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Resource centre on India's rural distress
 
 

1 in 2 farmer households in debt: Study by B Sivakumar


A National Sample Survey Organisation ( NSSO) study found that nearly half of the country's farmer households are in debt. Andhra Pradesh, Tamil Nadu and Punjab are the top three states recording highest percentage of farmers in debt. 

Of the 89.35 million farmer households in the country, 43.42 million are unable to come out of the debt trap, the report said. AP tops the chart with 82% of farmers in debt, followed by TN (74.5%), Punjab (65.4%), Kerala (64.4%) and Karnataka (61.6%). In terms of numbers, UP tops the list with 6.9 million farmer households in debt, followed by AP (4.9 million) and Maharashtra (3.6 million). 

The survey, which began in 2003, 'covered 51,770 households in 6,638 villages. Over 50% of the households in debt have taken loans to meet capital or current expenditure for farming , the report said. In a written reply to the LS, Union minister of state for agriculture Harish Rawat quoted the report saying crop failures push farmers into debt trap.