AIEFS NEWSLETTER

AIEFS is a non-profit academic organization founded in 1975 at Bloomsburg State University, Pennsylvania

Volume 6 Issue1 Association Objectives Promote interest in the study of Indian Economics & Finance Encourage inquiry into, and analysis of the problems facing the Indian economy Facilitate communication and discussion among Scholars

April 10, 2013

Table of Contents 1. Farmers suicides and crisis in Indian agriculture by Srijit Misra 2. Story of Indira Gandhi Institute of Development Research (IGIDR) 3. AIEFS 2013 Biennials Call of Papers 4. AIEFS-ASSA 2014 Meetings Call for Papers 5. AIEFS Membership Form 6. About AIEFS

Executive Committee 2011-2013 President

Amitrajeet Batabyal
Rochester Inst. of Technology

Executive Director
Kusum W. Ketkar Assistant Executive Director Chandana Chakraborty Montclair State University Assistant Executive Director Meenakshi Rishi Seattle University

Treasurer
Artatrana Ratha St. Cloud University

However, in the
Elected Members Chandana Chakraborty Montclair State University Atrayee Ghosh Roy Minnesota State University Sushanta Mallick Queen Mary Univ. London Roby Rajan University of Wisconsin Neha Khanna Binghamton University Kalyan Chakraborty Emporia State University

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Program Chair & Newsletter

Kusum Ketkar

Volume 6 Issue 1, April 10, 2013

Farmers suicides and crisis in Indian agriculture1 Srijit Mishra Indira Gandhi Institute of Development Research (IGIDR) srijit@igidr.ac.in
Nearly a quarter million farmers suicides have been recorded in India in the las t 15 years, ie 45 farmer suicides per day. The suicide mortality rate (SMR, suicide deaths per 100,000 persons) of male farmers has been greater than that of male non-farmers (see Figure 1). The SMR for male farmers peaked to 19.2 (almost 40 per cent higher than that of non-farmers) in 2004. Subsequently, it has been declining (except for 2009, a drought year) and is to be at 16.1 in 2011. Despite the continuing high incidences of farmers suicides, the declining trend gives a hope that the farm sector is perhaps getting back and other data also show that the farm sector was doing relatively well in recent years.
Figure 1 Trends in Suicide Mortality Rate of Male Farmers and Male Non-farmers in India, 1997-2011
19.5 18.5 17.5 16.5 15.5 14.5 13.5 12.5

2009

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2010

Male Farmers

Male Non-farmers

Source: Calculated using a method described in an earlier work by the author using data from the National Crime Records Bureau and Census of India.

This write-up is based on related recent work that the author has been associated with.

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AIEFS Contact: Kusum Ketkar, 15 Dorset Lane, Short Hills, NJ 07078 Phone: (973)-912-8960, kwketkar@hotmail.com

Volume 6 Issue 1, April 10, 2013

While acknowledging, the relatively better performance of agriculture in recent years, the decline in the incidence of farmers suicides is also because of the reporting of farmer suicides in some other category that led to recording zero farmers suicides in the state of Chattishgarh, which had been reporting more than 1,000 farmers suicides per annum prior to 2011. Then, of course, there is the overall underreporting of suicides because of social stigma and the fact that suicide continues to be criminal offence under the statute books of the Indian Penal Code. Keeping aside our apprehension on data for a different exercise, SMR for male farmers in 2011 are 290 for Kerala, 49 for Maharashtra, 42 for Andhra Pradesh 42, and 37 for Karnataka and more than three-fifths of the farmers suicides in the year were reported from these four states. Following the classic work of Durkheim on suicides almost a hundred years ago, it goes without saying that a high incidence of suicides among a particular sub-group of population is indicative of a socio-economic problem. Of course, its absence does not deny the absence of a crisis among farmers in other regions/states of the crisis. The crisis in Indian agriculture is pervasive and much more spread out than the spread of famers suicides. Besides farmers distress, the social crisis is observed in food and nutrition insecurity, social conflicts such as the bodily integrity of females and that has also taken the form of extremism in some parts of the country among others. The economic crisis in agriculture is said to be on account of technology fatigue, stagnating productivity, declining fertilizer use efficiency, low growth with high input usage, subsidies surpassing investments, and increasing cost of cultivation. To add to it there is the ecological crisis reflected through soil degradation, falling water tables, destruction of friendly predators and parasites, biomass loss in commons, and increasing risks from climate change. This crisis is as much because of inadequate and inappropriate planning as much it is because of an emphasis on means rather than ends. To address this crisis, as indicated earlier, the government has responded with a number of programmes. The major response was to expand the green revolution areas beyond the irrigated areas to other areas that are largely rainfed. This comes with the assumption that the technology and science meant for irrigated water abundant areas should be transferable to other areas. The current response, unfortunately, is suggesting more of the same which has already brought about the crisis.

AIEFS Contact: Kusum Ketkar, 15 Dorset Lane, Short Hills, NJ 07078 Phone: (973)-912-8960, kwketkar@hotmail.com

Volume 6 Issue 1, April 10, 2013

Further, such an argument stems from the perspective of making food available at a macro level and it is this that subsumes the issues of accessibility and affordability to the public distribution system and not by strengthening the local production system, but by imposing a production system that is largely mono-cropping in nature. This also compromises the risk taking ability inherent in a system that thrives on diversity and mutual dependence. For instance, a good foliage cover will provide fodder for livestock, who in turn will provide manure to the soil that in turn will help the plan grow. Similarly, cultivation of multiple crops could also mean that all the crops need not be vulnerable to a particular unforeseen climatic fluctuation, but it could have adverse implications in a mono-cropping system. A very nice initiative of the Government of India is Rashtriya Krishi Vikash Yojana initiated since the 11th Five Year Plan. The logic behind this initiative is that the planning from agriculture should start from the village level to block, then district, state and nation. In short, it should be bottom-up, and, I would say a novel initiative. But, the problem is that this initiative also comes with a message from the Prime Minister that we should be able to achieve 4 per cent per annum growth in agriculture. In real terms, this means that there should be production growth. Independent, of the fact that this is impossible and not even required because our population growth is about 1.6 per cent per annum. What is more, this imposition from top comes with a plan that moves from state to district to the village. So, we have a bottom-up thinking being implemented through a top-down structure. This topdown structure is entrenched in many of our institutions. Scientists and technocrats, more often than not working in silos, would come up with input that is to be the input the farmer will use. The agricultural administration facilitates the provisioning of these inputs that are largely tied through some subsidy schemes. This top-down structure unfortunately means that generation and dissemination of knowledge is a one-way process. The farmers become passive recipients and are not active participants in the process. Another much talked about initiative is the farm debt waiver of 70,000 INR in 2008 (17.5 billion USD; the approximate exchange rate then is 1 USD=40 INR). Now, of course it is a fiscal decision and government in many parts of the world have been taking such decisions and I would leave it at that. However, it needs to be mentioned that this is book-keeping exercise that helped the banks do away with their non-performing assets. For the farmers who benefitted (there are many who didnt), it would reduce the mental burden and also make them eligible for fresh
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AIEFS Contact: Kusum Ketkar, 15 Dorset Lane, Short Hills, NJ 07078 Phone: (973)-912-8960, kwketkar@hotmail.com

Volume 6 Issue 1, April 10, 2013

loans. It is the fresh loans that would help them get back to the agricultural activities. However, the market-dependent input-intensive production where rate of increase in cost is greater than net returns debt-servicing would be a casualty, particularly in bad years. This also increases the risks in the agricultural production process. Many a times proponents of the input-intensive argument would suggest that the criticisms are well taken, but there is no alternative, TINA. This is not correct. Actually, like the mother earth, multiple alternatives exist, MAE. The alternatives focus on diverse and integrated production systems that are better adapted to climatic variability and take into consideration the local specificities. It needs to be mentioned that the alternative being proposed is not a blind call to tradition. It does borrow some of the positive aspects from tradition, but it is based on science and is knowledge-centric. This means that to propagate this alternative will require an investment that has a different logic. In particular, investments that enable peoples capabilities to make them active participants will be crucial, as they are the real wealth of nations.

AIEFS Contact: Kusum Ketkar, 15 Dorset Lane, Short Hills, NJ 07078 Phone: (973)-912-8960, kwketkar@hotmail.com

Volume 6 Issue 1, April 10, 2013

Indira Gandhi Institute of Development Research, Mumbai, India

Indira Gandhi Institute of Development Research (IGIDR) is an autonomous research body located in Mumbai and founded by the Reserve Bank of India. It has a deemed university status and has the highest possible rating of A by the National Assessment and Accreditation Council (NAAC) of India. IGIDR offers a Masters program in Economics and an integrated M.Phil/Ph.D. program in Development Studies. The Institute through its rigorous curriculum of international standards prepares students for careers par excellence in academia, business and policy. History The Institute was originally conceptualized as a think tank in development policy issues by the then RBI governor Dr. Manmohan Singh and came into existence in 1987 to commemorate the banks golden jubilee. Soon the Institute realized that frontier level research required the presence of a dynamic student body and subsequently started its Ph.D. program in 1990. It gained stature as a deemed university in 1995, and extended its curriculum to include M.Phil in 1996, followed by Masters in Economics in 2003. Focus IGIDR is one of the few centers of higher learning in India that focuses on academic training and research from an interdisciplinary perspective. It encourages students from a variety of disciplines like Economics, Mathematics, Science and Engineering - with mathematics at the higher secondary level - to join its programs. IGIDR brings together researchers from diverse specializations to provide holistic analyses of contemporary issues in areas that include climate change, poverty and human development, law and economics, and money and finance among others. The teacher-student ratio in the institute is as high as 1:2 which ensures that every student gets personalized attention and guidance.

AIEFS Contact: Kusum Ketkar, 15 Dorset Lane, Short Hills, NJ 07078 Phone: (973)-912-8960, kwketkar@hotmail.com

Volume 6 Issue 1, April 10, 2013

ASSOCIATION OF INDIAN ECONOMIC & FINANCIAL STUDIES (AIEFS)

Call for Papers Association of Indian Economic and Financial Studies (AIEFS) and Indira Gandhi Institute of Development Research (IGIDR)
The Association of Indian Economic and Financial Studies (AIEFS) will hold its 20th biennial meetings in collaboration with Indira Gandhi Institute of Development Research (IGIDR) under the auspices of IGIDRs silver jubilee celebrations in Mumbai, India on August 2-3, 2013. In general, both theoretical and empirical papers on economic development and growth, including monetary and financial issues will be considered. Completed paper/or detailed abstract of the paper should be submitted to Kusum W. Ketkar, Executive Director and Program Chair, AIEFS by May 1, 2013. Program committee will be responsible for selecting papers for presentation. Authors of accepted papers will be informed of the committees decision by May 25, 2013. Authors are encouraged to make electronic submissions at kwketkar@hotmail.com, kwketkar@gmail.com. All submissions must be accompanied by annual AIEFS membership dues for 2013 and completed membership form. Those who are either life members or have already paid dues for 2013 are not required to pay dues with their submission. Annual membership fee is $40 and students are charged concessional rate of $20 (Membership fee may be waived under certain circumstances). AIEFS membership form can be downloaded from the website: www.aiefs.org. Membership dues can be paid electronically from the website. Registration fee of $75 will be charged from all non-Indian subcontinent based attendees. Registration fee for Indian subcontinent based attendees is Rs. 2,000. No funding is available for attending/participating in the meetings.

AIEFS Contact: Kusum Ketkar, 15 Dorset Lane, Short Hills, NJ 07078 Phone: (973)-912-8960, kwketkar@hotmail.com

Volume 6 Issue 1, April 10, 2013

For those submitting abstract only, it should consist of at least 500 words. It should include research objective, review of literature, methodology and sources of data for empirical papers.

It is intended that a selection of papers will be put forward for a journal special issue on a connected theme. Following additional Information should be attached with the paper/or abstract on a separate sheet: 1. 2. 3. 4. 5. 6. 7. 8. Title of the paper: JEL classification of the paper: Name(s) of the author(s): Affiliation of the author(s): Mailing address: E-mail address(s): Telephone number(s) (r): (w): Fax number: Additional/optional willingness to discuss other papers and chair sessions (with areas of interest and specialization)

Deadline: May 1, 2013 Please send the information to: Professor Kusum Ketkar, Executive Director and Program Chair 15 Dorset Lane, Short Hills, NJ 07078 E-mail: kwketkar@hotmail.com, kwketkar@gmail.com Phone :( 973) 912-8960
Note: If you wish to serve on AIEFS executive committee, please let the Executive Director know as soon as possible. Go to www.aiefs.org to know more about the organization.

AIEFS Contact: Kusum Ketkar, 15 Dorset Lane, Short Hills, NJ 07078 Phone: (973)-912-8960, kwketkar@hotmail.com

Volume 6 Issue 1, April 10, 2013

ASSOCIATION OF INDIAN ECONOMIC & FINANCIAL STUDIES (AIEFS)

Call for Papers

The Association of Indian Economic and Financial Studies (AIEFS) is sponsoring sessions at ASSA 2014, Philadelphia, PA, January 3 -5, 2014.
In general, both theoretical and empirical papers on economic development, growth, economic policy and political economy will be considered. Quality papers on other topics will also be given consideration. Completed paper/or detailed abstract of the paper should be submitted to Kusum W. Ketkar, Executive Director and Program Chair, AIEFS by May 20, 2013. Program committee will be responsible for selecting papers for presentation. Authors are encouraged to make electronic submissions at kwketkar@hotmail.com, kwketkar@gmail.com. All submissions must be accompanied by annual AIEFS membership dues for 2013 and completed membership form. Those who are either life members or have already paid dues for 2013 are not required to pay dues with their submission. Annual membership fee is $40 and students are charged concessional rate of $20. AIEFS membership form can be downloaded from the website: www.aiefs.org. Membership dues can be paid electronically from the website. For those submitting abstract only, it should consist of at least 500 words. Abstract should include research objective, review of literature, methodology and sources of data for empirical papers. Note: File name of paper/abstract should include last name of the author and not just AIEFS2014. Example: AIEFS2014ASen, where A is for Amit. It is intended that a selection of papers will be put forward for a journal special issue on a connected theme.

AIEFS Contact: Kusum Ketkar, 15 Dorset Lane, Short Hills, NJ 07078 Phone: (973)-912-8960, kwketkar@hotmail.com

Volume 6 Issue 1, April 10, 2013

Following additional Information should be attached with the paper/or abstract on a separate sheet: 1. Title of the paper: 2. JEL classification of the paper: 3. Name(s) of the author(s): 4. Affiliation of the author(s): 5. Mailing address: 6. E-mail address(s): 7. Telephone number(s) (r): (w): Fax number:

8. Additional/optional willingness to discuss other papers and chair sessions (with areas of interest and specialization)

Deadline: May 20, 2013 Please send the information to: Professor Kusum Ketkar, Executive Director and Program Chair 15 Dorset Lane, Short Hills, NJ 07078 E-mail: kwketkar@hotmail.com, kwketkar@gmail.com Phone :( 973) 912-8960 Note: If you wish to serve on AIEFS executive committee, please let the Executive Director know as soon as possible. Go to www.aiefs.org to know more about the organization.

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AIEFS Contact: Kusum Ketkar, 15 Dorset Lane, Short Hills, NJ 07078 Phone: (973)-912-8960, kwketkar@hotmail.com

Volume 6 Issue 1, April 10, 2013

ASSOCIATION OF INDIAN ECONOMIC & FINANCIAL STUDIES (AIEFS)

Department of Economics, Rochester Institute of Technology 90 Lomb Memorial Drive, Rochester, NY 14623-5604 kwketkar@hotmail.com kwketkar@gmail.com (Please type or write everything in capital letters)

Name: __________________________________________________________________ Affiliation: ______________________________________________________________ Mailing address: ________________________________________________________ _________________________________________________________ Phone: ( ) (H); Phone: ( ) (W); Fax: ( ) .

E-mail: _________________________________________________________________ Area of interest/specialization: (1) (2) (3)

Circle your preferences, if you plan to participate in any AIEFS programs: 1. AIEFS biennial conference, held generally in summer months every other year (next one due in 2013) 2. AIEFS-sponsored occasional seminars 3. AIEFS sessions at Eastern Economics Association, generally in February/March every year 4. AIEFS sessions at ASSA, held generally in the first week of January every year 5. Contribute short, 1-2 page articles to the AIEFS Newsletter, occasionally or on a regular basis Please check the membership category you have chosen. ____ Life ($ 350), ____ Full ($ 40), ____Family ($ 50),____ Student ($20) (Except Life, all other categories of membership are for a calendar year) To pay membership fee online, go to: www.aiefs.org or make the check payable to the Association of Indian Economic and Financial Studies (AIEFS) and mail it, along with this completed form to the Executive Director at the address : Kusum W. Ketkar, Executive Director, AIEFS 15 Dorset Lane, Short Hills, NJ 07078 Phone: 973-912-8960 Paper presenter/discussant Paper presenter/discussant Paper presenter/discussant Paper presenter/discussant

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AIEFS Contact: Kusum Ketkar, 15 Dorset Lane, Short Hills, NJ 07078 Phone: (973)-912-8960, kwketkar@hotmail.com

Volume 6 Issue 1, April 10, 2013

About AIEFS
AIEFS sponsors sessions at the annual ASSA, Western Economic Association and Eastern Economic Association. It also holds biennial meetings either in the US or India. First biennial meeting in India was held in collaboration with Research and Information System for Developing countries (RIS) in June 2011 In Delhi. The 2013 biennial meeting will be held in collaboration with Indira Gandhi Institute of Developments Research in Mumbai, August 2-3, 2013. AIEFS brings out Newsletter twice a year fall and in spring. From time to time, AIEFS also publishes edited books or proceeding of papers presented at ASSA and biennial meeting. In recent years, papers have been published in special issues of peer reviewed journals.
For futher information of AIEFS or to become a member, please visit the website: www.aiefs.org. Or contact executive director: Professor Kusum W. Ketkar kwketkar@hotmail.com or kwketkar@gmail.com

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AIEFS Contact: Kusum Ketkar, 15 Dorset Lane, Short Hills, NJ 07078 Phone: (973)-912-8960, kwketkar@hotmail.com