Punjab ranks third nationally with an average debt of Rs 2.03 lakh per agricultural household, followed closely by Haryana at Rs 1.83 lakh.

The Debt Trap: Punjab and Haryana Rank Among India’s Top 5 Most Agri Indebted States

Farmers in Punjab and Haryana, the primary contributors to India’s food security, face some of the highest debt levels in the nation. According to data provided by Agriculture Minister Shivraj Singh Chouhan in the Lok Sabha, Punjab ranks third nationally with an average debt of Rs 2.03 lakh per agricultural household, followed closely by Haryana at Rs 1.83 lakh.

Only Andhra Pradesh (Rs 2.45 lakh) and Kerala (Rs 2.42 lakh) reported higher debt per farm family. These figures significantly exceed the national average of Rs 74,121. In contrast, states like Nagaland, Meghalaya, and Arunachal Pradesh reported the lowest burdens, with Nagaland at just Rs 1,750 per family. Within the northern region, Rajasthan stands at Rs 1.13 lakh, Himachal Pradesh at Rs 85,825, and Jammu and Kashmir at Rs 30,435.

Moderate debt levels were observed across the Hindi Belt, including Uttar Pradesh (Rs 51,107) and Bihar (Rs 23,534). The data originated from a situational assessment survey by the National Statistical Office. 

Experts attribute this persistent credit dependency to several critical factors: escalating input costs, stagnant farmer incomes, and unpredictable weather patterns. Other contributing issues include delays in crop procurement payments, small landholding sizes, high illiteracy rates, and significant spending on social ceremonies. The findings highlight a deep-rooted financial vulnerability within India’s most productive agricultural regions.

Source: The Tribune