Lok Sabha data shows Green Revolution states far above national average; KCC dues touch ₹10.39 lakh crore

CHANDIGARH: India’s agriculture sector is facing mounting financial stress, with farmers in key agrarian states such as Andhra Pradesh, Kerala, Punjab, Haryana and Telangana carrying some of the highest debt burdens in the country, even as policymakers highlight record foodgrain production and expanded institutional credit outreach.

Amid the growing concerns being express by the farmers and agriculture experts of duty-free agri-imports from US, a latest data tabled in the Lok Sabha by the union agriculture minister Shivraj Chouhan revealed that besides Andhra Pradesh and Kerala, country’s leading agrarian states Punjab and Haryana- rank among the top four states in terms of average outstanding loan per agricultural household.

According to the official response to a question the minister’s reply mentioned that the average outstanding loan per agricultural household stands at ₹2,03,249 in Punjab and ₹1,82,922 in Haryana. This places Punjab third and Haryana fourth nationally, far above the all-India average of ₹74,121 per agricultural household. Only Andhra Pradesh, with ₹2,45,554, and Kerala, with ₹2,42,482, report higher average debt burdens than Punjab.

The data is based on the “Situation Assessment Survey (SAS) of Agricultural Households” conducted by the National Statistical Office during 2018–19, and it highlights sharp regional disparities in rural indebtedness. Whereas the several northeastern states report negligible levels of farm debt. Nagaland’s average outstanding loan per agricultural household is ₹1,750, Meghalaya’s ₹2,237 and Arunachal Pradesh’s ₹3,581. The grouped average for northeastern states stands at just ₹10,034, underscoring the wide gap in rural credit exposure across regions.

Other major agrarian states also show significant per-household borrowings. Telangana reports ₹1,52,113, Karnataka ₹1,26,240, Tamil Nadu ₹1,06,553 and Rajasthan ₹1,13,865. Meanwhile, large Hindi heartland states such as Uttar Pradesh, at ₹51,107, and Bihar, at ₹23,534, remain well below the national average.

The government further informed Parliament that as of September 30 last year the outstanding amount under the Kisan Credit Card (KCC) scheme has reached ₹10.39 lakh crore. The KCC scheme has long been projected as a key instrument for ensuring timely and affordable institutional credit to farmers. However, the magnitude of outstanding dues reflects the scale of dependence on borrowed capital within the agricultural economy. The Ministry also clarified that since the last survey of agricultural households was conducted in 2019, updated figures as of February 1, 2026 are not available.

The agriculture experts have expressed concerns over the rising debt on the farmers  saying Punjab and Haryana once celebrated as the pillars of the Green Revolution, adopted highly input-intensive farming systems focused largely on wheat and paddy cultivation. “Rising input costs — including seeds, fertilisers, pesticides and diesel — have steadily squeezed margins. Farm incomes have largely stagnated, landholdings have become increasingly fragmented, and dependence on MSP-backed procurement remains high. Climate variability, erratic rainfall and rising household expenditures have further intensified financial pressure”, said farmer leader Ratan Mann.

Over time, easy access to institutional credit has supported productivity, but it has also normalised borrowing as a survival mechanism. For many farm households, loans are no longer confined to crop investment but extend to daily expenses, social obligations and unforeseen contingencies.

Experts argue that while digital agriculture reforms, geo-referenced crop surveys and direct benefit transfers may improve delivery systems as the credit expansion alone cannot resolve deep-rooted farm distress.  

The top five states with the highest average outstanding loan per agricultural household are as follows:

Source: NSS Report No. 587 – Situation Assessment of Agricultural Households (2019), tabled in Lok Sabha.