AGRARIAN

DISTRESS AND
FARMERS SUICIDE
INTRODUCTION
• India is an agrarian economy with aroundtwo-third of its working
population
depending directly or indirectly upon agriculture.
• Inspite its decline to GDP, it is still the largest sector and plays an important role in the
overall socio-economic development of the country.
• Agricultural crisis in India is mainly the result of the marginalisation of
agrarian economy in national policy since the initiation of economic reforms in the
1990s.
• Farmers’ indebtness is also the main cause of distress in the agriculture sector.
• Poor returns to cultivation and absence of non-farm opportunities are also indicative of
the larger socio-economic malaise in rural India.

2
INTRODUCTION

https://pib.gov.in/FeaturesDeatils.aspx?NoteId=151185&ModuleId%20=%202
3
INTRODUCTION
• Srijit Mishra identifies the reasons of agrarian crisis to be as follows:
• First, there has been a declinein the growthrate of productionas well
as productivity for almost all crops from the mid-nineties.
• Second, there is an excessive dependence of a large sectionof
population on
agriculturepointing at the limited availability of non-farming employment
opportunities.
• The declining size-class of holding and an increasing preponderance of marginal
holdings along with poor returns from cultivation.
• Limited focus of Green Revolution on rice and wheat under irrigated condition and
By passing of crops and regions under rainfed or dry land conditions.

4
INTRODUCTION
• Decline in the resource plan allocation in public investments in public irrigation and
other related infrastructure.
• Lack of adequate credit facilities from formal sources.
• Uncertainties related to products and markets emerging out of changing
technology and market conditions.

5
FARMERS’ SUICIDE
• The issue of farmer’s suicide got attention through the article of P Sainath.
• First incidents of farmer’s suicide were reported from the state of
Maharashtra followed by Andhra Pradesh.
• NCRB reports that 5,563 agricultural laborers committed suicide in 2021 and the
number of people killing themselves increased by 9% from 2020, and up 29% from
2019.
• Most suicides were reported in Maharashtra, with 1,424 cases, followed by Karnataka
with 999, and Andhra Pradesh with 584.

6
Source:https://timesofindia.indiatimes.com/india/farm-sect
or-suicides-up-but-farmer-suicides-come-down/articleshow/
93865743.cms

7
CAUSES
• Agricultural indebtness, rising cost and declining profits.
• Trade liberalization and corporate globalization
• Disintegration of joint family system to nuclear family
system.
• Scarcity of water, power, etc.
• Unwillingness to adopt scientific farming activities.
• Drought and inadequate rainfall.
• Lack of direct integration with the market.
• Lack of awareness
• Climate change

8
PREVENTION
STRATEGIES
• Shift from GMO to non-renewable seeds to organic, open pollinated seed varieties.
• Shift from unfair trade based on false prices to fair trade based on real and just prices.
• Regulation of private credit and input markets
• Use of innovative and scientific agricultural techniques to reduce costs while increasing
returns.
• Proper training to farmers on the use of pesticides and fertilizers.
• Encouraging farmers to adopt the allied activities like diary, poultry, etc. along with
farming activities.
• Agricultural debt waiver and debt relief scheme.
• Establishment of Farmers Counciling Centres at Panchayat level to help
farmers in
addressing their mental stress.
9
INDUSTRIALIZATION
INTRODUCTION
• Industrialisation can be described as the process of social and economic change taking place in
the society and transforming a human group of agricultural backgrounds into an industrial
society.
• Before the British Rule, India known for its handicraft industry.
• During the colonial period, India followed the non-industrial model as a developing country.
• Industrialization in India started in 1854 with the first cotton mill in Bombay.
• In 1901, there were 5,84,000 workers in Indian factories and by 1946 this number was over
24,36,000.
• Industrialization in India is considered as the engine of economic growth for the rest of
the
economy.
• The industrial policy aims at creating a strong industrial base and employment opportunities in
various directions, along with giving a thrust to speedy promotion and growth of all industries. 11
Source:
https://ncert.nic.in
/textbook/pdf/jess
304.pdf

12
INTRODUCTION
• Indian economy is mixed in nature which characterizes the presence of both private and public
sectors.
• After independence, India’s first Prime Minister Jawaharlal Nehru employed the tool of
industrialization to eradicate poverty from the country.
• Industrial Policy Resolution of 1948 declared the Indian economy as a mixed economy.
• The first Five Year Plan saw the development of a number of Industries in the public sector such
as Hindustan Shipyard, Hindustan Tools, Integral Coach Factory etc.
• The Second Five-Year and Third Five Year plan accorded highest priority to industrialisation
based on Mahalanobis Model which included substantial investment in the Iron and Steel, Coal,
Heavy engineering, Machine building, Heavy Chemicals and Cement Industries.

13
INTRODUCTION

14
INTRODUCTION

15
16
NEP 1991
• In 1991, the Government of India initiated a series of economic reforms to pull the
economy out of the crises of 90’s. These reforms came to be known as New Economic
Policy(NEP).
• Liberalisation, Privatisation and Globalisation are the three main elements of NEP.
• Abolishment of the industrial licensing.
• Simplification of the procedures and regulatory requirement to start a business.
• Reduction in the sector exclusively reserved for the public sector.
• Disinvestment of the selected Public-sector undertakings.
• Foreign investors were allowed to invest in the Indian firms.
• Liberalisation of the trade and exchange rate policies.
• Rationalisation and massive reduction in the structure of customs duties.
• Reduction in the excise duties.
16
• Reduction in the income and corporate taxes to promote Business.
18
ANNUAL GROWTH RATE OF INDUSTRIAL PRODUCTION IN INDIA
FROM FINANCIAL YEAR 2013 TO 2021

https://www.statista.co
m/statistics/661428/tot
al-industrial-production-
growth-rate-india/

19
Source:
https://vvgnli.gov.in/sites/
default/files/India%20Han
dbook%20%20of%20Labo
ur-%20Final-
%20English.pdf

20
Source:
https://www.
statisticstimes
.com/econom
y/country/ind
ia-gdp-
sectorwise.ph
p

21
CURRENT
STATUS
• Currently, India is one of the fastest growing economies of the world.
• In the first half of FY21, India received US$ 30 billion worth of funds through foreign direct
investment, a 15% increase over the same period last year.
• India has potential to become a global manufacturing hub and by 2030, it can add more than
US$ 500 billion annually to the global economy.
• Currently, India is the world’s fifth largest economy, and it is estimated that by 2031 our
country will emerge as the third largest economy.

22
LABOUR LAWS AND PROBLEMS
LABOUR LAWS IN INDIA
• Even after 75 years of Independence, approximately 90% of workers work in the
unorganized sector that do not have access to all the social securities.
• The total number of workers, comprising of organized and unorganized sectors, is more
than 50 crores.
• Various legislative, administrative and e-governance initiatives have been taken by the
Central Government and State Governments to generate employment and to facilitate
ease of doing business.
• For ensuring workers’ right to minimum wages, the Central Government has
amalgamated 4 laws in the Wage Code, 9 laws in the Social Security Code, 13 laws in
the The Occupational Safety, Health and Working Conditions Code, 2020 and 3 laws in
the Industrial Relations Code.

24
WAGE CODE, 2019
• The guarantee of minimum wages is available to 50 crore workers of organized and
unorganized sectors.
• Review of minimum wages in every 5 years.
• Guarantee of timely payment of wages to all workers.
• Equal remuneration to male and female workers.
• For the first time, around 40 crore workers of unorganized sector in the country have
got this right.
• To remove regional disparity in minimum wages the provision of floor wage has been
introduced.

25
SOCIAL SECURITY CODE, 2020
• Through a small contribution, benefit of free treatment is available under hospitals and
dispensaries of ESIC (Employees' State Insurance Corporation).
• The doors of ESIC will now be opened for the workers of all sectors along with the
workers of the unorganized sector.
• Expansion of ESIC hospitals, dispensaries and branches upto district level. This facility
to be increased from 566 districts to all the 740 districts of the country.
• Even if a single worker is engaged in hazardous work, he would be given ESIC benefit.
• Opportunity to join ESIC for platform and gig workers engaged in new technology.
• Plantation workers to get benefit of ESIC.
• Institutions working in hazardous area to be compulsorily registered with ESIC.

26
SOCIAL SECURITY CODE, 2020
• Benefit of pension scheme (EPFO) to all workers of organized, unorganized and self-
employed sectors.
• Creating a national database of workers of unorganized sector through registration on
Portal.
• A Universal Account Number (UAN) for ESIC, EPFO and Unorganised Sector workers.

27
OCCUPATIONAL, SAFETY, HEALTH AND WORKING CONDITIONS, 2020
• Various provisions in the OSH Code willease the lives of the Inter-State
Migrant Workers.
• A provision has been made for employers to provide travelling allowance annually to an
Inter-State Migrant Worker for undertaking a to-and-fro journey to his native place.
• Providing of appointment letters to the workers has been made mandatory.
• Mandatory, free annual health check-up of the workers to be provided by
the
employers.
• Under the “One Nation - One Ration Card”, an Inter-State Migrant Worker would get
ration facility.
• Mandatory helpline facility in every State for resolution of Inter-State Migrant Workers’
grievances. 28
OCCUPATIONAL, SAFETY, HEALTH AND WORKING CONDITIONS, 2020
• National database to be created for the Inter- State Migrant Workers.
• Women empowerment through the Labour Codes
• Right to women workers work in all types of establishments.
• Maternity Benefit Act was amended in 2017 to increase the paid Maternity leave for
women workers from 12 to 26 weeks and ensure mandatory crèche facility in all
establishments having 50 or more workers.

29
INDUSTRIAL RELATIONS (IR) CODE, 2020
• In case of job loss, a worker will get benefit under the Atal Bimit Vyakti Kalyan
Yojna.
• Faster justice to the workers through the Tribunal.
• Workers disputes to be resolved within a year in the Tribunal.
• Industrial Tribunals to have 2 members to facilitate faster disposal of cases.

30
LEGISLATIVE INITIATIVES OF CENTRAL GOVERNMENT
• Under Payment of Bonus Amendment Act, eligibility limit for payment of bonus
enhanced from Rs 10000/- to Rs. 21000/- per month and the Calculation Ceiling from
Rs. 3500/- to Rs. 7000/- or the minimum wages.
• Payment of Wages (Amendment) Act, 2017 enabling payment of Wages to employees
by Cash or Cheque or crediting it to their bank account.
• Child Labour (Prohibition and Regulation) Amendment Act, 2016 provides for complete
ban on employment of children below 14 years in any occupation or process.
• Maternity Benefit Amendment Act, 2017, increases the paid maternity leave from 12
weeks to 26 weeks.
• The Employee Compensation (Amendment) Act, seeks to rationalize penalties and
strengthen the rights of the workers under the Act.
31
LABOUR PROBLEMS IN INDIA
• Predominance of the agricultural and allied sectors as a main means of employment.
• Higher share of workforce engagement in the unorganized sectors of the economy.
• Shrinking of the public sector jobs.
• Emergence of new patterns of employment in the form of contractual,
temporary, causal jobs.
• Inadequacy and failure of the state machinery in the implementation of labour laws.
• Wider labour participation gap between the males and females.
• Issues related with quality and skillsets.
• Labour activism and associated problems.
• Policy of hire and fire, labour exploitation, lower wages, longer working hours, etc.
• Weakness in the redressal mechanisms.
32
THANK
YOU
Email Address here

Website here