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Farmers’ debt on the rise

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farmers' debt in andhra pradesh

Despite the fact that agriculture accounts for 37.27 percent of Andhra Pradesh’s gross value-added, which is nearly double the national level of 19.7 percent, AP ranks third in the country in terms of farmer suicides, as per a report released by the National Crime Records Bureau (NCRB) for the year 2019.

A key reason behind farmer suicides in Andhra Pradesh just like in most parts of India is farmers’ inability to pay their debt, falling yield and lack of adherence to MSP guidelines. The previous TDP government in 2014 announced a debt waiver for farm loans up to Rs. 1.5 lakh per farmer to potentially benefit 58.29 lakh farmers across Andhra Pradesh. The aggregate loan waiver package was Rs. 24,500 crores and was being implemented in a phased manner. Between 2015-18, close to Rs. 16,500 crores had been waived under 3 phases. For the final phase G.O. No. 38 was issued to release Rs. 7,959.12 crores. The TDP government had decided to pay the pending amount along with 10% interest.

With the Model Code of Conduct in force owing to the 2019 elections, this amount was not released. The YSRCP government released a new G.O. No. 99 on 25 September 2019 scrapping G.O. No. 38 and decided not to pay the amount thereby rendering injustice to the farmers of Andhra Pradesh

According to Union Finance Minister Bhagwat Kard’s written response to a question posed by Congress MP S Jyotimani in the Lok Sabha on July 26, 2021, as of 31 March  202, farmers in India have a total outstanding loan of 16.80 lakh crores while farmers in Andhra Pradesh had a total overdue loan amount of 1.69 lakh crore in over 12 lakh farmer accounts that must be repaid to banks. The Union Government has further clarified that there is no proposal under consideration to waive off farm loans. 

The YSRC Party has come into power has further made multiple false promises to the farmers and peddled fake narratives and their party chief Jagan Mohan Reddy in various instances pointed out that his Government is pro-farmer but, however, the ground reality is far from different.

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