ALARMING! Over 50% farmers' families in debt with average loan of Rs 74,121 in 2019, only 57.5 % loan taken for agricultural purposes : NSO Survey

Over 50 per cent of agricultural households in the country were in debt with average outstanding loan per household at Rs 74,121 in 2019, says a survey conducted by National Statistical Office (NSO). 

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The survey further points out that only 69.6 per cent of the outstanding loans were taken from institutional sources like banks, cooperative societies and government agencies, while 20.5 per cent of loans were from professional money lenders.  

Of the total loan, only 57.5 per cent was taken for agricultural purposes, it added.  

"Percentage of indebted agricultural households:50.2 per cent; and average amount of outstanding loan per agricultural household: Rs. 74,121," it said.  

NSO carried out the survey on land and livestock holdings of households and situation assessment of agricultural households in rural areas of the country during January-December 2019. 

The survey further said the average monthly income per agricultural household during agricultural year 2018-19 was at Rs 10,218. Of this, the average income per household from wages was Rs 4,063, crop production Rs 3,798, animal husbandry Rs 1,582, non-farm business Rs 641 and leasing of land Rs 134. 

According to the survey, the number of agricultural households in the country was estimated at 9.3 crore with OBCs accounting for 45.8 per cent, SC 15.9 per cent, ST 14.2 per cent and others 24.1 per cent.  

The survey estimates non-agricultural households living in rural areas at 7.93 crore. It also revealed that as much as 83.5 per cent of rural households had less than 1 hectare of land, while only 0.2 per cent possessed land in excess of 10 hectare.  

Meanwhile in another report, NSO stated that the incidence of indebtedness was about 35 per cent in rural India (40.3 per cent cultivator households, 28.2 per cent non-cultivator households) compared to 22.4 per cent in urban India (27.5 per cent self-employed households, 20.6 per cent other households) as of June 30, 2018.  

NSO conducted the latest survey -- All India Debt & Investment Survey-- during the period January-December, 2019 as a part of 77th round of National Sample Survey (NSS).  

Prior to this, the survey was carried out in NSS 26th round (1971-72), 37th round (1981-82), 48th round (1992), 59th round (2003) and 70th round (2013).  

The report also found that in rural India, 17.8 per cent households were indebted to institutional credit agencies only (21.2 per cent cultivator households, 13.5 per cent non-cultivator households) against 14.5 per cent households in Urban India (18 per cent self-employed households, 13.3 per cent other households).  

About 10.2 per cent of the households were indebted to non-institutional credit agencies only in rural India compared to 4.9 per cent households in urban India, it added.  

About 7 per cent of the households were indebted to both institutional credit agencies and non-institutional credit agencies in rural India against 3 per cent households in urban India.  

It also said that as of June 30, 2018, average amount of debt was Rs 59,748 among rural households (Rs 74,460 for cultivator households, Rs 40,432 for non-cultivator households).  

Average amount of debt was Rs 1,20,336 among urban households.  

In rural India, the share of outstanding cash debt from institutional credit agencies was 66 per cent against 34 per cent from non-institutional credit agencies.  

In urban India, the share of outstanding cash debt from institutional credit agencies was 87 per cent compared to 13 per cent from non-institutional credit agencies.  

As of June 30, 2018, the average amount of debt was Rs 1,70,533 among indebted households in rural India (Rs 1,84,903 for cultivator households, Rs 1,43,557 for non-cultivator households).  

Average amount of debt was Rs 5,36,861 among indebted households in urban India, it stated.