Why Are Indian Farmers Driven to Suicide by Debt? Understanding the Crisis and Its Causes

Why Are Indian Farmers Committing Suicide Over Their Debts?

Indian farmers are facing a crisis that is leading them to take drastic measures such as committing suicide due to their mounting debts. This issue has been a significant concern in India for several years, with many farmers feeling overwhelmed and trapped by their financial burdens.

The agricultural sector in India faces various challenges, including unpredictable weather patterns, low crop prices, and lack of access to credit and resources. These factors contribute to the financial distress experienced by farmers, driving some to the point of desperation. The government and other stakeholders need to address this issue urgently to prevent further loss of lives and livelihoods in the farming community.

Regards.

To stop the suicide cases, the government should abolish the microfinance companies that charge more than 36% interest rates and do not provide proper guidance to the farmers. In India, more than 1,000 microfinance companies are operating illegally, with one of the worst being BASIX. Therefore, by banning these companies, the percentage of suicide cases may reduce.

Thank you. Microfinance is one main reason. I hope distress in agriculture, compounded by the lack of water to save standing crops, resulted in the suicide of some farmers.

The fact that most of them have to borrow from moneylenders at high rates of interest in order to cultivate crops tells us about the deeper crisis in agriculture, where one cannot even put in his own savings after doing agriculture for many years. Crop failure is also a reason.

Please share your views.

Dear Sijish,

It's a sad query coming from learned people like you. I hope you might know the specifics of Indian farmers—fragmented holdings, rain-fed agriculture, uncertain rainfall, pests, unremunerative prices for produce, and an exploited lot, among other challenges. You are also aware that most government schemes aimed at helping poor farmers do not reach them due to corruption and nepotism, which are rampant in India. Lakhs of crores of rupees allocated in Central and various state budgets are eaten away en route. Indian farmers are victims of all these issues, finding nowhere to go for help and often resorting to suicide.

I must mention the proposed "Direct to Eligibles" bank accounts by the Central Government—truly innovative. I hope this initiative will work for them. Crores of people live on meager holdings of one to two acres of undeveloped lands for their livelihood. When crops fail, there is no return, no revenue, and they are pushed to local vendors and lenders who charge exorbitant interest rates. Unable to repay, they fall into perpetual debt, affecting their families and lenders. What happens next?

These challenges are seen even in states like Tamil Nadu, where PDS rice is sold at Rs. 2/kg for some Below Poverty Line families, making it practically "free rice." I don't think their lives will improve in the foreseeable future. God save them.

Regards,
Kumar S.

Analyzing the Challenges Faced by Farmers

While discussing farmers, we often overlook a detailed analysis of their actual problems, and few organizations have attempted to do so. There is a lot of talk and information, but someone should take this on as a practical project, as there are many hidden facts within. Our current government policies are one factor, along with the ease and growth of the economy for all being a second reason. Additionally, the irrigation and other support systems to expand agricultural lands are a third reason. Last but certainly not least, the lack of sufficient manpower for agriculture and farming is a significant issue.

A few days ago, we watched SATYAMEVA JAYATE, where we learned about organic farming and its benefits. However, have we taken further steps to raise awareness since that show? The fundamental question remains: are we only curious about the topic, or have we initiated any projects in the aforementioned areas?

To be candid, traditional farming practices are disappearing, and now we mostly witness trading within market committees where farmers have minimal say in the prices set in retail markets. Over time, farmers have come to expect meager incentives or packages, without actively seeking solutions to their issues at the local level.

In Ahmednagar District, one Gram Panchayat has emerged as a model village, setting an example for all. However, how many other Panchayats or villages have adopted similar methods? As a farmer myself, I acknowledge the importance of addressing this topic on this platform. I must mention that I own several acres of uncultivated agricultural land for the past seven years due to the unavailability of an irrigation system. The lack of education and literacy led me to explore other options for survival, eventually leading me to become an Administrative Officer and now working in the corporate sector.

While I appreciate my current position, I long to return home to provide practical awareness by engaging in farming. I hope to seize this opportunity soon.

Regards,
Jayant