SRINAGAR: Farmers in Jammu and Kashmir have an average outstanding loan of Rs 30,435 per agricultural household, placing them below the national average of Rs 74,121, according to data from the Ministry of Agriculture and Farmers Welfare. The figures, sourced from the National Statistical Office’s 77th round survey conducted in 2018-19, were presented in the Lok Sabha in response to an unstarred question. The data reveals significant disparities across states, with Punjab leading the country in farmer indebtedness at Rs 2,03,249 per agricultural household.
While Jammu and Kashmir’s debt burden is lower than in many states, farmers in the region face unique financial challenges. Limited access to institutional credit has forced many to rely on informal borrowing at higher interest rates. Additionally, farmers struggle with delayed payments, high transportation costs, and limited market access, which contribute to financial distress. Agricultural experts have urged the government to introduce region-specific policies to support horticulture and improve loan accessibility, which could prevent farmers from falling into unmanageable debt cycles.
States with highly commercialised agriculture, such as Andhra Pradesh (Rs 2,45,554), Kerala (Rs 2,42,482), and Haryana (Rs 1,82,922), also report significantly higher debt levels. This is attributed to greater investments in mechanisation, fertilisers, and high-input farming. In contrast, several northeastern states, such as Nagaland (Rs 1,750) and Meghalaya (Rs 2,237), report minimal farmer debt.
The government has implemented multiple schemes to address the issue of farmer indebtedness, including the Modified Interest Subvention Scheme (MISS), which offers concessional interest rates on Kisan Credit Card (KCC) loans. Farmers who repay promptly can access credit at an effective interest rate of 4 per cent. Additionally, the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) provides Rs 6,000 per year in direct financial support to farmers, while the Pradhan Mantri Fasal Bima Yojana (PMFBY) offers crop insurance to mitigate financial losses.
Despite these interventions, farmer groups argue that the measures have not been sufficient to reduce the overall debt burden. With indebtedness emerging as a crucial factor in agrarian distress, they have called for direct debt relief measures, increased financial support, and a restructuring of agricultural credit policies to ensure sustainable farming livelihoods.
