Robust support system needed to reduce farm debt burden

AS newly released data highlights the huge burden of agricultural debt on India’s farmers, a fundamental question arises — is the credit system out of sync with how farming works? Andhra Pradesh tops the list with an average debt of Rs 2,45,554 per agricultural household. Punjab has reported an average loan burden of Rs 2,03,249, while Haryana follows at Rs 1,82,922. The figure for Himachal Pradesh is Rs 85,825. If credit dependency and the resulting debt persist on such a large scale despite governments’ claims of championing farmer-friendly schemes and loan waivers, there are undeniably gaps in policy formulation and execution. Essentially, a simple cash handout may not be the answer in the absence of a multi-pronged support system. Urgent reforms in the credit strategy need to relook at the terms and timing of repayment too.