Punjab, Haryana among heaviest farm debt burden states

The burden of agricultural debt continues to weigh heavily on India’s farmers, with Punjab, Haryana, Himachal Pradesh and Uttar Pradesh emerging among the states where agricultural households carry some of the highest average outstanding loans, as per newly released national data.

While Andhra Pradesh tops the list with an average farm debt of Rs 2,45,554 per household, other states in both northern and southern India reflect worrying levels of rural indebtedness.

Among the northern states, Punjab reported the third-highest average loan burden at Rs 2,03,249, while Haryana closely followed at Rs 1,82,922, according to an answer in Lok Sabha today by Minister of State for Agriculture Ramnath Thakur.

Himachal Pradesh also stood high on the chart with Rs 85,825 and Uttar Pradesh, India’s most populous state, reported an average of Rs 51,107 per agricultural household.

These figures reflect persistent credit dependency among farmers, often linked to rising input costs, stagnant income, erratic weather conditions and delays in procurement payments.

Experts warn that this growing debt could become unsustainable unless systemic reforms are introduced.

States in southern India dominate the upper end of the debt spectrum.

Andhra Pradesh holds the highest average at Rs 2,45,554, followed by Kerala (Rs 2,42,482), Telangana (Rs 1,52,113), Karnataka (Rs 1,26,240) and Tamil Nadu (Rs 1,06,553).

These states have seen a proliferation of both institutional and non-institutional credit sources, leading to increased debt despite higher agricultural production in some cases.

The data reveals stark regional differences.

The all-India average of outstanding loans per agricultural household stands at Rs 74,121, but the range across states is vast — Madhya Pradesh Rs 74,420; Rajasthan Rs 1,13,865; Maharashtra Rs 82,085; Gujarat Rs 56,568; Odisha Rs 32,721; West Bengal Rs 26,452; Bihar Rs 23,534; Chhattisgarh Rs 21,443.

The Northeastern region, as a group, reported significantly lower debt levels, averaging just Rs 10,034, with Nagaland (Rs 1,750), Meghalaya (Rs 2,237) and Arunachal Pradesh (Rs 3,581) reflecting minimal reliance on credit. Similarly, Union Territories averaged at Rs 25,629.

The data signals a need for urgent reforms in agricultural credit policy, especially in high-debt states.