Telangana and Andhra farmers are most debt ridden: Report

Telangana state and Andhra Pradesh have the highest rates of rural indebtedness in the country, according to the Household Indebtedness in India report released by the Union ministry of statistics and programme implementation.

Telangana and Andhra farmers are most debt ridden: Report

Telangana state and Andhra Pradesh have the highest rates of rural indebtedness in the country, according to the Household Indebtedness in India report released by the Union ministry of statistics and programme implementation.

As much as 59% of the households in Telangana and 54% in Andhra Pradesh are facing debts, says the report. These rates are higher than national average of 31.4 per cent.

Rural indebtedness among cultivators is also the highest in Telangana and Andhra Pradesh, and they stood at 69% and 63% respectively, reports Deccan Chronicle.


Reach of institutional credit in both states is reported to be less than 50%, which means a large percentage of people are taking loans through non-institutional sources, which might be charging higher rates of interest than institutional sources like banks.

The fact that Telangana state had the second and AP the fourth highest farmer suicides in India, as per the National Crime Record Bureau 2014-15 data could be attributed to the high indebtedness and lack of access to institutional credit among cultivators.

The average value of assets owned by households in rural areas in AP and Telangana are very low as compared to those in other states, including Telangana. Average Value of Assets per rural household in AP stands at Rs 4,11,939, the third lowest in the country and Telangana the ninth lowest at Rs 6,37,509.

While AP tops in Debt-Asset Ratio (DAR) at 14%, Telangana state even though ninth in owning assets, comes second in DAR with 8%. This means that, in both the states, rural households are borrowing much higher amount of loans in proportion to the assets they owned