irregularities  and  lapses  in  the  implementation  of  farm  loan  waiver schemes; and
- (d) if so, the details thereof, if not, the reasons therefor?

## Answer

The Minister of State in the Ministry of Finance (Shri Shiv Pratap Shukla )

- (a) and (b): There is no proposal under consideration of the Union Government to waive off loans of farmers. However, to reduce the debt burden of farmers, the following major initiatives have been taken:
-  with  a  view  to  ensure  availability  of  agriculture  credit  at  a  reduced  interest  rate  of  7%  p.a.  to  the  farmers,  the Government  of  India  in  the  Department  of  Agriculture  Cooperation  and  Farmers'  Welfare  implements  an  interest subvention scheme for short term crop loans up to Rs. 3.00 lakh. The scheme provides interest subvention of 2% per annum to Banks on use of their own resources.  Besides, additional 3% incentive is given to the farmers for prompt repayment of the loan, thereby reducing the effective rate of interest to 4%.
-  Reserve Bank of India has issued  directions for Relief Measures to be provided by respective lending institutions in areas affected by natural calamities which, inter alia, include, restructuring/rescheduling of existing crop loans and term loans,  extending  fresh  loans,  relaxed  security  and  margin  norms,  moratorium,  etc.  These  directions  have  been  so designed that the moment calamity is declared by the concerned District Authorities they are automatically set in motion without any intervention, thus saving precious time. The benchmark for initiating relief measures by banks has also been reduced to 33% crop loss in line with the National Disaster Management Framework.
-  Pradhan Mantri Fasal Bima Yojana (PMFBY) provides a comprehensive insurance cover against failure of insured crops  due  to  non-preventable  natural  risks,  thus  providing  financial  support  to  farmers  suffering  crop  loss/  damage arising  out  of  unforeseen  events;  stabilizing  the  income  of  farmers  to  ensure  their  continuance  in  farming;  and encouraging them to adopt innovative and modern agricultural practices. For development of agriculture and welfare of farmers  of  the  country,  the  Government  in  DAC&FW,  is  implementing  various  Central  Sector/  Centrally  Sponsored Schemes, which include:
- (i) Rashtriya Krishi Vikas Yojana (RKVY)
- (ii) National Food Security Mission (NFSM)
- (iii) National Agriculture Market (e-NAM)
- (iv) National Mission For Sustainable Agriculture (NMSA)

The details of  the State wise and agency-wise agriculture loan outstanding during last 03 years as reported by National Bank for Agriculture and Rural Development (NABARD) is given in Annexure.

- (c) and (d): As informed by NABARD, during the years 2016 and 2017 some State Governments have announced their own schemes, inter-alia, of waiver of loan of farmers. The Union Government has not issued any directives to State Governments in this regard.

****

SHRI SADASHIV LOKHANDE:

## Annexure to Lok Sabha USQ No. 86 for 02.02.2018

## State-wise Agriculture Loan Outstanding During Last 3 Years ( 21015-16, 2016-17 & 2017-18)

|              |                            | As on 31.03.2015   | As on 31.03.2015   | As on 31.03.2015   | As on 31.03.2015   | As on 31.03.2016   | As on 31.03.2016   | As on 31.03.2016   | As on 31.03.2016   | As on 31.03.2017   | As on 31.03.2017   | As on 31.03.2017   | As on 31.03.2017   |
|--------------|----------------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|--------------------|
| S.No.        | State/UT                   | Cooperative Banks  | RRBs               | Commercial Banks   | All Agencies       | Cooperati ve Banks | RRBs               | Commerci al Banks  | All Agencies       | Cooperative Banks  | RRBs               | Commercial Banks   | All Agencies       |
| 1            | DELHI                      | 5.29               | -                  | 13,811.14          | 13,816.42          | 9.03               | -                  | 1,607.95           | 1,616.97           | 11.33              | -                  | 13,126.28          | 13,137.61          |
| 2            | HARYANA                    | 9,393.44           | 2,754.29           | 33,165.96          | 45,313.69          | 10,211.58          | 4,671.64           | 38,433.66          | 53,316.89          | 10,505.79          | 4,464.41           | 41,503.37          | 56,473.57          |
| 3            | HIMACHAL PRADESH           | 1,340.00           | 413.24             | 5,089.42           | 6,842.66           | 1,564.59           | 480.42             | 4,856.59           | 6,901.61           | 1,783.59           | 614.53             | 4,938.49           | 7,336.61           |
| 4            | JAMMU & KASHMIR            | 50.66              | 566.59             | 644.02             | 1,261.27           | 180.60             | 664.44             | 5,627.63           | 6,472.68           | 52.90              | 647.52             | 5,922.44           | 6,622.86           |
| 5            | PUNJAB                     | 11,652.74          | 2,977.61           | 54,819.40          | 69,449.75          | 11,342.98          | 3,974.44           | 64,563.85          | 79,881.28          | 11,365.20          | 4,541.06           | 67,863.65          | 83,769.91          |
| 6            | RAJASTHAN                  | 14,857.33          | 9,118.31           | 48,720.93          | 72,696.57          | 11,726.73          | 10,458.67          | 56,989.92          | 79,175.32          | 11,538.09          | 12,806.32          | 67,087.43          | 91,431.84          |
| 7            | CHANDIGARH UT              | -                  | -                  | 1,676.66           | 1,676.66           | -                  | -                  | 2,409.70           | 2,409.70           | 0.15               | -                  | 2,493.51           | 2,493.66           |
|              | Northern Region Total      | 37,299.46          | 15,830.04          | 1,57,927.51        | 2,11,057.02        | 35,035.52          | 20,249.61          | 1,74,489. 31       | 2,29,774. 44       | 35,257.06          | 23,073.84          | 2,02,935.17        | 2,61,266.07        |
| 8            | ARUNACHAL PRADESH          | 4.40               | 30.90              | 126.40             | 161.70             | 23.38              | 18.59              | 133.31             | 175.28             | 85.46              | 19.27              | 160.87             | 265.60             |
| 9            | ASSAM                      | 69.04              | 1,617.46           | 4,677.63           | 6,364.13           | 64.61              | 1,786.56           | 6,579.61           | 8,430.78           | 61.66              | 1,914.24           | 8,884.75           | 10,860.65          |
| 10           | MANIPUR                    | 0.14               | 24.03              | 235.50             | 259.67             | 124.98             | 28.42              | 170.70             | 324.10             | 0.24               | 38.75              | 393.05             | 432.04             |
| 11           | MEGHALAYA                  | 97.64              | 93.59              | 376.72             | 567.95             | 126.87             | 105.56             | 439.43             | 671.85             | 144.39             | 112.02             | 574.51             | 830.92             |
| 12           | MIZORAM                    | 114.62             | 102.12             | 119.83             | 336.57             | 119.13             | 129.45             | 46.41              | 294.99             | 68.05              | 120.67             | 136.99             | 325.71             |
| 13           | NAGALAND                   | 44.53              | 3.06               | 234.64             | 282.24             | 109.17             | 2.41               | 274.14             | 385.71             | 117.06             | 2.12               | 268.18             | 387.36             |
| 14           | SIKKIM                     | 12.55              | -                  | 104.53             | 117.08             | 17.31              | -                  | 147.56             | 164.87             | 22.56              | -                  | 170.44             | 193.00             |
| 15           | TRIPURA                    | 508.33             | 364.77             | 397.28             | 1,270.39           | 672.36             | 397.77             | 330.70             | 1,400.83           | 681.49             | 572.47             | 1,102.67           | 2,356.64           |
|              | North Eastern Region Total | 851.26             | 2,235.93           | 6,272.54           | 9,359.72           | 1,257.79           | 2,468.75           | 8,121.87           | 11,848.41          | 1,180.92           | 2,779.54           | 11,691.46          | 15,651.92          |
| 16 A&NISLAND | 16 A&NISLAND               |                    |                    |                    |                    |                    |                    |                    |                    |                    |                    |                    | 147.98             |

(Amt. in Rs. Crore)

|    |                      | 36.15     | -         | 93.77       | 129.92      | 164.30    | -         | 138.65       | 302.96       | 54.54     | -         | 93.44       |             |
|----|----------------------|-----------|-----------|-------------|-------------|-----------|-----------|--------------|--------------|-----------|-----------|-------------|-------------|
| 17 | BIHAR                | 13,452.02 | 7,011.14  | 21,020.35   | 41,483.51   | 756.16    | 8,855.89  | 21,758.13    | 31,370.17    | 1,142.82  | 10,938.49 | 22,812.72   | 34,894.03   |
| 18 | JHARKHAND            | 43.00     | 953.62    | 4,961.16    | 5,957.77    | 39.40     | 1,159.67  | 6,130.45     | 7,329.52     | 41.17     | 1,325.18  | 5,940.23    | 7,306.58    |
| 19 | ODISHA               | 7,070.96  | 3,195.74  | 10,131.54   | 20,398.24   | 8,928.66  | 3,550.89  | 11,323.44    | 23,802.99    | 10,614.06 | 3,610.50  | 12,628.67   | 26,853.23   |
| 20 | WEST BENGAL          | 4,071.43  | 3,106.40  | 24,125.37   | 31,303.20   | 4,035.17  | 3,308.19  | 33,547.99    | 40,891.36    | 4,251.28  | 3,091.44  | 31,119.90   | 38,462.61   |
|    | Eastern Region Total | 24,673.57 | 14,266.90 | 60,332.17   | 99,272.64   | 13,923.69 | 16,874.64 | 72,898.67    | 1,03,697. 00 | 16,103.87 | 18,965.61 | 72,594.96   | 1,07,664.43 |
| 21 | CHHATTISGARH         | 2,869.60  | 1,115.42  | 6,371.70    | 10,356.72   | 3,572.32  | 1,187.64  | 6,595.41     | 11,355.38    | 2,145.56  | 1,162.56  | 9,220.75    | 12,528.87   |
| 22 | MADHYA PRADESH       | 12,040.75 | 6,537.53  | 44,838.11   | 63,416.38   | 10,621.75 | 6,788.44  | 49,179.94    | 66,590.13    | 12,356.61 | 7,112.02  | 54,245.00   | 73,713.63   |
| 23 | UTTARAKHAND          | 926.33    | 440.50    | 6,337.59    | 7,704.42    | 1,072.11  | 448.13    | 7,312.13     | 8,832.37     | 811.21    | 429.52    | 7,980.18    | 9,220.91    |
| 24 | UTTAR PRADESH        | 9,667.22  | 25,001.17 | 82,186.09   | 1,16,854.48 | 10,487.75 | 28,974.36 | 85,338.51    | 1,24,800.6 2 | 80,184.26 | 32,381.85 | 92,734.89   | 2,05,301.00 |
|    | Central Region Total | 25,503.90 | 33,094.62 | 1,39,733.49 | 1,98,332.00 | 25,753.93 | 37,398.58 | 1,48,425. 98 | 2,11,578. 50 | 95,497.64 | 41,085.94 | 1,64,180.81 | 3,00,764.40 |
| 25 | GOA                  | 88.91     | -         | 892.88      | 981.79      | 70.75     | -         | 832.89       | 903.63       | 73.57     | -         | 1,462.41    | 1,535.99    |
| 26 | GUJARAT              | 11,373.20 | 2,722.80  | 38,896.93   | 52,992.92   | 10,905.35 | 3,409.55  | 47,311.82    | 61,626.72    | 11,807.61 | 4,124.69  | 54,643.12   | 70,575.42   |
| 27 | MAHARASHTRA          | 23,091.07 | 3,461.32  | 1,62,564.97 | 1,89,117.36 | 24,725.40 | 4,149.23  | 1,34,572.0 1 | 1,63,446.6 4 | 27,625.80 | 4,925.09  | 1,36,598.42 | 1,69,149.31 |
| 28 | D &NHAVELI UT        | -         | -         | 52.18       | 52.18       | -         | -         | 61.04        | 61.04        | -         | -         | 58.35       | 58.35       |
| 29 | DAMAN & DIU UT       | -         | -         | 33.91       | 33.91       | -         | -         | 20.10        | 20.10        | -         | -         | 20.08       | 20.08       |
|    | Western Region Total | 34,553.18 | 6,184.11  | 2,02,440.87 | 2,43,178.17 | 35,701.50 | 7,558.79  | 1,82,797. 85 | 2,26,058. 14 | 39,506.99 | 9,049.77  | 1,92,782.37 | 2,41,339.14 |
| 30 | ANDHRA PRADESH       | 6,065.72  | 11,200.62 | 80,069.44   | 97,335.78   | 7,144.96  | 13,330.49 | 81,385.03    | 1,01,860.4 8 | 8,063.88  | 16,073.49 | 87,185.24   | 1,11,322.61 |
| 31 | TELANGANA            | 3,189.11  | 5,648.07  | 32,766.23   | 41,603.41   | 3,713.91  | 7,224.80  | 39,207.90    | 50,146.61    | 4,048.55  | 8,394.49  | 49,814.49   | 62,257.52   |
| 32 | KARNATAKA            | 11,336.29 | 13,486.46 | 67,521.98   | 92,344.73   | 12,564.34 | 16,129.67 | 98,684.66    | 1,27,378.6 7 | 14,636.50 | 19,038.88 | 88,465.63   | 1,22,141.01 |

| 33   | KERALA                | 4,745.26    | 6,102.41    | 53,024.34   | 63,872.02    | 14,098.29    | 7,002.84     | 39,502.51    | 60,603.64     | 7,162.58    | 8,402.19    | 53,647.66    | 69,212.43    |
|------|-----------------------|-------------|-------------|-------------|--------------|--------------|--------------|--------------|---------------|-------------|-------------|--------------|--------------|
| 34   | PUDUCHERRY            | 14.07       | 264.85      | 1,425.38    | 1,704.31     | 14.21        | 320.06       | 1,567.73     | 1,902.01      | 3.33        | 392.04      | 1,846.83     | 2,242.21     |
| 35   | TAMILNADU             | 6,054.80    | 4,289.55    | 1,15,694.43 | 1,26,038.78  | 6,912.83     | 4,842.83     | 1,22,502.1 5 | 1,34,257.8 0  | 5,236.46    | 6,160.33    | 1,31,534.62  | 1,42,931.42  |
| 36   | LAKSHADWEEP UT        | -           | -           | 1,727.12    | 1,727.12     | -            | -            | 38.76        | 38.76         | -           | -           | 6.33         | 6.33         |
|      | Southern Region Total | 31,405.26   | 40,991.95   | 3,52,228.93 | 4,24,626.14  | 44,448.54    | 48,850.69    | 3,82,888. 74 | 4,76,187. 96  | 39,151.29   | 58,461.43   | 4,12,500.81  | 5,10,113.53  |
|      | GRAND TOTAL           | 1,54,286.62 | 1,12,603.55 | 9,18,935.52 | 11,85,825.69 | 1,56,120.9 7 | 1,33,401. 06 | 9,69,622. 42 | 12,59,144 .45 | 2,26,697.77 | 1,53,416.12 | 10,56,685.59 | 14,36,799.48 |

Source:

NABARD