Over 50 percent of the country’s agricultural households had a debt with an average outstanding household loan of Rs 74,121 in 2019, according to a survey conducted by the National Bureau of Statistics (NSO).
The research further points out that only 69.6 percent of outstanding loans were taken from institutional sources such as banks, cooperatives and government agencies, while 20.5 percent of loans were from professional money lenders.
Of the total loan, only 57.5 per cent was taken for agricultural purposes, it added.
“Percentage of indebted agricultural households: 50.2 percent; and average outstanding loan per agricultural household: Rs 74,121,” it said.
The NSO conducted a survey on land and livestock farms and an assessment of the condition of agricultural households in rural areas of the country during January-December 2019.
The research further states that the average monthly income per agricultural household during the agricultural year 2018-19. It amounted to 10,218 rupees. Of that, the average household income from wages was 4,063, crop production 3,798, livestock 1,582, non – agricultural work 641 and land rent 134.
According to the survey, the number of agricultural households in the country is estimated at HRK 9.3 million, with OBCs accounting for 45.8 per cent, SCs 15.9 per cent, STs 14.2 per cent and others 24.1 per cent.
The survey estimates non-agricultural households living in rural areas at 7.93 crore. It was also found that as many as 83.5 percent of rural households own less than 1 hectare of land, while only 0.2 percent own land larger than 10 hectares.
Meanwhile, in another report, the NSO stated that the borrowing rate is about 35 percent in rural India (40.3 percent of breeder households, 28.2 percent of non-farming households) compared to 22.4 percent in urban India ( 27.5 percent of self-employed households, 20.6% of other households) as of June 30, 2018.
The NSO conducted the latest survey — the All India Debt & Investment Survey — during the January-December 2019 period as part of the 77th round of the National Sample Survey (NSS).
Prior to that, the research was conducted in the NSS Round 26 (1971-72), Round 37 (1981-82), Round 48 (1992), Round 59 (2003) and Round 70 (2013). ).
The report also found that in rural India, 17.8 percent of households owed only to institutional credit agencies (21.2 percent of cultivator households, 13.5 percent of non-cultivators) versus 14.5 percent of households in urban India (18 percent of self-employed households, 13, 3% other households).
About 10.2 per cent of households are indebted to non-institutional credit agencies in rural India alone, compared to 4.9 per cent of households in urban India, it added.
About 7 percent of households owed to institutional credit agencies and non-institutional credit agencies in rural India, as opposed to 3 percent of households in urban India.
It was also stated that on 30 June 2018, the average amount of debt was Rs 59,748 among rural households (Rs 74,460 for households with cultivators, Rs 40,432 for non-cultivated 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 percent versus 34 percent from non-institutional credit agencies.
In urban India, the share of outstanding cash debt from institutional credit agencies was 87 percent compared to 13 percent from non-institutional credit agencies.
The average amount of debt was Rs 1.70,533 on 30 June 2018 among indebted households in rural India (Rs 1.84,903 Rs for households with cultivators, Rs 1.43,557 Rs for non-cultivated households).
The average amount of debt was Rs 5,36,861 among indebted households in urban India, it is stated.
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