New data tabled in Parliament reveals a significant burden of institutional farm debt on the agricultural heartlands of North India. While both Haryana and Punjab have staggering agricultural loans outstanding, Haryana has now edged past its neighbour in the total amount owed by its farmers to formal credit institutions.
The State-Wise Debt Picture
According to figures presented by Union Minister of State for Finance Pankaj Chaudhary in a written reply to the Rajya Sabha on Tuesday, the situation is critical. As of September 30, 2025, Haryana's agricultural credit outstanding stands at a massive Rs 1,00,013 crore. This debt is spread across 36.63 lakh farmer accounts in the state.
In comparison, Punjab, often seen as the epicentre of farm prosperity and distress, has a slightly lower total. The institutional farm loan burden in Punjab is Rs 97,471 crore, distributed among 25.23 lakh accounts. This indicates that while the total sum is marginally lower, the average debt per account could be higher in Punjab given the smaller number of accounts.
The National Landscape of Farm Debt
The minister's reply provided a pan-India view of the agricultural credit scenario. The total outstanding institutional credit for agriculture across the country is an eye-watering Rs 31,36,429 crore. This colossal sum is linked to a staggering 1,742.05 lakh (over 17.4 crore) accounts nationwide.
Surpassing both northern states, Tamil Nadu leads the country with the maximum agricultural credit outstanding. The southern state has Rs 4,94,845 crore in loans against 256.36 lakh accounts, highlighting the extensive reliance on formal credit in its agrarian sector.
Government Measures and the Waiver Question
Citing the NABARD All India Rural Financial Inclusion Survey (NAFIS) 2021-22 report, the minister noted that 55% of agricultural households in India avail of credit facilities. This credit is primarily used to meet capital expenditure, working capital needs, and other operational costs essential for sustaining and growing their farms.
The government outlined several steps to promote institutional credit among rural households. These include:
- Annual fixing of ground-level agriculture credit targets for banks.
- Priority sector lending targets for banks.
- Providing access to affordable credit through the Kisan Credit Card (KCC) and the Modified Interest Subvention Scheme (MISS).
Furthermore, the Centre stated it has implemented structured long-term measures aimed at economically empowering farmers. However, in a clear statement that will impact farmer unions' demands, the minister explicitly stated that no proposal to waive farm loans is currently under consideration by the government.
The data underscores the deep financial entanglement of India's farming community with institutional debt. While credit is a vital tool for agricultural operations, the scale of outstanding loans in states like Haryana, Punjab, and Tamil Nadu points to a persistent cycle of debt that long-term empowerment measures are yet to break.
