Rising NPAs in Bihar's Farming Sector: Threatening the Future

Bihar’s farming sector is nearing a critical juncture as rising Non-Performing Assets (NPAs) threaten its sustainability. Between FY 2021–22 and FY 2022–23, agricultural loan amounts surged from ₹57,249 crore to ₹74,533 crore, while NPA ratios, despite improvement (from 28.5 % to 21.5 %), remain alarmingly high. This study identifies structural, climatic, financial, and institutional constraints—such as fragmented landholdings, monsoon dependency, weak credit access, volatile markets, rising input costs, climate stress, policy delays, and socio-economic exclusion—as key drivers of this crisis. Utilizing secondary data from SLBC, Bihar Economic Survey, and government databases, the analysis aims to (1) pinpoint the root causes of NPAs in agriculture, (2) evaluate their impacts on farmers’ livelihoods, and (3) recommend actionable interventions to restore financial resilience and food security across rural Bihar.