DR.

RAM MANOHAR LOHIYA NATIONAL LAW UNIVERSITY

Law and Agriculture (2018-19)

Project on

FARMER’S SUICIDE IN INDIA: AN AGRARIAN CRISIS

Submitted to: Submitted by:

Mr. Malay Pandey Angelika Awasthi (150101016)

Assistant Professor (Law) Anusha (150101025)

Semester VIII-A

1
 ACKNOWLEDGEMENT
The product at hand is not the effort of the researcher alone. I would like to take
this opportunity to thank Mr. Malay Pandey for allowing me to take up a topic of my
interest. Also, I wish to express my gratitude for his valuable support, guidance and
advice which has helped me to complete this project. I would also like to thank the
library staff for working long hours to facilitate us with required material going a
long way in quenching our thirst for education. I would also like to thank my seniors
for guiding me through tough times they themselves have been through, and lastly I
would like to thank my friends for keeping alive the spirit of competition in me.

2
 TABLE OF CONTENT
Acknowledgement......................................................................................................................2
Table of content..........................................................................................................................3
Introduction................................................................................................................................5
Causes Of Farmers Suicides In India.........................................................................................7
Financial Reasons...................................................................................................................7
Natural Calamities..................................................................................................................7
Increase in cost of production.................................................................................................8
Political reasons......................................................................................................................8
Global Reasons.......................................................................................................................9
Illiteracy, Traditions & Culture..............................................................................................9
New Changes........................................................................................................................10
Indebtedness in Rural India..................................................................................................11
Drought.................................................................................................................................11
GM crops..............................................................................................................................12
Other reason..........................................................................................................................12
Farmers Suicide At A Glance..................................................................................................13
Why Farmers are Killing Themselves?................................................................................13
What happens to the families after a farmer commits suicide?............................................14
Possible Remedies To Avoid Farmers Suicides.......................................................................15
Financial Help......................................................................................................................15
Effective loan schemes.........................................................................................................15
Effective loan waiving scheme.............................................................................................15
Export policies......................................................................................................................16
Irrigation facilities................................................................................................................16
Policy about MRPs...............................................................................................................16
Other Remedies....................................................................................................................16
Responses To Farmers' Suicides..............................................................................................17
2006 relief package...............................................................................................................17
Agricultural debt waiver and debt relief scheme, 2008........................................................17
Regional initiatives...............................................................................................................18
Maharashtra relief package, 2010.........................................................................................18
Kerala Farmers' Debt Relief Commission (Amendment) Bill, 2012...................................18

3
 2013 diversify income sources package...............................................................................18
Effectiveness of government response.................................................................................19
How To Stop Farmers Suicides................................................................................................20
70% Cut in Monsanto’s Royalties........................................................................................20
Pradhan Mantri Krishi Sinchai Yojana.................................................................................20
Pradhan Mantri Fasal Beema Yojna (Crop Insurance for Farmers).....................................20
Relief to Farmers in Input Subsidy.......................................................................................21
Soil Health Card...................................................................................................................21
Conclusion................................................................................................................................23
References................................................................................................................................24

4
 INTRODUCTION
‘It is in the agricultural sector that the battle for long-term economic development will
be won or lost’.

India is a developing country and After China it is considered as one of the fastest developing
nation of the world. While measuring development of nation, development of Industrial and
service sector is considered with development of basic infrastructural facilities & increased in
employment opportunities. But for the sustainable development of any nation only
development of Industrial and service sector is enough. In addition to this growth and
development of Agriculture sector is also important. In India, more than 60% of total
population of nation is resides in rural area and Agriculture and its allied activities are the
main source of their Income. Their overall development is depends upon development and
growth of Agriculture sector. But government of India and concern state governments
willfully neglected to Agricultural sector. This not only affects on standard of living of rural
Indians but also affects on economic development of country. Simultaneously it affects on
overall development of India. India is an Agrarian economy where Agriculture is the main
source earning of majority of people of the nation. But Politicians, Industrialist and
Manufacturers/Producers willfully neglected qualitative and quantitative growth &
development of the same. Government of India has always given preference to Industrial and
service sector and collateral Agricultural sector in all levels of development. Due to this
attitude of Indian government, Agriculture sector facing many problems in last two decades.
After 1991, in the era of Globalization this problem becomes more critical. After 1991,
government of India adopted policies of WTO and signed GATTS, which was totally in favor
of Developed nations like USA, UK, Japan and other European counties but totally harmful
for Developing and underdeveloped countries. These new changes had adversely affected on
Agricultural sector of developing and underdeveloped countries. Manufactures of food and
industrial raw material (i.e. Farmers) are facing financial problems due to the International
and national policies. The success of Agriculture sector is also depends on natural conditions
also. If natural condition is favorable, production is also good but unfavorable natural
condition badly affects on quality and quantity of the goods produced by farmers. Even if
natural condition is favorable and production is good with high quality, farmers are not
ensuring that they will get good return of their products. Because high production also
reduces their

5
income as prices in the market are fall down due to heavy supply of goods. The above
conditions focused on the various problems facing by Indian farmers. Whether the
environment is favorable or unfavorable, farmers always faces losses. Due to continuation of
this condition and failure on state and central government in taking effective measures to
protect and help to farmers to overcome on this barrier. Most of them became bankrupt and
burden of heavy. In recent years, one observes an increasing incidence of farmers’ suicides.
Suicide being a multifaceted and complex phenomenon, the risks are identified either in the
neurobiological or socio-economic domain. The former is predisposing in nature and are
internal to the individual whereas the latter are the precipitating ones and are external to the
individual. A relatively higher suicide among a particular sub-group is indicative of a larger
socioeconomic malaise. E-payment of Debts and other family responsibilities forces them to
commit suicides. current agrarian crisis is briefly elaborated as follows. First, there has been a
decline in the trend growth rate of production as well as productivity for almost all crops
from the mid-nineties. Further, the value of output from agriculture has been declining from
late nineties. Second, there is an excessive dependence of a large section of the population on
agriculture, declining size-class of holding and an increasing preponderance of marginal
holdings along with poor returns from cultivation indicates that income for farm households
is very low. Supply of credit from formal sources to the agricultural sector is inadequate
leading to greater reliance on informal sources at higher interest burden. Last, but not the
least, with changing technology and market conditions the farmer is increasingly being
exposed to the uncertainties of the product as well as factor.

6
 CAUSES OF FARMERS SUICIDES IN INDIA

Financial Reasons

As an agrarian economy more the 60% population of India depends on agriculture and its
allied activities. But for the successful running of agriculture and its allied activities requires
capital. More than 80% of the Indian farmers are marginal land owners and they are
economically poor. So they are facing economical problems for successful running of
agricultural activities. At the same time nationalize banks are not willing to lend funds to
farmers as there is no surety to return it. Even the private money lenders don’t lend funds to
them as they don’t have any mortgage except their land. Even they lends funds to farmers
they charges high rate or compound rate of interest. In addition to this, the farmers has their
family responsibilities like education, marriages and health provisions of their family
members and children, which requires huge money. Even the Government of India (GOI) and
concern state government also fails to give economic relief to farmers. The government
always declares various packages in crore of rupees to farmers for relief but due to corruption
in distribution, wrong criteria of assigning aids, unwillingness about farmers problems needy
farmers don’t get benefits of government help. The burden of these entire things turns them
towards suicides.

Natural Calamities

In addition to economic reasons natural calamities are also responsible for farmers suicides.
The effective agricultural production is mostly depending on favorable weather condition.
Due to the global warming, deforestation and other manmade reasons natural condition has
become more worsen and reasons like heavy raining, floods, droughts, delay in raining,
heavy cyclones, and manmade reason like reduction in subsidies, fire, accidents and so on,
farmers are not able to take qualitative and quantitative production from their farm. Even all
the condition is in favor of farmers and production is good in quality & quantity farmers
don’t get proper return of their product in the market, as more supply of goods reduces
demand and reduction in demands automatically reduces price of the same. Most of the time
farmers are not able to recover cost price of their product. The State governments declare
MRPs of the agricultural product every year. But the MRPs declared by government are less

7
than the total cost incurred for production. Due to these reasons agriculture becomes an
assured loss-making business. But the marginal & small farmers of India don’t have another
option for earning. And they again & again put their all efforts in the agriculture. Continuous
losses turn them to become insolvent and frustration of the same forces them to commit
suicides.1

Increase in cost of production

In addition to the above reasons increase in cost of production also forces to the farmers to
commit suicide. Agriculture sector in India requires huge manpower for ploughing, digging,
soil maintenance etc., for insecticides, pesticides, cutting, transportation and selling of
products requires funds. In addition to this hybrid seeds are also requiring for good quality &
quantity of product, which are very costly and not affordable to marginal and poor farmers of
India.

Political reasons

Politics in India is one of the main reasons for farmers suicide in India. For the success of any
business & profession, in addition to favorable economical and weather condition, political
environment also plays important role. The Indian politicians who plays important role in
policy making and decision making are totally shy and neglected agriculture sector. They are
failing to take effective measures for soundness of agriculture. The politician has totally
neglected agriculture sector and always gives preference to Industrial and service sector.
While deciding MRPs of agricultural produces they don’t consider the cost incurred for the
production of same. They frequently declare various relief packages for farmers but failing to
take effective implementation of the same. So, the needy farmers don’t get the benefits of
such packages. The government also frequently bans export of agricultural products as per
terms & conditions of WTO & GAATs. This is harmful for the exportable agricultural
produces. at the same time most of the small and marginal farmers are belongs to backward
communities like SCs, STs, OBCs and Muslims (Inferiors in Indian Politics) and even today

<http://ncrb.nic.in/StatPublications/ADSI/ADSI2015/chapter2A%20suicides%20in%20farming
1

%20sector.pdf>last accessed on 14th March, 2019.

8
politics is the monopoly of self-declared superiors. This is resulted in biases in distribution of
financial help and subsidies.2

Global Reasons

The GOI has accepted Liberalization, Privatization and Globalization (LPG) policy after
1991 and signed GAAT agreement as per the terms and conditions of WTO. Which forced to
India to accept all the restriction binding on member countries. Even today the GAAT
agreement is helpful for the developed countries and developing & Underdeveloped countries
facing many problems as they don’t have freedom while taking various production and sell
and export of the same. Patents of certain agricultural products are also troublesome for
Indian farmers. e.g. Indian don’t have patent of B.T. Cotton Seeds. And main product of
farmers of Vidarbha region of Maharashtra cotton. Due to GAAT agreement and
international patent policies. Even we are capable for B.T. cotton seeds we must import
hybrid B.T. cotton seeds from abroad which is very costly due to import duties and all other
charges. These restrictions support to increase in cost of production. And in addition to this, if
above four factors are against to the farmers, they don’t have any other option than suicide.

Illiteracy, Traditions & Culture

In addition to above factors Illiteracy, Tradition and Culture also forces to farmers to commit
suicide. Due to illiteracy and inadequate knowledge, farmers do not believe in importance of
education. Lack of education skills their decision-making skills. Lack of money and
perception capacity, they turn to rights and rituals of orthodox and other religious activities
which again requires more money. And sometimes, to perform these activities they use to
take heavy loans from private money lenders with high rate of interest. In addition to this, a
marriage of daughters, farmers require to give huge fund and gold to their son in law (Known
as ‘Hunda’). If the farmers fail to perform all these traditions and cultural activities they
become frustrate and turn towards suicide.

2
<http://ncrb.nic.in/StatPublications/ADSI/ADSI2015/adsi-2015-full-report.pdf>last accessed on 15 th March,
2019.

9
New Changes

After the green revolution and innovation of new technologies new hybrid seeds, insecticides,
pesticides and farm cultivation technologies makes farming more easier and production is
increased considerably. But these technologies and innovations are so costly and not
affordable to poor small and marginal farmers. marginal farmers have small piece of land
which might be less than a hectare e.g. the Vidarbha, a highly farmer suicide region of
Maharashtra has three district namely Wardha, Yawatmal & Washim has highest number of
marginal farmers i.e. 33.30, 46.70 & 27.60% respectively. And number of small farmers was
23.80, 17.20 & 10.00% respectively in 2006. This data is enough to focus on condition of
farmers in India.

Following two progressive years of dry spell, 2016 was ending up being a moderately better
year for agriculturists till 8 November. The choice to scrap high-esteem money notes,
reported on that day, appears to have hit the homestead division the hardest.3

While tenable and convenient information on cultivate earnings and yield is difficult to find,
a glance at the patterns in cultivate costs propose that the segment may have been
unfavourably influenced by the note boycott. There are three key reasons why farming is
probably going to be the most exceedingly awful influenced by the note boycott. One, the
approach corresponded with reap of kharif yields, and farmers are confronting trouble
offering their products because of the cash crunch. Two, absence of money more likely than
not postured trouble for farmers in sowing of rabi crops. Albeit, official gauges so far show
ordinary sowing action, the underlying appraisals are just temporary in nature. Three,
dissimilar to different segments, cultivate yield is perishable in nature and consequently less
suited to withstand transitory change in accordance with request. It should be remembered
that moderately more perishable green creation (leafy foods) surpassed sustenance
horticultural production by around 12% out of 2015-16. 4

Dissimilar to on account of different segments, salaries in cultivating are to a great degree

regular. In the event that growing a kharif product or some natural product/vegetable which
was to be advertised in the ebb and flow season constituted a rancher's primary farming

3
Deeptiman Tiwari “In 80% farmer-suicides due to debt, loans from banks, not moneylenders”
<http://indianexpress.com/article/india/in-80-farmer-suicides-due-to-debt-loans-from-banks-not-moneylenders-
4462930/>last accessed on 19th March, 2019.
4
https://thewire.in/wp-content/uploads/2017/04/Annex-1-%E2%80%93-Farmer-suicides-2016-and-2017.pdf

10
action in the year, inability to get gainful costs can have a major effect on his/her aggregate
pay for the whole year.

Indebtedness in Rural India

Indebtedness has been highlighted as the prime cause of farmer suicide in most relevant
policy reports that have seriously studied this issue. A report from the Maharashtra state
government concluded that 93 percent of all these suicides are due to debt. Dr. M. S.
Swaminathan in his recent article on farmers’ suicide in The Hindu has called for “Ending the
‘debt deaths’” The NSS data indicates that in 2002 about 27 percent of rural Indian
households were indebted and 18 percent of urban households. In 2013 the rural indebtedness
in Indian households had gone up to 31 percent. There is enormous variation in IOI at the
state level. Telangana has the highest IOI with 59 percent of rural households in debt while
Maharashtra’s IOI is 31 percent which is close to the country average. The IOI in Bihar and
UP are also very close to the national average at 29.1 and 29.6 percent respectively. Further,
the NSSO data suggests that debt burden measured as debt to asset ratio declines with
increase in asset holding. So, it is the poorer households that have higher debt burden. This is
true for both institutional as well as non-institutional debt. However, the suicide data reported
by the Maharashtra state government indicates that incidence of suicide is much higher for
households with larger land holdings. Nearly 86 percent of all farmer suicides in Maharashtra
have more than two acres of landholding and 60 percent have more than four acres. Across
many years, in several states, special packages have been designed by the state governments.
In some years, the Prime Minister’s Office too has announced special interventions to deal
with the severe problem of farmer suicide. They primarily highlight the role of debt and offer
schemes of loan waiver, rescheduling, reduction in interest rates and moratorium on recovery
of loans.

Drought

As much as 79.5% of India's farmland relies on flooding during monsoon season, so

inadequate rainfall can cause droughts, making crop failure more common. In regions that
have experienced droughts, crop yields have declined, and food for cattle has become scarcer.

11
Agricultural regions that have been affected by droughts have subsequently seen their suicide
rates increase

GM crops

A number of social activist groups and studies proposed a link between genetically modified
crops (GM) crops and farmer suicides. Bt cotton (Bacillus thuringiensis cotton) was claimed
to be responsible for farmer suicides. The Bt cotton seeds cost nearly twice as much as
ordinary ones. The higher costs forced many farmers into taking ever larger loans, often from
private moneylenders charging exorbitant interest rates (60% a year). The moneylender was
claimed to collect his dues at harvest time, by compelling farmers to sell their cotton to him at
a price lower than it fetches on the market. According to activists, this created a source of
debt and economic stress, ultimately suicides, among farmers. Increasing costs in farming
associated with decreasing yields even with use of BT cotton seeds are often quoted cause of
distress among farmers in central India. Scholars claim that this Bt cotton theory made
certain assumptions and ignored field reality

Other reason

In addition to the all above reasons lack of basic infrastructural facilities like safe drinking
water, inadequate health facilities, transport facilities, proper food, cloth and shelter effects
on psychological and physical condition of the farmers. Sometimes they become drug
addicted and drunker. All these things attracted heavy diseases and turn them to die.

12
 FARMERS SUICIDE AT A GLANCE
In 2014, the National Crime Records Bureau of India reported 5,650 farmer suicides.
Suicides by farmers touched a grim high in 2015. The death toll on December 31, 2015 stood
at 3,228, indicating that the slew of measures the government undertook through the year
failed to arrest the disturbing trend. Maharashtra has recorded 20,504 farmer suicides since
2001. Data obtained from the government shows Vidarbha, the region Chief Minister
Devendra Fad Navis hails from, was the worst hit last year, with around 1,541 farmers from
Amaravati and Nagpur division committing suicides. As many as 1,130 farmers ended their
lives in the Aurangabad division of Marathwada. Nashik in North Maharashtra witnessed 459
cases of farmer suicides of the 3,228 suicides, the state has found only 1,841 eligible for
government aid, while 903 were found ineligible. While 484 cases are pending for inquiries,
ex-gratia aid has been extended to 1,818. 116 farmers committed suicide in 2016; 10 states
reeling under drought. As many as 116 farmers have committed suicide due to agrarian
reasons so far in 2016, with maximum cases reported in Maharashtra, followed by Punjab and
Telangana.

Why Farmers are Killing Themselves?

Various reasons have been offered to explain why farmers commit suicide in India, including:
floods, drought, debt, use of genetically modified seed, public health, usage of lower quantity
of pesticides due to less investments produce a decreased yield and also government
economic policies. There is no consensus on what the main causes might be but studies show
suicide victims are motivated by more than one cause, on average three or more causes for
committing suicide. Some states, which are "farm-related reasons get cited only
approximately 25 percent of the time as reasons for suicide" and "studies do consistently
show greater debt burden and greater reliance on informal sources of credit" amongst farmers
who commit suicide A study conducted in 2014, found that there are three specific
characteristics associated with high risk farmers: "those that grow cash crops such as coffee
and cotton; those with 'marginal' farms of less than one hectare; and those with debts of
300 Rupees or more." The study also found that the Indian states in which these three
characteristics are most common had the highest suicide rates and also accounted for "almost

13
75% of the variability in state-level suicides." 5A 2012 study, did a regional survey on
farmers suicide in rural Vidarbha (Maharashtra) and applied a Smith's Saliency method to
qualitatively rank the expressed causes among farming families who had lost someone to
suicide.6 The expressed reasons in order of importance behind farmer suicides were
– debt, alcohol addiction, environment, low produce prices, stress and family responsibilities,
apathy, poor irrigation, increased cost of cultivation, private money lenders, use of chemical
fertilizersand crop failure. In other words, debt to stress and family responsibilities were rated
as significantly higher than fertilizers and crop failure. In a different study in the same region
in 2006, indebtedness (87%) and deterioration in the economic status (74%) were found to be
major risk factors for suicide

What happens to the families after a farmer commits suicide?

Farms are confiscated due to inability to pay back high interest loans. ƒ Harassment of the
family by corrupt moneylenders. Widows burdened with the new responsibility as the sole
breadwinner. Children sometimes lose both parents to suicide. Forcing their education to a
halt, especially if they have to work in order to provide for their needs.7

5
A study conducted in 2014, found that there are three specific characteristics associated with high risk farmers:
"those that grow cash crops such as coffee and cotton; those with 'marginal' farms of less than one hectare; and
those with debts of 300 Rupees or more." The study also found that the Indian states in which these three
characteristics are most common had the highest suicide rates and also accounted for "almost 75% of the
variability in state-level suicides." A 2012 study, did a regional survey on farmers suicide in rural Vidarbha
(Maharashtra) and applied a Smith's Saliency method to qualitatively rank the expressed causes among farming
families who had lost someone to suicide. The expressed reasons in order of importance behind farmer suicides
were – debt, alcohol addiction, environment, low produce prices, stress and family responsibilities, apathy,
poor irrigation, increased cost of cultivation, private money lenders, use of chemical fertilizersand crop failure.
[31]
 In other words, debt to stress and family responsibilities were rated as significantly higher than fertilizers and
crop failure. In a different study in the same region in 2006, indebtedness (87%) and deterioration in the
economic status (74%) were found to be major risk factors for suicide.
6

7
http://www.navdanya.org/attachments/Organic_Farming10.pdf

14
 POSSIBLE REMEDIES TO AVOID FARMERS SUICIDES

Financial Help

to avoid farmers suicide Government of India and concern state governments must give
subsidies to the farmers. while delivering these subsidies preference must be given to
marginal and small farmers. they should get free of cost hybrid seeds as they have small piece
of productive land. If they have given subsidies for the same . It should be given in cash and
before the sowing seeds. Which will help to avoid malpractices and corruption in distribution
of seeds and subsidies. In addition to this while deciding small and marginal farmers farming
of total family is taken into consideration instead of single landholders of each family.

Effective loan schemes

The government should establish special system while providing loan to farmers. Every
Nationalize and co-operative bank including Agriculture co-operative credit societies must
setup this system in their banks to provide loan to the farmers on time and as per their
requirements. At the same time loans should be provided at low rate of interest. So that
farmers should not be exploited and not discriminated by private moneylenders and creditors.

Effective loan waiving scheme

After consideration of high numbers of farmers suicides; In 2004, government of India and
concern states also declared packages of thousands of crore rupees for relief to farmers &
avoid their suicides. But the benefits of the same were not reached to families of suicide
affected farmers. so their condition is remain the same. And farmers suicides are continued
and even increasing day by day. E.g. according to the data of year 2007, out of the total 34
lacs farmers of Vidarbha region 95% of farmers of B.T. Cotton were in debt. Which means
needy farmers didn’t get the benefits of such relief packages. And package of 1075 crore
from chief minister of Maharashtra and 3075 crore from Prime Minister of India, failed to
control farmers suicides in Maharashtra. So instead of giving packages concern governments
should directly deposits money to the bank accounts of the farmers instead of waiving loans

15
Export policies

The Government of India and Concern state governments always make bias and takes
irresponsible decision in export of Agricultural products. They use to ban on export of
agricultural products when their prices are high. This is resulted to more supply in local
market and falling in prices. So farmers don’t get proper return of their produces. So, the
government should implement quota system for every farmer for export, to avoid these
practices while framing export policies.

Irrigation facilities

Indian farmers facing problems of irrigation. Geographical condition in India is varied for
every region. Some regions facing problem of heavy rainfall and some regions are comes
under drought prone area.Due to failure of water management heavy rainfall area and drought
prone area also facing problems of irrigation in rainy as well as off rain season like summer.
Indian agriculture policy makers. intentionally neglected this important fact. Farmers in India
are using traditional methods for irrigation, which consumes more water than actually
requirements and farmers don’t get water for irrigation as per their requirements in off rain
seasons & in droughts. So methods like Drip irrigation must be used to overcome on saving
& fulfillment of required water for agricultural productions.

Policy about MRPs

According to the Agricultural policy of GOI, it is binding on concern state government to

declare MRPs of all agricultural products before the agricultural production comes out. But
till 2010, all state governments have declared MRPs less than the cost of all agricultural
products. So, GOI and concern state governments must declare MRPs which at least gives
minimum profit or follow a policy of MRP which is Cost of Production + 30%. 10.7

Other Remedies: In addition to above measures GOI and all concern state governments must
help to farmers for development of allied activities of Agriculture and support for farmers
oriented small scale and agriproducts industries. This helps to increase standard of living,
solve financial problems and fulfill their basic, safety and prestigious needs.

16
 RESPONSES TO FARMERS' SUICIDES
The government appointed a number of inquiries to look into the causes of farmers suicide
and farm related distress in general. Krishak Ayog (National Farmer Commission) visited all
suicide prone farming regions of India, then in 2006 published three reports with its
recommendations.  Subsequently former Prime Minister Manmohan Singh visited Vidarbha
in 2006 and promised a package of 110 billion (about $2.4 billion). The families of farmers
who had committed suicide were also offered an ex gratia grant of 100,000 (US$1,500) by
the government, though this amount was changed several times

2006 relief package

In 2006, the Government of India identified 31 districts in the four states of Andhra Pradesh,
Maharashtra, Karnataka, and Kerala with high relative incidence of farmers suicides.  A
special rehabilitation package was launched to mitigate the distress of these farmers. The
package provided debt relief to farmers, improved supply of institutional credit, improved
irrigation facilities, employed experts and social service personnel to provide farming support
services, and introduced subsidiary income opportunities through horticulture, livestock,
dairy and fisheries. The Government of India also announced an ex-gratia cash assistance
from Prime Ministers National Relief Fund to the farmers. Additionally, among other things,
the Government of India announced: 8

Agricultural debt waiver and debt relief scheme, 2008

The Government of India next implemented the Agricultural debt Waiver and Debt Relief
Scheme in 2008 to benefit over 36 million farmers at a cost of 653 billion(US$9.7 billion).
This spending was aimed at writing of part of loan principal as well as the interest owed by
the farmers. Direct agricultural loan by stressed farmers under so-called Kisan Credit Card
were also to be covered under this Scheme.

8
“Farmers Suicide in India- Causes and Remedies”: 2006-2010 Kharat Rahul Sadashiv:
<http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.825.1376&rep=rep1&type=pdf>.

17
Regional initiatives

Various state governments in India have launched their own initiatives to help prevent farmer
suicides. The government of Maharashtra set up a dedicated group to deal with farm distress
in 2006 known as the Vasantrao Naik Sheti Swavlamban Mission, based in Amravati. A
group to study the Farmers Suicides was also constituted by the Government of Karnataka
under the Chairmanship of Dr Veeresh, Former Vice-Chancellor of Agricultural University
and Prof Deshpande as member

Maharashtra relief package, 2010

 State Government of Maharashtra made it illegal, in 2010, for non-licensed moneylenders

from seeking loan repayment. The State Government also announced that it will from Village
Farmer Self Help Groups, that will disburse government financed loans, a low rate Crop
Insurance program whose premium will be paid 50% by farmer and 50% by government,
launch of alternate income opportunities such as poultry, dairy and sericulture for farmers in
high suicide prone districts. The government further announced that it will finance a marriage
fund under its Samudaik Lagna with 10 million per year per district, for community marriage
celebrations, where many couples get married at the same time to help minimize the cost of
marriage celebrations – a cause of suicides among farmers as identified by its own study.

Kerala Farmers' Debt Relief Commission (Amendment) Bill, 2012

Kerala, in 2012, amended the Kerala Farmers' Debt Relief Commission Act, 2006 to extend
benefits to all distressed farmers with loans through 2011. It cited continuing farmer suicides
as a motivation.

2013 diversify income sources package

In 2013, the Government of India launched a Special Livestock Sector and Fisheries
Package for farmers suicide-prone regions of Andhra Pradesh, Maharashtra, Karnataka and
Kerala. The package was aimed to diversify income sources of farmers. The total welfare
package consisted of 912 million 

18
Effectiveness of government response

The government's response and relief packages have generally been ineffective, misdirected
and flawed, states Surinder Sud It has focused on credit and loan, rather than income,
productivity and farmer prosperity. Assistance in paying off outstanding principal and interest
helps the money lenders, but has failed to create reliable and good sources of income for the
farmer going forward. The usurious moneylenders continue to offer loans at interest rates
between 24 and 50 percent, while income generating potential of the land the farmer works
on has remained low and subject to weather conditions. Sud states that the government has
failed to understand that debt relief just postpones the problem and a more lasting answer to
farmer distress can only come from reliable income sources, higher crop yields per hectare,
irrigation and other infrastructure security. Golait, in a Reserve Bank of
India paper, acknowledged the positive role of crop diversification initiative announced in
government's response to reports of farmer suicides. Golait added, "Indian agriculture still
suffers from: i) poor productivity, ii) falling water levels, iii) expensive credit, iv) a distorted
market, v) many middlemen and intermediaries who increase cost but do not add much value,
vi) laws that stifle private investment, vii) controlled prices, viii) poor infrastructure, and ix)
inappropriate research. Thus the approach with mere emphasis on credit in isolation from the
above factors will not help agriculture". 

19
 HOW TO STOP FARMERS SUICIDES

Steps Modi Government has taken to Tackle Farmer Suicides

70% Cut in Monsanto’s Royalties

 Modi government announced a 70% cut in the royalties that the local firms pay Monsanto for
its cotton seeds.  With such deep cut in its revenue – which Monsanto has been accused of
jacking up due to its monopoly – Monsanto announced that it may leave the country and not
sell its seeds in India anymore.  To this, the Indian Minister of state for agriculture Sanjeev
Kumar Balyan said that Monsanto was welcome to leave if it does not want to adhere to the
lower prices (and stop indulging in price gouging) – Government says India ‘not scared’ if
Monsanto leaves.  This comes from the confidence of the Indian government to create its own
GMO seeds for cotton to rival Monsanto’s by early next year!

PRADHAN MANTRI KRISHI SINCHAI YOJANA

 This is the national mission from PM Modi’s government to improve the irrigation in the
country and enable the agriculture to become resistant to the vagaries of Indian monsoon.  It
is important to remember that climate vagaries in just 2014-15 led to 5.3% loss in foodgrain
production and 0.2% loss in agricultural growth rate. In the next 5 years, INR 50,000 crore
from the central budget would be utilised for the Pradhan Mantri Krishi Sinchai Yojana. The
contribution of the states will be over and above this. The main focus of PMKSY will be (i)
Micro-irrigation projects (“Har Khet Ko Pani”) and (ii) end-to-end irrigation solutions. The
PMKSY will also take up the irrigation projects that were started by previous government but
either not implemented or poorly implemented. 

Pradhan Mantri Fasal Beema Yojna (Crop Insurance for Farmers)

This is another major step that is needed to fight the issue of farmers suicide.  There were
crop insurance schemes earlier as well, but they fell short.  Here are some of the major
features of the crop insurance scheme brought about by PM Narendra Modi:
 The premium rate paid by the farmer will be to a maximum of  2% of the sum insured
(rest being paid by the State and Central Government).   Specifically, 2% of the sum

20
 insured as premium for kharif crops and 1.5% for rabi crops. In the previous scheme, the
rates were as high as 4-15%!

 Until now, the government only provided relief.  But this new scheme will provide
compensation for the losses incurred by the farmer.  In fact, the scheme will go beyond the
usual norms of such insurance schemes and even compensate for loss of seed plants and
post-harvest damage!  In a bid to improve the assessment of the calamities (hailstorms,
unseasonal rains, landslides and inundation).  To speed up the settlement of claims,
estimate losses, and assess compensation the government will use smartphones, remote-
sensing data and even drones to assess crop damage!

 The scheme will give an immediate payment of 25% of the due compensation to the
farmers directly into their bank accounts.  Anyone who knows the level of corruption
knows that the babus distributing the funds from Government relief pocket majority of it. 
That isn’t an issue thanks to the Jan Dhan yojana’s success!

 The previous crop insurance schemes have a 23% cover.  The aim of the new scheme
is to get to 50% cover.

 The Scheme will become applicable from the Kharif crop of 2016.9

Relief to Farmers in Input Subsidy 

In 2015, PM Narendra Modi announced that farmers will now be eligible for input subsidy
if 33 per cent of their crop has  een damaged, as opposed to 50 percent or more, which was
the norm till  now. Further, the input subsidy given to distressed farmers will be enhanced
by 50 per cent of the existing amounts.  PM said that “This is a major departure from the
incremental changes in input subsidy that have been made hitherto”.

Soil Health Card

Under this scheme launched by PM Modi in 2015, government issues soil cards to farmers

which carry crop-wise recommendations of nutrients and fertilizers required for the
individual farms to help farmers to improve productivity through proper use of inputs.
The soil testing labs across the country will test the soil samples and give the results which
will be added to a farmer’s Soil Health Card.  A total of 14,752,382 (147.5 crore) SHCs
have been issues in the country by 29th March 2016.

9
< http://www.aicofindia.com/AICEng/General_Documents/Product_Profiles/PMFBY/PMFBY.pdf> last
accessed on 26th Sept, 2018.

21
To ensure that the cultivators are getting a moderate income by controlling the price of
agriculture products.

• Market intervention from authority is essential to ensure the price of agriculture products.

• To ensure that the cultivators get enough compensation in case of crop loss due to disasters
like flood, draught, diseases etc.

• Deliberate attempt is needed for large-scale investment in agriculture sector, which prevents
cultivators to avail loans from private moneylenders.

• The cost of production is invariably higher than the minimum support price due to ever-
increasing prices of diesel and other inputs. Minimum Support Price should be regarded as
the bottom line for procurement both by Government and private traders. This will be
reflected in the prevailing market price.

• An efficient marketing system with Farmer’s Organizations could significantly add to

farmer’s income from his produce. They should be promoted to combine decentralized
production with centralized services such as post-harvest management, value addition and
marketing etc. • Security Scheme is essential for ensuring livelihood security, which should
take care of expenses up to a ceiling for hospitalization in case of illness of a family member,
maternity, life insurance and old age pension.

22
 CONCLUSION
 For an agricultural country like India, farmers’ suicide is an extremely worrying situation
and it certainly is a national problem which demands immediate solution. The government
should run more effective welfare schemes for the poor and landless farmers, some of which
may be like crop insurance and providing loans to the farmers on minimal interest rates. If
such welfare schemes can be offered immediately and without losing time any further, only
then the farmers can be prevented from committing suicides.

 It is urgent to pay attention to the rising incidents of the framers committing suicide. The
government should come forward and take necessary steps to safeguard the farmers against
all those issues which compel them to commit suicide. It should make adequate arrangements
for the farmers in case they lose their crops due to any eventuality and moreover it should
also provide them loan on the most economical interest rate to safeguard them from
becoming victims of landlords as well as money lenders.

23
 REFERENCES

1. http://ncrb.nic.in/ crimes and accidental deaths

2. http://www.un.org/esa/sustdev/csd/csd16/PF/presentations/farmers_relief.pdf
3. Vijay Times, SFarmers Suicide Toll Nearing 500 Mark in State,U Vijay Times, 19
October 2003, Bangalore.

4. The Hindu, The RBI sets up Panel on Rural Credit Delivery,U The Hindu, 17
December 2012.
5. Singh, P. K., SReforms in the Agriculture Sector,U Yojana, vol. 47, no. 11,
November 2011.
6. Menon, Parvathi, “From Debt to Death,” Frontline, 10 October 2014.

24