Representative Image.
Credit: PTI Photo
Farmers in Karnataka had a combined debt outstanding of Rs 1.81 lakh crore as of June 30 this year, according to data tabled by the Union Finance Ministry in Lok Sabha on Monday.
This is the third highest among all the states. The two states with the highest agriculture loans outstanding were Tamil Nadu (Rs 3.47 lakh crore) and Andhra Pradesh (Rs 2.43 lakh crore). These two states also topped the list of rural accounts against which the loans are outstanding.
The data was part of a written reply by Minister of State for Finance Bhagwat Karad on whether the Centre is considering any proposal for a loan waiver of farmers. "No such proposal is currently under consideration," the reply stated.
The data pertains to formal lines of credit from scheduled commercial banks, cooperative banks and regional rural banks. There was no data shared on what percentage, if any, of these loans were written off as non-performing assets.
While outstanding loans of corporates is seen as a politically loaded topic in India, the central and state governments view agriculture loans outstanding as a healthy barometer for the rural economy. This means that the banking system and lines of credit are working well in rural India, and that farmers are taking on loans to expand their crop or livestock productivity.