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Rs 1 lakh crore of farm output at risk puts agricultural credit portfolios under scrutiny

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Rs 1 lakh crore of farm output at risk puts agricultural credit portfolios under scrutiny

Rs 1 lakh crore of farm output at risk puts agricultural credit portfolios under scrutiny

An estimated 1.35 crore hectares of seasonal cropped area could face production-equivalent impact across the two seasons, according to a scenario-based assessment by SBI Research. Potential production losses are estimated at 0.89 crore tonnes for Kharif and 2.97 crore tonnes for Rabi.

By replacing corporate subsidies with Direct Benefit Transfer, India can empower farmers, encourage organic agriculture, boost livestock production, and ensure efficient use of national funds.

An estimated 1.35 crore hectares of seasonal cropped area could face production-equivalent impact.

Tamil Nadu, Andhra Pradesh and Maharashtra have a combined Rs 75,919 crore of agricultural credit in districts classified as highly exposed.

Madhya Pradesh accounts for nine of the 20 most exposed Rabi districts, with significant vulnerabilities also identified in Maharashtra, West Bengal, Telangana and Andhra Pradesh.

SBI Research estimates a Rs 33,000 crore fiscal burden for five states and recommends farm loan restructuring over waivers, with state governments bearing part of the cost.

Agricultural production losses of approximately 3.86 crore tonnes across the Kharif and Rabi seasons could put the gross value of farm output worth around Rs 1 lakh crore at risk, highlighting the concentration of agricultural credit in districts vulnerable to rainfall deviations. An estimated 1.35 crore hectares of seasonal cropped area could face production-equivalent impact across the two seasons, according to a scenario-based assessment by SBI Research . Advt

The estimates are based on district-level Kharif and Rabi rainfall deviations and agricultural production data.


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