Kozhikode: About 72 per cent of the farmers in Kerala are reeling under debt burden, finds a survey conducted by an independent farmers organisation – Kerala Independent Farmers Association (KIFA). The average debt of a farmer in Kerala has been estimated at Rs 5.46 lakh.
As per the national sample survey in 2019, the farm debt burden rate was 70 per cent and the average debt was Rs 2.42 lakh. While the KIFA survey indicates an increase of 2 per cent in debt burden and the average debt per farmer has more than doubled in 3 years.
Most farmers are in debt in the Malabar region: 77 per cent. While, 70 per cent of affected farmers are in the South region, 68 per cent are in Central Kerala. Most of the farmers burdened with debts are into cardamom, pineapple and dairy farming, the survey report says.
Forty-eight per cent of farmers have availed farm loans using Kisan credit cards at a 4 per cent interest rate. The survey also points out that the banks are reluctant to provide loans to the farmers under this scheme.
About 21 per cent of the farmers have relied on private financial institutions for loans. Fourteen per cent of the farmers, who had availed loans, have received bank attachment notices. Two per cent of farmers were subject to bank attachment proceedings.
The survey was conducted by considering 1,572 families as a sample. In the national sample survey conducted in 2019, 1,503 families from Kerala were considered as the sample.
The survey was conducted to help the Government take scientific and humane decisions in matters pertaining to farmers’ debt burden. The government must waive the interest and penal interest in such debts. The farmers must be given time to repay the principal amount. The Minimum Support Price for coconut, rubber and paddy must be increased urgently, said Alex Ozhukayil, the Chairman of KIFA.
