Telangana Has Lower Outstanding Crop Loans Compared to Other Southern States
Table of Contents
Relevance: Paper – IV: Economy and Development
For Prelims:
- Outstanding Agricultural Loans, Crop Loans, Term Loans, Telangana Crop Loan Waiver Scheme (2024), National Bank for Agriculture and Rural Development (NABARD), Ground-Level Credit Flow to Agriculture, NABARD All India Rural Financial Inclusion Survey (NAFIS) 2021–22, Kisan Credit Card (KCC).
For Mains:
- Agricultural Credit System in India, Institutional Credit for Farmers, Crop Loan Waiver Policy, Rural Financial Inclusion, Priority Sector Lending, Agricultural Investment and Working Capital Needs, Farmer Financial Security, Government Schemes for Farmer Welfare.
Why in News?
Agricultural Credit System in India, Institutional Credit for Farmers, Crop Loan Waiver Policy, Rural Financial Inclusion, Priority Sector Lending, Agricultural Investment and Working Capital Needs, Farmer Financial Security, Government Schemes for Farmer Welfare.
Outstanding Agricultural Loans in Southern States
- Tamil Nadu recorded the highest outstanding agricultural loans among southern states and also topped the country with ₹5.06 lakh crore.
- Crop loans: ₹1.65 lakh crore
- Term loans: ₹3.41 lakh crore
- Andhra Pradesh recorded the second-highest agricultural loans with ₹3.75 lakh crore.
- Karnataka reported agricultural loans amounting to ₹2.10 lakh crore.
- Kerala recorded the lowest outstanding agricultural loans among southern states at ₹1.61 lakh crore.
Outstanding Agricultural Loans in Telangana
Telangana’s total outstanding agricultural loans stood at ₹1,75,960.56 crore.
- Crop loans: ₹95,167.98 crore
- Term loans: ₹80,792.58 crore
Officials stated that these loans accumulated after December 9, 2023, which was the cut-off date for the crop loan waiver scheme implemented in 2024.
Telangana Crop Loan Waiver Scheme (2024)
The Telangana government implemented a crop loan waiver scheme to reduce farmers’ financial burden.
Key features include:
- Total loan waiver: ₹21,000 crore
- Beneficiaries: Around 25 lakh farmers
- Loan coverage: Up to ₹2 lakh per farmer
- Cut-off date: December 9, 2023
The scheme aimed to provide relief to farmers and improve their access to agricultural credit.
Agricultural Credit Trends in India
According to the NABARD All India Rural Financial Inclusion Survey (NAFIS) 2021–22:
- Around 55% of agricultural households in India have accessed credit facilities.
Farmers generally take loans for:
- Capital investment in agriculture
- Working capital requirements
- Purchase of agricultural inputs
- Expansion of farming operations
Government Measures to Promote Agricultural Credit
The Union government has taken several initiatives to improve access to institutional credit for farmers.
These include:
- Fixing annual targets for ground-level agricultural credit
- Setting priority sector lending targets for banks
- Expanding affordable credit access through:
- Kisan Credit Card (KCC)
- Modified Interest Subvention Scheme
The government is also implementing long-term measures to strengthen farmers’ economic security through schemes such as:
- Pradhan Mantri Kisan Samman Nidhi (PM-KISAN)
- Pradhan Mantri Fasal Bima Yojana (PMFBY)
- Krishonnati Yojana
- Rashtriya Krishi Vikas Yojana (RKVY)
Conclusion
The parliamentary data indicates that Telangana has comparatively lower outstanding crop loans among southern states, partly due to policy measures such as the crop loan waiver scheme. However, institutional agricultural credit remains essential for supporting farmers’ investments, sustaining agricultural operations, and promoting rural economic growth.
CARE MCQ
Q. Consider the following statements regarding the PM-KISAN Scheme:
- PM-KISAN is a Central Sector Scheme fully funded by the Government of India.
- The scheme provides ₹6,000 per year to all farmers including landless agricultural labourers.
- The identification of beneficiary farmer families is done by the State Governments and UT administrations.
Which of the statements given above is/are correct?
- 1 and 3 only
- 2 and 3 only
- 1 and 2 only
- 1, 2 and 3
Answer: A
Explanation
- Statement 1 is correct: PM-KISAN is a Central Sector Scheme with 100% funding from the Government of India.
- Statement 2 is incorrect: The scheme is meant for landholding farmer families only; landless agricultural labourers are not eligible.
- Statement 3 is correct: State Governments and UT administrations identify the beneficiaries based on land records.
