MP farmers owe ₹14,563 crore:₹2,655 crore pending in Khargone alone; loan imbalance rises by 67% in 5 years

MP’s Mohan government is celebrating this year as Farmers’ Welfare Year. On the other hand, the financial health equation between farmers and cooperative institutions in Madhya Pradesh has completely deteriorated. The figures presented by the Cooperative Department in response to a question by MLA Jaivardhan Singh during the budget session of the assembly are shocking. Farmers in the state owe thousands of crores of rupees to Primary Agricultural Credit Societies (PACS). In the last 5 years, the ‘loan imbalance’ situation in District Cooperative Central Banks has worsened by 67%. According to government data presented in the assembly, the imbalance, which was 4,125.20 crore in 2021, has increased to over 6,890.10 crore by the financial year 2025. The State’s Biggest ‘Debtor’ District: Khargone According to official data, Khargone district ranks number one in the state in terms of debt. Farmers here owe a total of 2,655.80 crore to PACS societies. Not only this, the District Cooperative Bank also has an outstanding agricultural loan of 2,855.66 crore from these societies. Top-5 Districts: Where Farmers Have the Highest Outstanding Dues (Figures in crore rupees, as of June 30, 2025) Loan Imbalance increased by 67% in 5 years, a threat to the cooperative structure The government has admitted that the ‘loan imbalance’ situation in the district cooperative banks of the state has become dire. The imbalance, which was 4,125.20 crore in 2021, increased to 6,890.10 crore in 2025. This increase indicates that money went from banks to societies and from societies to farmers, but its recovery was not as expected. Banks with the Worst Loan Imbalance (in Crores): Hoshangabad (Narmadapuram): 508.44 crore Rajgarh: 508.16 crore Ujjain: 444.42 crore Chhindwara: 295.82 crore Condition of Capital Bhopal: ?336 crore outstanding on societies District Bank has an outstanding amount of 336.43 crore on 34 societies in Bhopal district, while farmers in the district owe these societies 409.23 crore. Nazirabad (25.77 crore) and Bagasi (24.29 crore) are the largest debtor societies in the district. Loan Imbalance situation across the state Based on the audit report presented by the government, the total loan imbalance in the state has rapidly increased over the past 5 years Loan Imbalance: What is it understand here Loan imbalance means the difference that arises when the loan given by the District Cooperative Bank to societies (PACS) exceeds the loan given by those societies to farmers. Understand this with an example: If the bank gave 100 to the society, but the society distributed only 80 to the farmers, then that 20 difference is called ‘loan imbalance’. This situation indicates that the money released from the bank is either stuck with the societies or its accounts are not correct