Debt Trap

Debt Trap

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• The NSS 59th Round (January-December 2003) had found that 48.6% farmerhouseholds were indebted while the NSS 70th Round (January-December 2013) has observed that 52% of India's agricultural households were indebted in July, 2012-June, 2013 $


• A similar survey on rural indebtedness by the NSSO in 1991 found indebtedness among only 26% of farmers $


•On an average, the amount of debt per farmer household was Rs. 12,585 during NSS 59th Round, which increased by nearly 4 times to reach Rs. 47000 per agricultural household during the NSS 70th Round $

• Based on a survey of 4529 villages, the NSS 70th Round report tells us that among the major Indian states, Andhra Pradesh has the highest shareof indebted agricultural households in the country (92.9%), followed byTelangana (89.1%) and Tamil Nadu (82.5%). Assam (17.5%), Jharkhand (28.9%), and Chhattisgarh (37.2%) are some of the major Indian states with lowest share of indebted agricultural households $

• Out of 9334 accounts test checked in CAG audit across nine states, 1257 accounts (13.46 percent) were those which were found in audit to be eligible for benefit under the Agricultural Debt Waiver and Debt Relief Scheme (ADWDRS), 2008, but were not considered by the lending institutions while preparing the list of eligible farmers €

• Out of 80299 accounts granted debt waiver or debt relief, in 8.5 percent of cases, the beneficiaries were not eligible for either the debt waiver or the relief €

• Out of 89.35 million farmer households, 43.42 million (48.6%) were reported to be indebted*

• On an average, the amount of debt per farmer household was Rs. 12,585*

• The incidence of indebtedness was highest in Andhra Pradesh (82.0%), to be followed by Tamil Nadu (74.5%), Punjab (65.4%), Kerala (64.4%), Karnataka (61.6%) and Maharashtra (54.8%)*

• At the national level, on an average, 29 out of 100 indebted households borrowed from ‘agricultural/professional money lender’*

• Average outstanding loan per farmer household was highest in the state of Punjab, to be followed by Kerala, Haryana, Andhra Pradesh and Tamil Nadu*

• Estimated number of indebted farmer households was highest in Uttar Pradesh (6.9 million), to be followed by Andhra Pradesh (4.9 million) and Maharashtra (3.6 million)*


$ Key Indicators of Situation Assessment Survey of Agricultural Householdsin India, NSS 70th Round (January, 2013- December, 2013) are asfollows (Please click here to access)

€ Report no. 3 of 2013-Union Government (Ministry of Finance)-Report of the Comptroller and Auditor General of India on Implementation of Agricultural Debt Waiver and Debt Relief Scheme. 2008,

* Situation Assessment Survey of Farmers Indebtedness of Farmer Households NSS 59th Round (January–December 2003)


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