English Article

Farmers Debt Issue

Farmers’ debt rose 53% in 6 years, Centre tells RS.

Farmers’ debts increased 53% over the past six years, the Union Finance Ministry told the Rajya Sabha on Tuesday. In 2020-21, outstanding agricultural loans for scheduled commercial banks amounted to more than `18.4 lakh crore, in comparison to `12 lakh crore in 2015-16, with the number of farmers’ accounts holding such debts also growing from 6.9 crore to more than 10 crore. The data, sourced from the RBI, was presented to the Rajya Sabha in a written response to a query from Indian Union Muslim League MP Abdul Wahab, who asked for details of farmers’ debts and loan waivers. In response, Minister of State Bhagwat Karad said the Centre had not implemented any loan waivers over the past six years, nor was any such proposal under consideration. Instead, he listed various initiatives taken to reduce the debt burden, including interest subvention schemes, collateral free agricultural loans for small farmers and income support and farm insurance schemes, noting that efforts had been made to bring farmers into the fold of institutional credit rather than leaving them at the mercy of informal loans. The growth of farmers’ debt burden is highest in Maharashtra, a whopping 116% increase in the outstanding amounts due over the six-year period. In absolute terms as well, Maharashtra farmers owe the highest amount of `5.5 lakh crore by way of agricultural loans. Incidentally, the State also consistently has the largest number of farmer suicides, as recorded by the National Crime Records Bureau. Other States which saw significant increase in farmers’ debt burden include Odisha (76%), Tamil Nadu (68%), Andhra Pradesh (65%) and Gujarat (64%). Only a few States bucked the trend, with Karnataka posting a 37% drop and Punjab a modest 4.5% drop.