Lok Sabha Question No. 142 (STARRED), answered on 2018-07-27
Subject: Farm Loan Waiver Scheme
Ministry: FINANCE
Asked by: LAKHAN LAL SAHU

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

## Starred Question No. †*142

To be answered Friday, July 27, 2018/Shravana 5, 1940 (Saka)

## Farm Loan Waiver Scheme

†*142. SHRI LAKHAN LAL SAHU:

Will the Minister of FINANCE be pleased to state:

- (a)  the  present  status  of  giving  agriculture  loans  to  the  farmers  in  the  country, particularly in the drought prone areas;
- (b) whether the farmers from drought prone areas of the country have been benefited through waiving off their loans under the loan waiver scheme; and
- (c) if so, the details thereof, State/ UT-wise and if not, the reasons therefor?

Answer The Minister of Finance (Shri Piyush Goyal)

- (a) to (c) : A Statement is laid on the Table of the House.

Statement referred to in reply to parts (a) to (c) of Lok Sabha Starred Question No. *142 to be answered on 27.07.2018 regarding Farm Loan Waiver Scheme by SHRI LAKHAN LAL SAHU.

- (a): The details of the State wise agriculture loan disbursement including the drought prone areas during last 02 years as reported by National Bank for Agriculture and Rural Development (NABARD) is given in Annexure. Agriculture credit target for year 2018-19 has been set at Rs. 11,00,000 crore.
- (b)  &  (c):  As  informed  by  NABARD,  since  2014,  the  State  Governments  of  Tamil Nadu, Maharashtra, Karnataka, Andhra Pradesh, Uttar Pradesh, Jammu & Kashmir, Punjab, Telengana and Rajasthan have announced their own schemes, inter alia, for loan waiver of farmers. The Central Government has, inter alia, taken the following major  initiatives  to  reduce  the  debt  burden  of  farmers  and  for  development  of agriculture and welfare of farmers:
-  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  (DAC&FW)  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%.   Further, in order to discourage distress sale by farmers and to encourage them to store their produce in warehouses against  warehouse  receipts,  the  benefit  of  interest  subvention  scheme  has  been extended to small and marginal farmers having Kisan Credit Card for a further period of up to six months post-harvest on the same rate as available to crop loan against negotiable warehouse receipt for keeping their produce in Warehouses accredited by Warehousing Development Regulatory Authority (WDRA).
-  Under the aforesaid interest subvention scheme, to provide relief to farmers affected by natural calamities, the interest subvention on crop loan continues to be available  to  banks  for  the  first  year  on  the  restructured  amount.  Such  restructured loans may attract normal rate of interest from the second year onwards as per policy laid down by the Reserve Bank of India (RBI).
-  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. In addition, Loan to distressed  farmers  indebted  to  noninstitutional  lenders  is  an  eligible  category  of  farm  credit  under  the  Priority  Sector Lending (PSL) as per directions issued by RBI.
-  Pradhan Mantri Fasal BimaYojana (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) RashtriyaKrishiVikasYojana (RKVY)
- (ii) National Food Security Mission (NFSM)
- (iii) National Agriculture Market (e-NAM)
- (iv) National Mission For Sustainable Agriculture (NMSA)

## Annexure to in reply to Lok Sabha SQ 142 for 27.07.2018

## Agriculture Credit Disbursement Data

|    |                   | 2016-17            | 2016-17            | 2016-17            | 2017-18(Provisional)   | 2017-18(Provisional)   |                 |
|----|-------------------|--------------------|--------------------|--------------------|------------------------|------------------------|-----------------|
|    | State/UT          | Total Agri. Credit | Total Agri. Credit | Total Agri. Credit | Total Agri. Credit     | Total Agri. Credit     |                 |
|    |                   | Crop Loan          | Term Loan          | Total Loan         | Crop Loan              | Term Loan              | Total Loan      |
| 1  | DELHI             | 8,37,769.83        | 11,56,395.14       | 19,94,164.97       | 6,53,938.57            | 13,05,860.60           | 19,59,799.17    |
| 2  | HARYANA           | 36,27,486.50       | 13,20,620.63       | 49,48,107.13       | 38,84,376.61           | 16,66,695.25           | 55,51,071.86    |
| 3  | HIMACHAL PRADESH  | 4,41,953.30        | 1,69,661.26        | 6,11,614.56        | 10,90,641.71           | 3,43,277.77            | 14,33,919.48    |
| 4  | JAMMU &KASHMIR    | 6,70,230.34        | 59,443.72          | 7,29,674.06        | 9,24,862.13            | 2,05,310.85            | 11,30,172.98    |
| 5  | PUNJAB            | 58,03,430.42       | 16,26,716.41       | 74,30,146.82       | 52,98,693.13           | 20,21,457.83           | 73,20,150.96    |
| 6  | RAJASTHAN         | 57,87,553.14       | 16,42,832.47       | 74,30,385.60       | 63,59,453.89           | 17,39,522.94           | 80,98,976.83    |
| 7  | CHANDIGARH UT     | 75,278.84          | 65,315.76          | 1,40,594.60        | 1,29,425.74            | 1,06,392.70            | 2,35,818.44     |
| 8  | ARUNACHAL PRADESH | 2,777.29           | 10,481.37          | 13,258.66          | 2,672.31               | 5,669.78               | 8,342.09        |
| 9  | ASSAM             | 1,56,819.66        | 4,53,387.75        | 6,10,207.41        | 1,50,700.21            | 5,24,913.63            | 6,75,613.84     |
| 10 | MANIPUR           | 5,899.36           | 19,212.82          | 25,112.17          | 3,754.31               | 23,525.73              | 27,280.04       |
| 11 | MEGHALAYA         | 28,170.23          | 8,660.83           | 36,831.05          | 28,662.96              | 6,410.66               | 35,073.62       |
| 12 | MIZORAM           | 3,035.56           | 8,400.07           | 11,435.63          | 2,324.91               | 15,168.70              | 17,493.61       |
| 13 | NAGALAND          | 7,290.05           | 5,649.16           | 12,939.21          | 8,263.27               | 12,238.44              | 20,501.71       |
| 14 | SIKKIM            | 10,797.21          | 5,372.44           | 16,169.65          | 6,575.12               | 5,924.16               | 12,499.28       |
| 15 | TRIPURA           | 33,507.78          | 1,17,804.75        | 1,51,312.53        | 70,474.85              | 1,62,097.76            | 2,32,572.61     |
| 16 | A &NISLAND        | 3,596.87           | 9,901.33           | 13,498.20          | 4,205.19               | 7,818.32               | 12,023.51       |
| 17 | BIHAR             | 14,21,862.40       | 11,96,595.97       | 26,18,458.38       | 14,43,529.59           | 12,55,143.78           | 26,98,673.37    |
| 18 | JHARKHAND         | 2,82,139.80        | 1,55,859.39        | 4,37,999.18        | 2,10,042.59            | 1,68,050.80            | 3,78,093.39     |
| 19 | ODISHA            | 15,81,164.22       | 5,45,332.24        | 21,26,496.46       | 15,65,007.16           | 7,12,714.29            | 22,77,721.45    |
| 20 | WEST BENGAL       | 12,94,390.77       | 21,95,181.55       | 34,89,572.32       | 14,84,862.62           | 26,07,160.59           | 40,92,023.21    |
| 21 | CHHATTISGARH      | 9,36,350.26        | 2,87,391.88        | 12,23,742.13       | 10,85,310.57           | 4,34,612.19            | 15,19,922.76    |
| 22 | MADHYA PRADESH    | 42,90,984.78       | 13,23,921.63       | 56,14,906.41       | 45,98,690.12           | 14,44,498.35           | 60,43,188.47    |
| 23 | UTTARAKHAND       | 3,67,117.61        | 2,83,425.81        | 6,50,543.42        | 4,69,270.49            | 3,18,856.75            | 7,88,127.24     |
| 24 | UTTAR PRADESH     | 59,59,266.02       | 21,99,135.39       | 81,58,401.41       | 62,51,162.20           | 22,62,452.54           | 85,13,614.74    |
| 25 | GOA               | 21,884.90          | 79,242.76          | 1,01,127.66        | 33,929.15              | 90,621.49              | 1,24,550.64     |
| 26 | GUJARAT           | 33,86,445.60       | 20,41,224.15       | 54,27,669.75       | 39,67,145.51           | 23,01,147.94           | 62,68,293.45    |
| 27 | MAHARASHTRA       | 41,33,883.12       | 40,04,500.51       | 81,38,383.63       | 26,97,318.50           | 49,74,947.60           | 76,72,266.10    |
| 28 | D &NHAVELI UT     | 2,713.05           | 5,304.05           | 8,017.10           | 1,304.20               | 5,280.02               | 6,584.22        |
| 29 | DAMAN &DIU UT     | 1,278.98           | 2,179.35           | 3,458.32           | 1,215.66               | 2,110.30               | 3,325.96        |
| 30 | ANDHRA PRADESH    | 61,39,148.29       | 31,47,713.85       | 92,86,862.14       | 79,70,017.76           | 33,72,729.98           | 1,13,42,747.74  |
| 31 | TELANGANA         | 47,28,922.01       | 20,59,613.42       | 67,88,535.43       | 44,95,791.77           | 13,94,959.64           | 58,90,751.41    |
| 32 | KARNATAKA         | 41,67,717.58       | 36,40,554.54       | 78,08,272.12       | 44,15,231.04           | 35,23,145.98           | 79,38,377.02    |
| 33 | KERALA            | 44,41,564.73       | 23,32,311.72       | 67,73,876.45       | 54,75,965.97           | 29,41,741.72           | 84,17,707.69    |
| 34 | PUDUCHERRY        | 3,33,856.30        | 1,95,152.12        | 5,29,008.42        | 1,84,606.14            | 76,192.52              | 2,60,798.66     |
| 35 | TAMILNADU         | 79,59,389.93       | 52,55,066.75       | 1,32,14,456.68     | 1,05,27,636.06         | 53,14,064.40           | 1,58,41,700.46  |
| 36 | LAKSHADWEEP UT    |                    | 272.37             | 327.30             |                        | 454.92                 | 505.70          |
|    |                   | 54.93              |                    |                    | 50.78                  |                        |                 |
|    | TOTAL             | 6,89,45,731.64     | 3,76,29,835.36     | 10,65,75,567.01    | 7,54,97,112.79         | 4,13,53,170.92         | 11,68,50,283.71 |

Source: NABARD