RF Assignment

Is Debt a cause of Farmer s Suicide? Problems and Solutions

Submitted By: Arindam Chowdhury (31011) Gaurav Jain (31014) Satyaranjan Patra (31045) Vaibhav Gupta (31055)

Agriculture has always been celebrated as the primary sector in India. there is no systematic planning in cultivation. The farmers normally resort to borrowing from money lenders in the absence of formal source of finance. one must analyse the agricultural set up in India. Indian agriculture is largely an unorganized sector. Prevention of crop failure should be the primary aim. The worst cases of farmers committing suicides come from the states of Andhra Pradesh. Added to this. The fact that majority of the farmers in India own as little as two acres of land. another state face worst floods. lack of alternative sources of income. Failure of monsoon directly affects the farmers. This calls for effective water management during seasons of good monsoons. debt trap. To understand this. Here are some solutions that could help in improving the state of the farmers: 1. absence of formal finance have left the farmers with no other solution other than ending their lives. Repeated crop failures. So. Secondly. where surplus water from perennial rivers can be diverted to those regions facing drought. cultivation on such small sized lands is not feasible. There as several other factors that contributes to farmers¶ suicide as discussed earlier. as it is being observed. Present Irrigation facilities do not cover the entire cultivable land. Another disturbing trend has been observed where farmers commit suicide in order to avail relief and benefits announced by the government to support the families of the farmers who have died. the cost of agricultural inputs have been steadily rising over the years and the price rise in inputs is not complemented by an increase in the purchase price of the agricultural produce. formal finances are not available and minimum purchase prices of the government do not in reality reach the poorest farmer. The dependency of agriculture on monsoon should be reduced. farmers work on lands of uneconomical sizes. 2 . Karnataka and Maharashtra. Indian agriculture is dependent on monsoon. debt cannot be attributed as the only cause for farmer suicide. as one state face severe drought. such regional imbalances can be managed by effective utilization of water resources throughout the country. India is an agrarian economy and close to 70% of the population still depends on agriculture for its livelihood. Water management should be made more effective through inter-state cooperation.

monitoring is also needed to ensure that the farmers are using the funds for the right purposes. As has been mentioned earlier. 3 . The big land owners in most places do not help small and marginal farmers. Making institutional finance available to every farmer is another important solution to save the farmers from debt traps of money lenders. Agriculture should be approached professionally and not as a traditional occupation. there cannot be one single and most effective solution to prevent the suicides of farmers. it should be made hassle free and easily accessible to the farmers. Farmers need to be advised and guided on economical methods of cultivation. personal compensation. the small farmers can avail the economies of scale in cultivation. Small and marginal farmers should be encouraged to develop alternative sources of income and the government should take steps to provide training to the farmers to acquire new skills. If a loan taken for productive purpose should be used for production and not for consumption or social purpose. Corporate and other organisations too can play a part in helping farmers. Relief packages like debt waiver scheme. pooling of lands farmer can think of aggregating their produce. 6. Also pooling of the lands of small and marginal farmers and making a bigger chunk of cultivable land can be another possible solution. 5. In addition to above. This can be done with the formation of Producer Company.2. 4. increasing the efficiency of agricultural extension activities. The solution to the farmer's plight should be directed towards enabling the farmers to help themselves and sustain on their own. Where institutional finance is available. Through pooling of lands. General public. Besides. NGOs. Social responsibility also goes a long way to help the farmers. In addition. etc should be given as a benefit to farmers to enable them to sustain their livelihood rather than as a relief to families of farmers who commit suicide. The technological advancement in agriculture should be passed down to the farmers. provide market and improving the infrastructure also helps in checking cases of farmer suicide. 3.

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