Executive Summary:
This document provides the government's response to questions regarding agricultural debt burden, steps to provide debt relief, the effectiveness of interest subsidy schemes, and measures to support farmers. It references data from the National Statistics Office's 2019 Situation Assessment Survey (SAS) and outlines various government schemes and initiatives aimed at alleviating farmer distress and promoting agricultural development. The schemes mentioned are being implemented across States and UTs in pan India. The document also highlights the launch of the Kisan Rin Portal (KRP) in September 2023 to improve transparency in administering the Modified Interest Subvention Scheme (MISS).
Key Points / Main Content:
Agricultural Debt:
* The National Statistics Office (NSO) conducted a Situation Assessment Survey (SAS) of Agricultural Households during January-December 2019, referencing the agricultural year July 2018-June 2019.
* The average amount of outstanding loan per agricultural household for different States/UTs, including Madhya Pradesh and Maharashtra, during the agricultural year July 2018-June 2019, is detailed in Annexure I.
Government Schemes and Initiatives:
* Modified Interest Subvention Scheme (MISS): A centrally funded scheme providing concessional interest rates on short-term agricultural loans through Kisan Credit Cards (KCC).
* The number of operative KCC accounts has reached 7.72 crore in 2024-25, contributing to an increase in credit extended from Rs. 14.26 lakh crore in 2013-14 to Rs. 10.20 lakh crore in 2024-25.
* The budget allocation for interest subvention under MISS has increased 3.7 times, from Rs. 6,000 crore in 2014-15 to Rs. 22,600 crore in 2024-25.
* Farmers have availed Rs. 1.62 lakh crore as interest subvention on loans through KCCs over the past eleven years.
* Total credit flow to the agriculture sector has nearly quadrupled, rising from Rs. 7.3 lakh crore in 2013-14 to Rs. 28.69 lakh crore in 2024-25, with credit disbursed to small and marginal farmers (SMFs) growing to Rs. 14.35 lakh crore.
* Other initiatives include the Agriculture Infrastructure Fund (AIF) and Pradhan Mantri Fasal Bima Yojana (PMFBY).
* Kisan Rin Portal (KRP): Launched in September 2023 to facilitate prompt settlement of MISS claims and streamline loan disbursement with Aadhar-based authentication.
Government Commitment:
* The government is committed to enhancing farmer welfare through policy measures, budgetary support, and various schemes and programs.
* The budget allocation for the Department of Agriculture & Farmers Welfare (DAFW) has increased from Rs. 21933.50 crore BE in 2013-14 to Rs. 1,27,290.16 crore BE in 2025-26.
* The government has increased MSPs for all mandated Kharif, Rabi, and other Commercial crops, ensuring a minimum return of 50 percent over the all-India weighted average cost of production from 2018-19 onwards.
* Annexure II lists major schemes and programs for farmer welfare.
Impact Analysis:
Farmers:
* Impact: Access to affordable credit through KCC and MISS, financial support through PMFBY, increased MSPs, and various welfare schemes aimed at increasing production and income.
* Action Required: Avail benefits of KCC, MISS, PMFBY, and other relevant schemes; utilize the Kisan Rin Portal for loan-related information and processes.
Government of India (Ministry of Agriculture & Farmers Welfare):
* Impact: Responsible for implementing and monitoring various schemes and programs aimed at reducing farmer debt and improving agricultural income.
* Action Required: Ensure effective implementation of MISS, AIF, PMFBY, and other schemes; maintain the Kisan Rin Portal; continue policy support and budgetary allocations for agricultural development.
National Statistics Office (NSO):
* Impact: Tasked with conducting surveys to assess the situation of agricultural households and provide data for policy formulation.
* Action Required: Continue conducting regular Situation Assessment Surveys to monitor the agricultural debt burden and inform policy decisions.
Financial Institutions (Banks, Credit Societies):
* Impact: Involved in disbursing agricultural loans under KCC and MISS.
* Action Required: Ensure efficient and transparent loan disbursement processes; comply with guidelines for MISS; utilize the Kisan Rin Portal for claim settlements.
Key Entities Referenced
Madhya Pradesh: A state in India mentioned in the context of agricultural debt burden on Indian farmers.
Maharashtra: A state in India mentioned in the context of agricultural debt burden on Indian farmers.
National Statistics Office NSO: An office under the Ministry of Statistics and Programme Implementation (MoSPI) that conducted a Situation Assessment Survey (SAS) of Agricultural Households.
Kisan Credit Cards KCC: A credit card scheme for farmers to provide short-term agricultural loans, used in the Modified Interest Subvention Scheme (MISS).
Modified lnterest Subvention Scheme MISS: A centrally funded Central Sector Scheme that aims to provide concessional interest rates on short-term agricultural loans obtained by farmers.
Agriculture Infrastructure Fund AIF: A fund providing institutional credit to farmers.
Pradhan Mantri Fasal Bima Yojana PMFBY: A crop insurance scheme providing financial support to farmers suffering crop loss/damage.
Kisan Rin Portal KRP: A digital platform launched by the Government of India to facilitate the prompt settlement of claims related to the Modified Interest Subvention Scheme (MISS).
O.I.H
GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
DEPARTMENT OF AGRICULTURE AND FARMERS WELFARE
LOK SABHA
UNSTARRED QUESTION NO. 2739
TO BE ANSWERED ON THE 05TH AUGUST, 2025
AGRICULTURAL DEBT BURDEN
2739. SMT. BHARTI PARDHI:
SHRI SHRIRANG APPA CHANDU BARNE:
SHRI BHAUSAHEB RAJARAM WAKCHAURE:
Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ िष एवं िकसान क(cid:670)ाण मं(cid:361)ी
be pleased to state:
(a) the total estimated agricultural debt burden on Indian farmers, particularly in States
of Madhya Pradesh and Maharashtra;
(b) whether any comprehensive study on the causes and extent of indebtedness of
farmers has been conducted recently by the Government, if so, the conclusions thereof;
(c) whether any concrete steps being taken to provide meaningful debt-relief to
distressed farmers apart from ad-hoc loan waiving;
(d) the extent to which the interest subsidy schemes are effective for agricultural loans;
(e) whether these benefits are reaching the targeted beneficiaries being availed
adequately, if so, the details thereof;
(f) whether any measures are in place to prevent their misuse or diversion; and
(g) the steps being taken by the Government to make the farmers debt free and provide
them financial support?
ANSWER
MINISTER OF STATE FOR AGRICULTURE AND FARMERS WELFARE
कृ िष एवं िकसान क(cid:670)ाण रा(cid:475) मं(cid:361)ी (SHRI RAMNATH THAKUR)
(a) & (b): The National Statistics Office (NSO), Ministry of Statistics and Programme
Implementation (MoSPI) conducted a Situation Assessment Survey (SAS) of Agricultural
Households during NSS 77th round (January, 2019 – December, 2019) with reference to
the agricultural year July, 2018- June, 2019 in the rural areas of the country. As per the
SAS, the loan was taken for different purposes which include capital expenditure in farm
business, revenue expenditure in farm business, non-farm business, for housing,
marriages and ceremonies, education and medical, other consumption expenditure and
others. The average amount of outstanding loan per agricultural household for different
States/UTs including Madhya Pradesh and Maharashtra during agricultural year July,
2018- June, 2019 is given in Annexure-I.(c) to (e): The government is implementing a 100% centrally funded Central Sector Scheme
known as the Modified lnterest Subvention Scheme (MISS) across various States and UTs in
pan lndia. This scheme aims to provide concessional interest rates on short-term agricultural
loans obtained by farmers through Kisan Credit Cards (KCC) for their working capital
requirements. Due to KCC-MISS scheme access to easy and affordable credit has increased
significantly to farmers to meet their operational needs. The number of operative KCC
accounts has reached to 7.72 crore in 2024-25, which has contributed to an increase in credit
extended amount from Rs.14.26 lakh crore in 2013-14 to Rs. 10.20 lakh crore in 2024-25.
The budget allocation for interest subvention under MISS to farmers has increased 3.7
times rising from Rs. 6,000 crore in 2014-15 to Rs. 22,600 crore in 2024-25. Over the past
eleven years, farmers have availed Rs.1.62 lakh crore as interest subvention on loans
through KCCs.
Similarly, the total credit flow to the agriculture sector has nearly grown four times rising
from Rs. 7.3 lakh crore in 2013-14 to Rs. 28.69 lakh crore in 2024-25. Out of which, Credit
disbursed to small and Marginal Farmers (SMFs) has grown to Rs. 14.35 lakh crore during
this period.
Besides KCC-MISS, Agriculture Infrastructure Fund (AIF) also provide institutional
credit to farmers. Pradhan Mantri Fasal Bima Yojana (PMFBY) provides financial support
to farmers suffering crop loss/damage arising out of unforeseen events
and ensure flow of credit to the agriculture sector. By offering loans/financial support, these
schemes help reduce the cost of borrowing, encourage timely repayment, and promote
better credit discipline. They also reduce dependence on informal credit sources and help
bridge short-term credit gaps during critical periods like sowing and harvesting.
(f): To ensure transparency and efficiency in administering MISS, a digital platform namely
Kisan Rin Portal (KRP) has been launched by the Government of India in September 2023.
This portal facilitates the prompt settlement of claims related to the MISS and helps simplify
and speed up the loan disbursement process to identified beneficiaries. All the beneficiaries
are authenticated and verified based on Aadhar to prevent misuse.
(g): Government of India is committed to enhance the welfare of farmers and making
agriculture more remunerative. Government of India supplements the efforts of States
through appropriate policy measures and budgetary support and various schemes/
programmes. The Government has substantially enhanced the budget allocation of
Department of Agriculture & Farmers Welfare(DA&FW) from Rs. 21933.50 crore BE during
2013-14 to Rs. 1,27,290.16 crore BE during 2025-26. The various schemes/ programmes
of the Government of India are meant for the welfare of farmers by increasing production,
remunerative returns and income support to farmers. These schemes encompass entire
spectrum of agriculture including credit, insurance, income support, infrastructure, crops
including horticulture, seeds, mechanization, marketing, organic and natural farming,
farmer collectives, irrigation, extension, procurement of crops from farmers at minimum
support prices, digital agriculture etc. Additionally, Government had increased MSPs for all
mandated Kharif, Rabi and other Commercial crops with a minimum return of 50 percent
over all India weighted average cost of production from 2018-19 onwards. List of Central
Sector and Centrally Sponsored Schemes being implemented by Department of
Agriculture & Farmers Welfare (DA&FW) is given in Annexure-II.Annexure-I
STATEMENT IN REPLY TO PART (a) OF LOK SABHA UNSTARRED QUESTION NO.
2739 TO BE ANSWERED ON 05/08/2025 REGARDING ‘AGRICULTURAL DEBT
BURDEN’.
Sl.No. State/Group of NE Average amount (Rs.) of outstanding loan per
States/ Group of UTs agricultural household
1 Andhra Pradesh 2,45,554
2 Arunachal Pradesh 3,581
3 Assam 16,407
4 Bihar 23,534
5 Chhattisgarh 21,443
6 Gujarat 56,568
7 Haryana 1,82,922
8 Himachal Pradesh 85,825
9 Jammu & Kashmir 30,435
10 Jharkhand 8,415
11 Karnataka 1,26,240
12 Kerala 2,42,482
13 Madhya Pradesh 74,420
14 Maharashtra 82,085
15 Manipur 5,551
16 Meghalaya 2,237
17 Mizoram 23,485
18 Nagaland 1,750
19 Odisha 32,721
20 Punjab 2,03,249
21 Rajasthan 1,13,865
22 Sikkim 32,185
23 Tamil Nadu 1,06,553
24 Telangana 1,52,113
25 Tripura 23,944
26 Uttarakhand 48,338
27 Uttar Pradesh 51,107
28 West Bengal 26,452
Group of N E States 10,034
Group of UTs 25,629
All India 74,121
Source: NSS Report No. 587: Situation Assessment of Agricultural Households and Land
and Livestock Holdings of Households in Rural India, 2019Annexure II
STATEMENT IN REPLY TO PART (g) OF LOK SABHA UNSTARRED QUESTION NO.
2739 ANSWERED ON 05/08/2025 REGARDING AGRICULTURAL DEBT BURDEN
Major schemes/programmes meant for the welfare of farmers by increasing
production, remunerative returns and income support to the farmers:
1. National Food Security and Nutrition Mission (NFSNM)
2. National Mission on Edible Oils (NMEO)-Oil Palm
3. National Mission on Edible Oils (NMEO)-Oilseeds
4. National Mission on Natural Farming (NMNF)
5. Paramparagat Krishi Vikas Yojana (PKVY)
6. Soil Health & Fertility (SH&F)
7. Rainfed Area Development (RAD)
8. Agroforestry
9. Crop Diversification Programme (CDP)
10. Sub-Mission on Agriculture Extension (SMAE)
11. Sub-Mission on Seed and Planting Material (SMSP)
12. Mission for Integrated Development of Horticulture (MIDH)
13. National Bamboo Mission
14. National Bee Keeping and Honey Mission (NBHM)
15. Mission Organic Value Chain Development for North Eastern Region
16. Per Drop More Crop (PDMC)
17. Integrated Scheme for Agriculture Marketing (ISAM)
18. Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
19. Pradhan Mantri Kisan Maan Dhan Yojana (PM-KMY)
20. Pradhan Mantri Fasal Bima Yojana (PMFBY)/ Restructured Weather Based Crop
Insurance Scheme (RWBCIS)
21. Pradhan Mantri Annadata Aay SanraksHan Abhiyan (PM-AASHA)
22. Modified Interest Subvention Scheme (MISS)
23. Agriculture Infrastructure Fund (AIF)
24. Formation and Promotion of 10,000 new Farmer Producers Organizations (FPOs)
25. Namo Drone Didi
26. Agri Fund for Start-Ups & Rural Enterprises (AgriSURE)
27. Sub-Mission on Agriculture Mechanization (SMAM)
28. Digital Agriculture Mission
*****