Punjab Farmers Hold Highest Average Debt per KCC in India

Punjab faces a significant burden with an average Kisan Credit Card debt of Rs 2.52 lakh, double the national average. The state's farmers owe a total of Rs 55,428 crores. Overall, India's farmers hold Rs 8.85 lakh crores in KCC loans which reflects the financial challenges in agriculture.

Punjab, a major food producer in India, has the highest average outstanding loan per Kisan Credit Card (KCC) holder in the country. As of March 31, 2023, the average debt per KCC beneficiary in Punjab was a staggering Rs 2.52 lakh, compared to the national average of Rs 1.20 lakh. This means that farmers in Punjab are burdened with significantly more debt than their counterparts in other states.

Overall, Punjab's agricultural families owe a total of Rs 55,428 crores to banks through KCC loans, with around 21.98 lakh farmers holding these cards. This debt burden is the highest in the country and exceeds the national average by more than double.

Interestingly, the Union Territory of Chandigarh boasts the highest average outstanding debt per KCC household at Rs 6.71 lakh, despite having only 1,475 beneficiaries.

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State	KCC Holders	Outstanding Loans	Per Farmer
Punjab	21.98 L	Rs 55,428 Cr	Rs 2.52 L
Haryana	22.86 L	Rs 50,045 Cr	Rs 2.18 L
Gujarat	30.18 L	Rs 62,391 Cr	Rs 2.06 L
Rajasthan	65.40 L	Rs 99,551 Cr	Rs 1.52 L
Andhra Pradesh	45.51 L	Rs 60,883 Cr	Rs 1.33 L
Madhya Pradesh	62.68 L	Rs 78,136 Cr	Rs 1.24 L
Karnataka	47.21 L	Rs 54,181 Cr	Rs 1.14 L
Tamil Nadu	35.80 L	Rs 42,143 Cr	Rs 1.17 L

These figures highlight the significant financial burden faced by farmers in India. The KCC scheme, introduced in 1998, aims to provide timely and affordable credit to farmers for their agricultural needs. However, the high levels of debt suggest that many farmers are struggling to repay their loans, which could have serious consequences for their livelihoods.

As per the data on KCC loans, Punjab bears a significant debt load of Rs 55,428 crores, spread across approximately 21.98 lakh farming families. This surpasses the national average of Rs 1.20 lakh per KCC holder. Following closely is Haryana, ranking second with a total outstanding debt of over Rs 50,045 crores for 22.86 lakh farmers, averaging Rs 2.18 lakh per farmer.

Gujarat takes the third spot, with an average debt of Rs 2.06 lakh among its 30.18 lakh KCC beneficiaries. Rajasthan comes in fourth place, hosting 65.40 lakh KCC holders and carrying an average debt of Rs 1.52 lakh per farmer. On the beneficiary front, Uttar Pradesh leads the pack with a whopping 1.07 crore KCC holders and a total outstanding amount of Rs 1.28 lakh crores.

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Union Minister for Agriculture and Farmers Welfare, Arjun Munda, revealed in a Lok Sabha response that there are around 7.34 crore active KCC holders, collectively owing Rs 8.85 lakh crores as of March 31.

Delving into the specifics of credit distribution to farmers from April 1, 2022, to March 31, substantial sums were allocated: Rs 16.76 lakh crore to commercial banks, Rs 2.36 lakh crore to cooperative banks, and Rs 2.42 lakh crore to Regional Rural Banks (RRBs). The overall disbursement during this timeframe totals a substantial Rs. 21.55 lakh crore.

Farmers have the opportunity to access short-term loans for farming and related activities, with the limit set at Rs 3 lakh at a reduced interest rate of 4% per annum, and for those who repay on time, there's an additional 3% Prompt Repayment Incentive (PRI).

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