Question : Debt Burden on Farmers

(a) whether around 52% of farmers are reeling under debt burden and their growth of income is also negative;

(b) the details of indebtedness of farmers in the country including loan amount per farmer, State-wise;

(c) whether the increase in farmers’ loans has been due to granting of more institutional loans to farmers by banks generously and if so, the response of the Government thereto and the steps taken by the Government in this regard;

(d) whether any synergy has been established between Union and State to increase income of farmers and reduce their debt burden and if so, the details and the outcome thereof; and

(e) whether debt burden on each farmer is more than that of average annual per capita income in the country and if so, the details thereof?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE

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(a) & (b): As per National Sample Survey Organisation (NSSO) Report No. 498 on the “Indebtedness of Farmer Households” (as part of Situation Assessment Survey of Farmers – 59th Round), of the 89.35 million farmer households, 43.42 million (48.6%) were reported to be indebted to either formal or informal or both sources of credit (Annexure-I).

(c) to (e): Government has taken several steps to popularize agriculture by increasing investment, improving farm practices, creating rural infrastructure and ensuring timely delivery of credit, technology and other inputs and providing remunerative prices for farm produce through increased MSPs, higher level of procurement & competitive markets. Measures were taken by Government to minimise indebtedness from non-institutional sources of lending
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includes fixation of annual targets for improving agricultural credit flow, 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, extention 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.

Based on the Situation Assessment Survey of Agricultural Househoulds, NSS 70th round (January 2013-December, 2013), the average monthly income is Rs.6,426 against the average amount of outstanding loan of Rs.47,000 per agricultural household. The State/UT-wise details of estimates of outstanding loan and average monthly income per farmer household during the agricultural year July 2012-June 2013 is qt. Annexure-II.