Telangana Has Lower Outstanding Crop Loans of Farmers Among Southern States

Hyderabad: Telangana has relatively lower outstanding crop loans for farmers compared to other southern states, with the total standing at Rs 1.75 lakh crore as of December 31, 2025, according to data tabled in Parliament on Monday.

The data revealed that Tamil Nadu recorded the highest outstanding agricultural loans among southern states, and also topped the country, with total loans amounting to Rs 5.06 lakh crore. Of this, crop loans accounted for Rs 1.65 lakh crore while term loans stood at Rs 3.41 lakh crore.

Telangana’s total outstanding agricultural loans stood at Rs 1,75,960.56 crore as of December 31, 2025. Of this, crop loans accounted for Rs 95,167.98 crore and term loans for Rs 80,792.58 crore. Officials noted that these outstanding loans were accumulated after December 9, 2023, the cut-off date for the crop loan waiver scheme, implemented by the Congress government in 2024.

The Telangana government had waived crop loans worth Rs 21,000 crore, benefiting about 25 lakh farmers, covering loans up to Rs 2 lakh each with a cut-off date of December 9, 2023.

Andhra Pradesh recorded the second-highest outstanding agricultural loans not only among southern states but also at the national level, with a total of Rs 3.75 lakh crore. In comparison, Karnataka reported outstanding agricultural loans of Rs 2.10 lakh crore, while Kerala had the lowest among southern states at Rs 1.61 lakh crore.

Replying in writing to questions in the Lok Sabha, Union minister of state for finance Pankaj Chaudhary said the data was based on information reported by the National Bank for Agriculture and Rural Development (Nabard) on ground-level credit flow to agriculture as of December 31, 2025.

He also cited the Nabard All India Rural Financial Inclusion Survey (NAFIS) 2021–22, which found that about 55 per cent of agricultural households in the country had availed credit facilities. The survey noted that farmers typically take loans to meet capital expenditure, working capital requirements and other expenses related to sustaining and expanding agricultural operations.

The minister said the Centre had taken several steps to promote institutional credit among rural households. These include fixing annual targets for ground-level agricultural credit, priority sector lending targets for banks, and improving access to affordable credit through schemes such as the Kisan Credit Card and the Modified Interest Subvention Scheme.

He said the government was also implementing long-term measures aimed at economically empowering farmers, including the Pradhan Mantri Kisan Samman Nidhi, Pradhan Mantri Fasal Bima Yojana, Krishonnati Yojana and the Rashtriya Krishi Vikas Yojana.