Lok Sabha Question No. 277 (UNSTARRED), answered on 2020-09-15
Subject: Debt Burden of Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Rebati Tripura, Gajanan Chandrakant Kirtikar

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

## LOK  SABHA UNSTARRED QUESTION NO. 277

TO BE ANSWERED ON THE 15 TH  SEPTEMBER, 2020

## DEBT BURDEN OF FARMERS

277.   SHRI REBATI TRIPURA: SHRI GAJANAN KIRTIKAR:

## Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी

be pleased to state;

- (a): the details of the indebtedness of farmers household in the country during each of the last three years and the current year, State/UT wise;
- (b): whether  the  Government  has  conducted  any  survey  regarding  indebtedness  of farmer household and if so, the findings of the survey thereof;
- (c): whether per farmer debt burden is higher than the average annual per capita in the country, if so, the details thereof alongwith the reasons for indebtedness of farmers;
- (d): the details of various efforts made by the Government to reduce the burden of debt along with the outcome thereof; and
- (e): the  steps  taken/being  taken  by  the  Government  to  formulate  farm  loan  waiver scheme for farmers to reduce the debt burden of farmers?

## ANSWER

## MINISTER OF AGRICULTURE AND FARMERS WELFARE

## कृ ष एवं कसान कयाण मंी (SHRI NARENDRA SINGH TOMAR)

- (a) to (c): The  Government  had  conducted  a  Survey  on  'Household  Indebtedness  in India 2013' in NSSO 70th Round, Report No. 577. The key findings are at Annexure-I . As per  the  above  survey  report,  the  average  income  is  Rs.77,112  against  a  debt  of Rs. 47,000.The state-wise debt per agricultural households is at Annexure-II .
- (d): The  Government  of  India,  has  inter-alia,  taken  the  following  major  initiatives  to reduce  the  debt  burden  of  farmers  and  thus  freeing  them  from  the  clutches  of  money lenders.  These  schemes/initiatives  include  KCC  Saturation  drive  to  ensure  concessional institutional credit to all eligible farmers in the country, income support of Rs.6000 per year to farm families in 3 equal instalment through Pradhan Mantri Kisan SAmman Nidhi (PMKISAN), Pradhan Mantri Fasal Bima Yojana (PMFBY), formation of Joint Liabilities Groups (JLG's),  Rashtriya  Krishi  Vikas  Yojana  (RKVY),  National  Food  Security  Mission  (NFSM), National Agriculture Market (e-NAM), National Mission For Sustainable Agriculture (NMSA), Pradhan Mantri Kisan Maan-Dhan Yojana (PM-KMY) etc.
- (e): The Government of India had implemented Agricultural Debt Waiver and Debt Relief Scheme  (ADWDRS)  in  2008-09.  After  the  closure  of  ADWDR,  2008,  no  other  waiver scheme has been implemented by the Union Government.

Key finding of the survey on 'Household Indebtedness in India 2013' in NSSO 70th Round, Report No. 577 on Indebtedness and loan by farmers:

## Indebtedness of agricultural households

Information on the amount of loan outstanding on the date of survey (i.e. the day on which  data  was  collected  from  the  household)  was  collected  from  each  surveyed agricultural household. Along with this, information on source and nature of the loan was also  collected. The  information  included  all kinds  of outstanding loans irrespective  of  the purpose  for  which  loans  were  taken.  The  table  below  at Appendix shows  the  average amount of outstanding loan per agricultural household by size class of land possessed for major States. The Statement reveals that about 52 percent of the agricultural households in the country were estimated to be indebted. The average amount of outstanding loan per agricultural household was Rs.47000/- (approx.).

Among  the  major  States,  Andhra  Pradesh  had  the  highest  share  of  indebted agricultural households in the country (92.9 percent) followed by Telangana (89.1 percent) and  Tamil  Nadu  (82.5  percent).  Assam  (17.5  percent),  Jharkhand  (28.9  percent),  and Chhattisgarh (37.2 percent) were  the  major States with lowest share  of indebted agricultural  households. The average amount of outstanding loan was highest for Kerala (Rs.213600/-) followed by Andhra Pradesh (Rs.123400) and Punjab (Rs.119500). Assam (Rs.3400), Jharkhand (Rs.5700) and Chhattisgarh (Rs.10200) were the States with lowest amount of average outstanding loan.

## Appendix Average amount of outstanding loan (Rs. 00) per agricultural household by size class of land possessed for major States.

| State          | Average amount of outstanding loan (Rs. 00) per agricultural household belonging to size class of land possessed (ha)   | Average amount of outstanding loan (Rs. 00) per agricultural household belonging to size class of land possessed (ha)   | Average amount of outstanding loan (Rs. 00) per agricultural household belonging to size class of land possessed (ha)   | Average amount of outstanding loan (Rs. 00) per agricultural household belonging to size class of land possessed (ha)   | Average amount of outstanding loan (Rs. 00) per agricultural household belonging to size class of land possessed (ha)   | Average amount of outstanding loan (Rs. 00) per agricultural household belonging to size class of land possessed (ha)   | Average amount of outstanding loan (Rs. 00) per agricultural household belonging to size class of land possessed (ha)   | Average amount of outstanding loan (Rs. 00) per agricultural household belonging to size class of land possessed (ha)   | Esd. No. agri. Households having outstanding loan (00)   | Proportion of agricultural   |
|----------------|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------|----------------------------------------------------------|------------------------------|
| State          | <0.01                                                                                                                   | 0.01 - 0.40                                                                                                             | 0.41 - 1.00                                                                                                             | 1.01 - 2.00                                                                                                             | 2.01 - 4.00                                                                                                             | 4.01 - 10.00                                                                                                            | 10.00+                                                                                                                  | All classes                                                                                                             | Esd. No. agri. Households having outstanding loan (00)   | indebted household (0.0%)    |
| 1              | 2                                                                                                                       | 3                                                                                                                       | 4                                                                                                                       | 5                                                                                                                       | 6                                                                                                                       | 7                                                                                                                       | 8                                                                                                                       | 9                                                                                                                       | 10                                                       | 11                           |
| Andhra Pradesh | 2409                                                                                                                    | 739                                                                                                                     | 893                                                                                                                     | 1049                                                                                                                    | 1623                                                                                                                    | 3500                                                                                                                    | 2494                                                                                                                    | 1234                                                                                                                    | 33421                                                    | 92.9                         |
| Assam          | 4                                                                                                                       | 8                                                                                                                       | 24                                                                                                                      | 67                                                                                                                      | 71                                                                                                                      | 173                                                                                                                     | 0                                                                                                                       | 34                                                                                                                      | 5995                                                     | 17.5                         |
| Bihar          | 73                                                                                                                      | 138                                                                                                                     | 132                                                                                                                     | 341                                                                                                                     | 279                                                                                                                     | 424                                                                                                                     | 1494                                                                                                                    | 163                                                                                                                     | 30156                                                    | 42.5                         |
| Chhattisgarh   | 0                                                                                                                       | 48                                                                                                                      | 93                                                                                                                      | 79                                                                                                                      | 202                                                                                                                     | 239                                                                                                                     | 0                                                                                                                       | 102                                                                                                                     | 9538                                                     | 37.2                         |
| Gujarat        | 69                                                                                                                      | 120                                                                                                                     | 247                                                                                                                     | 311                                                                                                                     | 826                                                                                                                     | 1624                                                                                                                    | 1148                                                                                                                    | 381                                                                                                                     | 16743                                                    | 42.6                         |
| Haryana        | 95                                                                                                                      | 192                                                                                                                     | 737                                                                                                                     | 900                                                                                                                     | 1573                                                                                                                    | 1162                                                                                                                    | 4681                                                                                                                    | 790                                                                                                                     | 6645                                                     | 42.3                         |
| Jharkhand      | 0                                                                                                                       | 56                                                                                                                      | 46                                                                                                                      | 85                                                                                                                      | 92                                                                                                                      | 200                                                                                                                     | 0                                                                                                                       | 57                                                                                                                      | 6464                                                     | 28.9                         |
| Karnataka      | 355                                                                                                                     | 778                                                                                                                     | 633                                                                                                                     | 987                                                                                                                     | 1248                                                                                                                    | 2321                                                                                                                    | 3673                                                                                                                    | 972                                                                                                                     | 32775                                                    | 77.3                         |
| Kerala         | 1690                                                                                                                    | 1592                                                                                                                    | 1944                                                                                                                    | 3467                                                                                                                    | 6070                                                                                                                    | 7505                                                                                                                    | 15726                                                                                                                   | 2136                                                                                                                    | 10908                                                    | 77.7                         |
| Madhya Pradesh | 91                                                                                                                      | 119                                                                                                                     | 152                                                                                                                     | 270                                                                                                                     | 629                                                                                                                     | 1168                                                                                                                    | 1952                                                                                                                    | 321                                                                                                                     | 27414                                                    | 45.7                         |
| Maharashtra    | 102                                                                                                                     | 453                                                                                                                     | 232                                                                                                                     | 455                                                                                                                     | 582                                                                                                                     | 2071                                                                                                                    | 3869                                                                                                                    | 547                                                                                                                     | 40672                                                    | 57.3                         |
| Odisha         | 88                                                                                                                      | 167                                                                                                                     | 337                                                                                                                     | 181                                                                                                                     | 326                                                                                                                     | 1302                                                                                                                    | 22281                                                                                                                   | 282                                                                                                                     | 25830                                                    | 57.5                         |
| Punjab         | 131                                                                                                                     | 246                                                                                                                     | 516                                                                                                                     | 1641                                                                                                                    | 2292                                                                                                                    | 3266                                                                                                                    | 9274                                                                                                                    | 1195                                                                                                                    | 7499                                                     | 53.2                         |
| Rajasthan      | 1694                                                                                                                    | 334                                                                                                                     | 431                                                                                                                     | 678                                                                                                                     | 1031                                                                                                                    | 1548                                                                                                                    | 1528                                                                                                                    | 705                                                                                                                     | 40055                                                    | 61.8                         |
| Tamil Nadu     | 377                                                                                                                     | 674                                                                                                                     | 1192                                                                                                                    | 1200                                                                                                                    | 2147                                                                                                                    | 3224                                                                                                                    | 4512                                                                                                                    | 1159                                                                                                                    | 26780                                                    | 82.5                         |
| Telangana      | 563                                                                                                                     | 578                                                                                                                     | 794                                                                                                                     | 1033                                                                                                                    | 1097                                                                                                                    | 1369                                                                                                                    | 2690                                                                                                                    | 935                                                                                                                     | 22628                                                    | 89.1                         |
| Uttar Pradesh  | 219                                                                                                                     | 160                                                                                                                     | 218                                                                                                                     | 457                                                                                                                     | 1075                                                                                                                    | 1248                                                                                                                    | 2178                                                                                                                    | 273                                                                                                                     | 79081                                                    | 43.8                         |
| West Bengal    | 57                                                                                                                      | 146                                                                                                                     | 197                                                                                                                     | 330                                                                                                                     | 329                                                                                                                     | 435                                                                                                                     | 2760                                                                                                                    | 178                                                                                                                     | 32787                                                    | 51.5                         |
| All India*     | 311                                                                                                                     | 239                                                                                                                     | 354                                                                                                                     | 548                                                                                                                     | 949                                                                                                                     | 1827                                                                                                                    | 2903                                                                                                                    | 470                                                                                                                     | 468481                                                   | 51.9                         |

| States/UTs        |   Average Amount of Debt per Cultivator Household (Rs.) |
|-------------------|---------------------------------------------------------|
| Andhra Pradesh    |                                                   87777 |
| Arunachal Pradesh |                                                    3763 |
| Assam             |                                                    4580 |
| Bihar             |                                                   19672 |
| Chhattisgarh      |                                                   11677 |
| Delhi             |                                                    6957 |
| Goa               |                                                   28161 |
| Gujarat           |                                                   28667 |
| Haryana           |                                                   64916 |
| Himachal Pradesh  |                                                   39504 |
| Jammu & Kashmir   |                                                   12613 |
| Jharkhand         |                                                    7004 |
| Karnataka         |                                                   66127 |
| Kerala            |                                                  171581 |
| Madhya Pradesh    |                                                   26255 |
| Maharashtra       |                                                   43129 |
| Manipur           |                                                    5275 |
| Meghalaya         |                                                    1697 |
| Mizoram           |                                                    4206 |
| Nagaland          |                                                    2271 |
| Odisha            |                                                   12480 |
| Punjab            |                                                  120889 |
| Rajasthan         |                                                   52150 |
| Sikkim            |                                                   46896 |
| Tamil Nadu        |                                                   64298 |
| Telangana         |                                                   68028 |
| Tripura           |                                                    3636 |
| Uttarakhand       |                                                   26336 |
| Uttar Pradesh     |                                                   25805 |
| West Bengal       |                                                   14848 |
| A & N Islands     |                                                   15483 |
| Chandigarh        |                                                    6338 |
| Dadra & N. Haveli |                                                    5864 |
| Daman & Diu       |                                                   36388 |
| Lakshadweep       |                                                   11407 |
| Puducherry        |                                                   59076 |

NSSO Report No.577: Household Indebtedness in India

******