Debt and kisan households
For the 21 larger states, this is the picture of how much average debt a cultivator household has incurred, and how many amongst cultivator households are in debt.
The data I have used for this chart are taken from the report, ‘Household Indebtedness in India’, which is based on the 70th Round of the National Sample Survey Office (NSSO), Ministry of Statistics and Programme Implementation, Government of India, and collected during January to December 2013.
The states are plotted on average debt of such households, in lakh rupees on the left scale, and the proportion of such households, as a percentage of all such households, on the horizontal scale. The size of the circles are relative and based on the amount of average debt.
The average amount of debt per cultivator household seen in this chart is for most of the 21 larger states, lower than the overall rural household average debt of Rs 1,03,457. However the cultivator household is one of six types of rural household (the categories are: self-employed in agriculture, self-employed in non-agriculture, regular wage/salary earning, casual labour in agriculture, casual labour in non-agriculture, others). About 31.4% of all rural households are in debt.
The chart shows that cultivator households in Punjab and Kerala carry the highest amounts of debt, and that a highest percentage of cultivator households carrying debt are in Telengana and Andhra Pradesh. There are two distinct groups. One group of nine states occupies the right and most of the vertical area of the chart. The second group is of 12 states clustered towards the lower left corner of the chart panel.
This difference describes regional variation. In the first group are all the southern states. In the second are all the eastern and central states. Madhya Pradesh, Gujarat, Uttar Pradesh and Uttarakhand cultivator households exhibit the greatest similarity, with average debt of under Rs 40,000 and with less than 35% of cultivator households carrying debt.
Bihar, West Bengal and Odisha are likewise similar, their average debt being less than Rs 20,000. Assam, Jammu and Kashmir, Chhattisgarh and Jharkhand cultivator households bear the lowest average debt and less than one in five of such households is in debt.
These are the broad brush strokes of debt amongst cultivator households in the 21 major states painted by the NSSO’s ‘Household Indebtedness in India’ report. A more detailed examination of such debt, and also the debt of the other kinds of rural households, will give us a deeper understanding of the subject.