“Yes, Sir,” replied Kanti Lal Bhuria, minister of state for agriculture, in Parliament recently, to a question on “whether indebtedness of farmers is rising day-by-day.”

Although indebtedness has increased as compared to 1991, 65% of the loans were for productive purposes such as current and capital expenditure on the farm, and non-farm businesses. This is comparable to 1971 (54%) and 1981 (72%) levels of borrowing for productive purposes, whereas in 1991 this figure was only 24%.

Agriculture is an enterprise like any other and needs capital inputs; therefore, increased borrowing for productive purposes is a healthy trend. Meanwhile, the government is of a different view having constituted a committee to “look into the problems of agricultural indebtedness” and “suggest measures for providing relief to farmers across the country.” All the while setting increasing targets for agriculture credit disbursement (Rs 2,25,000 crore for 2007-08, up 29% from last year).

Yes, Sir, the farmer only wanted to buy a tractor!