Parliament Question: Financial Stress on Farmers

GOVERNMENT OF INDIA MINISTRY OF FINANCE DEPARTMENT OF FINANCIAL SERVICES LOK SABHA UNSTARRED QUESTION NO. 3762 ANWERED ON MONDAY, MARCH 16, 2026/ PHALGUNA 25, 1947 (SAKA) Financial Stress on Farmers 3762. MRS RUCHI VIRA: † Will the Minister of FINANCE be pleased to state: (a) whether the Government has made any comprehensive assessment of the increasing financial pressure on farmers, small traders, artisans and low-income families in Moradabad district, Uttar Pradesh, particularly in Bilari, Kundarki, Thakurdwara and rural conjoint areas, where livelihoods are being affected by the combined effect of limited access to institutional credit, rising agricultural and production costs, delay in subsidy transfer, inadequate crop insurance coverage and inflation; (b) if so, the details of measures taken by the Government in the district in terms of credit expansion, interest subvention schemes, status of direct benefit transfer, insurance claims settlement mechanism and financial inclusion initiatives and the data indicating the timelines and effectiveness of these measures; and (c) if not, the reasons therefor? ANSWER THE MINISTER OF STATE IN THE MINISTRY OF FINANCE (SHRI PANKAJ CHAUDHARY) (a) Due to the constant efforts of the Government, the monthly income and institutional credit of rural/agricultural households have substantively increased. The second All‑India Rural Financial Inclusion Survey (NAFIS 2021‑22 published in 2024) conducted by NABARD for the reference Agricultural Year 2021–2022, across 28 states including the state of Uttar Pradesh and 02 UTs (J&K & Ladakh), has identified the following key points regarding improvement in income stability and credit access by farmers through formal sources: i. Income - Average monthly income of rural households of the country increased by 57.6% during the five-year period from ₹8,059 in 2016-17 to ₹12,698 in 2021-22. ii. Credit Access - 75% of Agricultural households of the country availed loans from institutional sources in 2021-22 which was 60.50% in 2016-17. (b) and (c) The Government has taken various steps for credit expansion through its various financial inclusion schemes viz., Pradhan Mantri MUDRA Yojana (PMMY), PM Vishwakarma, PM SVANidhi Scheme, Stand-Up India Scheme etc. in the Moradabad district of Uttar Pradesh. The details of loans sanctioned/disbursed under the above-mentioned schemes are provided at Annexure.Apart from the above, as reported by SLBC, Uttar Pradesh and NABARD, following measures have also been taken to strengthen the financial condition of the farmers, small traders, artisans and low-income families of Moradabad districts of Uttar Pradesh: • The Annual Credit Plan (ACP) of banks allocates credit to the Priority sectors (agriculture, housing education, etc.), including farmers, artisans, low-income families. Upto 31 December 2025, a total amount of Rs 15,488 crore has been disbursed under ACP. • Through Kisan Credit Card (KCC) timely and affordable credit has been provided to the farmers for purchasing agricultural inputs as well as for meeting cash requirements related to crop production and allied activities. As reported by State Level Bankers’ Committee (SLBC), Uttar Pradesh, the total number of Operative KCC Accounts as on 31.12.2025 was 1,25,927 and the total amount outstanding thereon was Rs 2,245.75 crore. • 13,727 farmers with a total area of 5,381 hectare were covered under crop insurance in Kharif and Rabi 2025-26. • Till December 2025, 12 projects with a total outlay of Rs. 167.64 lakh have been sanctioned under Pradhan Mantri Formalisation of Micro Food Processing Enterprises (PMFME) Scheme. • As on 11.03.2026, 11 new Multipurpose Primary Agricultural Credit Societies (MPACS) have been formed for facilitating timely credit and other needs of farmers, along with promoting financial inclusion. *****Annexure Annexure referred to in part (b) and (c) of Lok Sabha Un-Starred Question no. 3762 on “Financial Stress on Farmers” answered on 16.03.2026 Details of loans sanctioned/disbursed in the State of Uttar Pradesh and Moradabad district under various financial inclusion schemes Pradhan Mantri Mudra Yojana (No. of accounts in actual and amount in Rs. Crore) Uttar Pradesh Moradabad Financial Sanctioned Sanctioned Year A/Cs A/Cs Amount Amount 2023-24 76,79,518 59,506.73 1,04,050 879.33 2024-25 59,24,230 58,837.78 87,928 875.05 2025-26* 47,37,733 58,866.70 83,090 956.38 Source: As per data uploaded by Member Lending Institutions on Mudra portal *: Data as of 27.02.2026 PM Vishwakarma (No. of accounts in actual and amount in Rs. Crore) Uttar Pradesh Moradabad Financial Year Sanctioned Sanctioned A/Cs A/Cs Amount Amount 2024-25 9,544 86.96 51 0.42 2025-26* 6,059 51.81 68 0.52 Source: PM Vishwakarma Portal; *: As on 11.03.2026 PM SVANidhi Scheme (No. of accounts in actual and amount in Rs. Crore) Uttar Pradesh Moradabad Financial Year Sanctioned Sanctioned A/Cs A/Cs Amount Amount 2023-24 6,89,649 1125.91 18,142 30.48 2024-25 1,53,627 329.29 3,749 8.29 2025-26* 1,99,776 474.97 2,994 7.87 Source: Ministry of Housing and Urban Affairs; *: As on 10.03.2026 Stand Up India Scheme (No. of accounts in actual and amount in Rs. Crore) Uttar Pradesh Moradabad Financial Year Sanctioned Sanctioned A/Cs A/Cs Amount Amount 2022-23 2,835 592.9 49 9.53 2023-24 4,019 875.25 77 15.2 2024-25 4,876 1076.10 100 22 Scheme was valid/operational till 31st March 2025 Source: SIDBI