Lok Sabha Question No. 47 (STARRED), answered on 2026-02-03
Subject: Outstanding Farm Debt
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: Shri E T Mohammed Basheer

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

## LOK SABHA STARRED QUESTION NO. 47

TO BE ANSWERED ON THE 03 RD  FEBRUARY, 2026

## OUTSTANDING FARM DEBT

- *47. SHRI E. T. MOHAMMED BASHEER:

Will the Minister of AGRICULTURE AND FARMERS WELFARE क ृ िष और िकसान कʞाण मंũी be pleased to state: (a) the details of the total outstanding farm debt across the country along with the plans to provide debt relief to marginalized farmers; (b) the steps being taken to regulate informal lending and expand access to low-interest institutional credit for small and marginal farmers; and (c) indebtedness and ensuring targeted relief for the most vulnerable

- the  manner  in  which  the  Government  is  addressing  regional  disparities  in  farm farming communities?

## ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE क ृ िष और िकसान कʞाण मंũी (SHRI SHIVRAJ SINGH CHOUHAN)

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

STATEMENT  REFERRED  TO  IN  REPLY  TO  PART  (a)  to  (c)  OF  LOK  SABHA STARRED  QUESTION  NO.  47  DUE  FOR  ANSWER  ON  03 RD   FEBRUARY,  2026 REGARDING OUTSTANDING FARM DEBT.

(a) to (c): As  per    Situation  Assessment  Survey  (SAS)  of  Agricultural  Households conducted by Ministry of Statistics and Programme Implementation (MoSPI) during NSS 77th  round  (January,  2019  -  December,  2019)  in  the  rural  areas  of  the  country,  the average amount of outstanding loan per agricultural household across the country is Rs. 74,121 .

The Government has taken various steps to promote institutional credit among rural households which inter-alia include annual fixing of ground level agriculture credit target to banks, Priority Sector lending targets to banks, access to affordable credit through Kisan Credit  Card  (KCC)/  Modified  Interest  Subvention  Scheme  (MISS)  etc.  Further,  the Government  has  also  implemented  structured  long-term  measures  to  economically empower farmers. These initiatives include direct cash benefit schemes (PM Kisan), crop insurance (PMFBY), subsidy and grant-based programs (Krishonnati Yojna, RKVY) etc.

To  improve  credit  access  and  reduce  rural  distress  over  the  long  term,  the government is implementing a 100% centrally funded Central Sector Scheme known as the Modified lnterest Subvention Scheme (MISS) across various States and UTs in pan lndia. This scheme aims to provide concessional interest rates on short-term agricultural loans  obtained  by  farmers  through  Kisan  Credit  Cards  (KCC)  for  their  working  capital requirements.  Due  to  KCC-MISS  scheme  access  to  easy  and  affordable  credit  has increased  significantly  to  farmers  to  meet  their  operational  needs.  Under this  scheme, farmers receive KCC loans at a subsidized interest rate of 7%. To facilitate this, an up front interest subvention (IS) of 1.5% is provided to financial institutions. Additionally, farmers who  repay  their  loans  promptly  receive  a  3%  Prompt  Repayment  Incentive  (PRI), effectively reducing the interest rate to 4% per annum.

Further,  to  provide  assured  income  support  and  reduce  financial  stress  among small and marginal farmers, the Government is implementing the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) Scheme, a 100% Central Sector Scheme. Under the scheme, eligible  farmer  families  receive  income  support  of  ₹6,000  per  year  in  three  equal instalments through Direct Benefit Transfer (DBT). The scheme provides timely liquidity for agricultural and household needs, helps reduce dependence on informal credit, and complements  institutional  credit  initiatives  such  as  the  Kisan  Credit  Card  (KCC).  The Government of India has disbursed over Rs 4.09 lakh Cr. through 21 installments since inception. 21 st  installment of PM-Kisan scheme was released on 19 th  November, 2025 and more than 9.34 crore farmers received the benefits.

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