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Over 50% agricultural households in debt with average loan of Rs 74,000 in 2019: NSO survey

Over 50% agricultural households in debt with average loan of Rs 74,000 in 2019: NSO survey

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

 The NSO survey said the average monthly income per agricultural household during agricultural year 2018-19 was at Rs 10,218 The NSO survey said the average monthly income per agricultural household during agricultural year 2018-19 was at Rs 10,218

Over 50% 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).

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

Of the total loan, only 57.5% was taken for agricultural purposes, it added.
"Percentage of indebted agricultural households: 50.2%; and average amount of outstanding loan per agricultural household: Rs 74,121," it said.

Also Read: Farm loans worth Rs 4.7 lakh crore written off in past decade: report

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%, SC 15.9%, ST 14.2% and others 24.1%.

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

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

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

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

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

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

The 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% against 34% from non-institutional credit agencies.

In urban India, the share of outstanding cash debt from institutional credit agencies was 87% compared to 13% 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).

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