FARMERS SUICIDES IN VIDARBHA

BY EMIL MATHEW BINNYIIIDC ECONOMICSST THOMAS COLLEGE PALA

Farmer Suicides - An issue of great concern

In recent years, suicide has been spreading like an epidemic amongst farmers in India suffering from debt and crop failure. For example, As many as 601 farmers have killed themselves in Maharashtra in the three-month span between January and March 2015. This works out to a chilling statistic of almost seven farmer suicides every day, — one suicide every three hours. Increasing incidence of farmer suicides is an issue of great concern to all. It cannot be solved without knowing the various reasons behind it. Many schemes and projects have been stated by the government to control further suicides but it didn’t help a lot. Deep study is required to control it.

THE NUMBER OF FAMERS COMMITTING SUICIDE IS STAGGERING

More than 100,000 farmers have taken their lives since 1997.

86.5 percent of farmers who took their own lives were financially indebted.

Their average debt was about $835.

On average, there has been one farmer’s suicide every 32 minutes since 2002.

SUICIDE DISTRIBUTION IN INDIA

HDI-VIDARBHA

Note: Bhandara has been sub-divided into Bhandara and Gondia districts. Similarly, Akola has been sub-divided into Akola and Washim districts. As such, the current number of districts in Vidarbha is 11.

Nagpur division(eastern)-Bhandara,Chandrapur,Gondia,Nagpur,Wardha,Gadchiroli

Amaravati division (western)-Akola,Amaravati,Buldhana,Washim,Yavatmal

REGIONAL SPECS VIDARBHA

Eastern Vidarbha: High rainfall(150cms) Tanks are present Main crop-paddy (alluvial soil) Rich in forests-tribal population Low income region Western Vidarbha:scanty rainfall(45-150cms) Mostly black soil (cotton cultivation) High income region-SC population Low forest cover Central Vidarbha:(Nagpur,Wardha,Yavatmal) avg rainfall (90-130cms) cotton., paddy, chilly etc. cultivated

Reasons for suicides

Most of the suicides were because of combination of more than one factor

MAIN REASONS

Reasons0%

1000%

2000%

3000%

4000%

5000%

6000%

7000%

8000%

9000%

10000%Chart Title

Indebtedness Eco Downfall Crop failure Status changeHealth issues Family probs Marriages Addiction

MAIN PROBLEMS INDIAN FARMERS FACE

Credit related issues-Adequate and timely credit is not given and there are undue delay in dispensation of credit (A.P, Kerala, Madhya Pradesh, Tamil Nadu, Tripura)

Scales of finance-The scale of finance fixed by the authorities is inadequate as the farm labour has become costly.

MAIN PROBLEMS INDIAN FARMERS FACE

Documentation and Security norms-Some of the farmers has expressed unhappiness about the security norms and the documentation process.

Small artisans/self employed persons not being able to acces bank credit due to stringent collateral security norms.

Marketing related issues-There is a huge difference in

retail price and farm gate price and the same should be plugged through appropriate market intervention. The support prices for various crops are not announced in the beginning of the season and future trading in agricultural produce is not encouraged which prevents Farmers’ planning agricultural operations.

Market stabilization and intervention should be ensured by Government to encourage the farmers to increase productivity of their farms. (Gujarat)

Crop FailureCrop failure is another main reason for farmers to commit suicide. Following are the various reasons of crop failure:-Disruption in regular rainfall cycle since 2001. Long

dry spells, deficient monsoon.Single crop a year.Cotton the dominant crop. Improper irrigation.Yield limited by rain, but regular rise in cost of input

lowered margin of profit.Volatility in market price further lowered return.

OVER DEPENDENCE ON THE MONSOONS

Break down in the meteorological cycle of rainfall.

93% of area under dry land farming. Which means, totally dependent on the rainfall.

LACK OF PROPER IRRIGATION 98% of farmers having committed

suicides had absolutely no irrigation facilities.

GREEN REVOLUTION

EXPENSIVE TECHNOLOGIES

It is too risky to adopt expensive technologies.

UNCERTAINTY OF AGRICULTURAL ENTERPRISE IN INDIA

RISING COSTS OF CULTIVATION

The price for inputs started to rise it resulted in the rise in the cost for cultivation.

NEUTRAL SEEDS

The seeds which the private sector brought in are called as neutral seed or dummy seed because it makes the land neutral and moreover it doesn’t support the cycle of repeated sowing.

Giant corporates work with greedy Governments to

introduce Genetically Modified Crops (GMC)which put

a lot of unwanted Financial loads on farmers.

Farmers do not get the support of society and government to face bad economic situations and they end up their lives.

LOAN WAIVER POLICY

“the waiver helps only if the loan has been taken from a government-backed institution, but most farmers in Vidarbha borrow from moneylenders at the start of the sowing season to buy seeds.” - Satish Nandgaonkar

“WOUNDS THAT MORAL UNIVERSE. IT TELLS THE FARMER NOT TO BOTHER TO REPAY HIS NEXT LOAN, BECAUSE, WHO KNOWS, ANOTHER PARTY WILL BE IN POWER AND IT TOO WILL CANCEL HIS DEBTS. WHAT MESSAGE DOES THIS SEND TO THE HONEST VILLAGE WOMAN WHO STRUGGLES EVERY WEEK TO REPAY HER LOAN?” - GURCHARAN DAS

WHAT HAPPENS TO THE FAMILIES AFTER A FARMER COMMITS SUICIDE?

Farms are confiscated due to inability to pay back high interest loans.

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.

GOVT. SCHEMES

SHETKARI BAZAAR The govt. of Maharashtra has decided to set

up shetkari bazaars in the state. Following are the objectives of shetkari bazaar : -

To help farmers to get the reasonable rates to their produce.

To benefit consumers by giving them fresh produce at reasonable prices.

Immediate value realization of the produce to the farmers without any deductions.

To provide produce in appropriate weights and measures to consumer.

To bring Producers and Consumers together to avoid chain of middlemen.

REASONS FOR FAILURE OF GOVT. SCHEMES

Farmers' demands were not taken into count while preparing the relief package. Neither were civil society organizations, local government bodies, panchayats etc consulted.The relief packages were mostly mixture of existing schemes. Apart from the farmer helpline and the direct financial assistance, there was scarcely anything new being offered. The farmer helpline did not give any substantial help to farmers.The basis for selection of beneficiaries under the assistance scheme was not well-defined. Also, type of assistance to be given led to problems like a farmer needing a pair of bullocks getting a pump set and vice versa.Awareness regarding the package was also low.

STATISTICS ON FARMER SUICIDES

Age Group of the suicided farmers in Vidarbha

1.46

35.12

51.71

11.71

0-20 yrs

20-39 yrs

40-59 yrs

Above 60 yrs

Age Group of the suicided farmersThe percentage revealed that the maximum farmers were belonging to the age group when the person usually has responsibility of family.

Cropping Pattern of the farms of the suicided farmers in Vidarbha

35.78

33.16

8.11

8.71

3.94

2.39

0.390.77

0.041.754.480.49

CottonSoybeanTurKh. JowarMungUdidSunflowerGroundnutWheatGramSafflowerOther Crop

Cropping Pattern of the farm of the suicided farmers in Vidarbha

Cropping Pattern of the farm of the suicided farmers in Vidarbha

Distribution of Farmers as per size of holding

16.59

32.6830.73

16.593.41

0 to 0.99

1 to 1.99

2 to 3.99

4 to 9.99

above 10

Average Size of land holding of the farmers suicided in VidarbhaThe average size of land holding is farms of the suicided farmers in Vidarbha was 2.68 ha per farm. The average

land holding per farm were highest in Washim i.e. 4.15 hectares. The number of farmers in havening land between 1 to 1.99 and between 2 to 3.99 were highest i.e. 32.68 and 30.73 percent respectively.

Share of Irrigated land in total land of the farmers suicided in Vidarbha

2.540.00

8.842.51

22.61

7.9811.59

6.17

0.005.00

10.0015.0020.0025.00

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Nagpu

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Akola

War

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Vidarb

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District

Pe

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Income and Expenditure of the family of the suicided farmers in Vidarbha

3627.84

20808.06

7887.93-25068.15

-30000

-20000

-10000

0

10000

20000

30000

Net Income Peryear regularfamily

expenditure

Per yearexpenditure on

Events

Gap betweenNet Return and

Annualexpenditure

Particulars

Inco

me

and

Exp

endi

ture

Costs and Returns of different enterprises of the families of the suicided farmers in Vidarbha.

The net income was Rs. 3627.84 per annum . per annum regular expenditure was Rs.20808.06 and expenditure on events was Rs.7887.93. (total Rs.28695.99). It indicates the expenditure per annum is more by Rs. 25068.15 over the net income per annum.. If farmers uses recommended expenditure i.e. Rs 37140 per family,

the gap between income and expenditure will be Rs.33512.16.

Gap between recommended expenditure and present net income of the family of the suicided farmers in Vidarbha

3627.84

37140

-33512.16-40000

-20000

0

20000

40000

60000

Net Income Per annumrecommended

expenditue

Gap between Net Returnand Annual expenditure

particular

Expe

nditu

re a

nd

Inco

me

Loan Status of the Farmers Suicided in Vidarbha.42.81 percent loan cases were from cooperative bank, 18.96 percent were from

relatives and 18.68 percent were from nationalized banks in Vidarbha. On average debt per head in Vidarbha is Rs. 50730.25. The percentage of debted farmers in Vidarbha is 97.07. the debt per head was highest in Akola i.e. Rs 65710.28, followed by Washim Rs.52483.17. Regular family expenditure is significantly correlated with loan in Vidarbha.

Sources of the loan taken by the farmers suicided in Vidarbha (Percent)

18.65

42.81

15.60

18.96

3.98

Nationalised Bank

Cooperative Bank

Private Moneylender

Relatives

Other

Debt per head of the suicided farmers family in Vidarbha (Rs.)

37487.18

45961.1150098.4352483.1751685.13

65710.28

51686.46 50730.25

0

10000

20000

30000

40000

50000

60000

70000

District

Deb

t

Debt per head

Educational Status of the suicided farmers in Vidarbha

11.71

19.51

19.02

41.95

7.80

Illiterate

Prinmary School

Middle School

High School

Collage

Educational Status of the farmers suicided in Vidarbha The highest percentage of the educational level of suicided farmers in Vidarbha was high school level i.e. 41.95 percent farmers were high school educated.. Among the districts, farmers in the Amravati were mostly high school educated (58 percent).

Common features in majority of suicides

91-94 % of suicides are by family heads.

91-97 % of those who committed suicide are males.

84 to 89 percent are married.

98 percent had no access to irrigation.

ON AVERAGE, ONE INDIAN FARMER COMMITTED SUICIDE EVERY 32 MINUTES BETWEEN 1997 AND 2005. SINCE 2002, THIS HAS BECOME ONE SUICIDE EVERY 30 MINUTES.

IN MAHARASHTRA ALONE, THERE WAS ONE SUICIDE EVERY THREE HOURS. IT GOT EVEN WORSE AFTER 2001. IT ROSE TO ONE FARM SUICIDE EVERY 48 MINUTES IN THESE BIG FOUR STATES.

THE BIG FOUR HAVE TOGETHER SEEN 89,362 FARMERS’ SUICIDES BETWEEN 1997 AND 2005, OR 44,102 BETWEEN 2002 AND 2005.

VIDARBHA REMAINS A GRIM STATISTIC. ONE SUICIDE IN EVERY SEVEN HOURS.

MORE THAN HALF OF THOSE WHO COMMITTED SUICIDE WERE BETWEEN 20 AND 45, THEIR MOST PRODUCTIVE YEARS.

CONCLUSIONS farmers in India are paying more prices for the inputs like

seeds,pesticides, fertilizers, electricity, water, and labor whereas the prices has grown down

As the lower societies have gone much beyond their capacities to bear with the globalisation. We have gone in for internal reforms first rather than external directly

due to regional disparities Vidarbha region remains neglected in industrialization and FDI attraction

more and more private parties have entered the market and captured most of the business who manipulate prices and capture market

As an impact of globalisation countries like Sudan, Israel, Egypt sell their quality crops at much cheaper rates in India and abroad

farmers have started converting the agricultural land into non agriculture for the urban usage farmers have started converting the agricultural land into non agriculture for the urban usage

Maharashtra’s cotton monopoly scheme has failed to render the expected desired results

SUGGESTIONS

innovations and effective implementation of govt policies suiting to the new market needs and fast changing grim scenario

Import duties on agri products to be raised Various subsidies, ensured loan disbursement from the

nationalized banks at comparatively lower rates be availed to those cotton growers.

local bodies should take over the supply of quality seeds and required inputs. Further the Gram Panchayat should purchase tractors and advanced equipment to give them on rental basis

cooperative farming should be encouraged effective programme of water conservation, stopping

degradation of soil, increased irrigation facilities and the electricity supply at subsidized rates

Educated children of farmers’ effective programme of water conservation, stopping

degradation of soil, increased irrigation facilities and the electricity supply at subsidized rates

efforts should be taken to improve the quality of the soil Since 85% of the total land under the crop production is dry

and barren more dams, canals, wells, tube wells be constructed

cooperative activity, programme similar to that of “Kutumbshree” of Kerla state

More and more number of small and large industries be developed in the region, encouraging the industrialization through subsidies and incentives to provide employment avenues

Provision of e : choupals (Electronic Market) and electronic auction halls which are connected to national, international market places in each district

Relief funds to be better managed Backward & Forward linkages be developed like imp in

warehousing Elimination of middlemen & touts from the market chain Last and the most important factor is remunerative prices for

the agricultural produces be availed to the farmers by Govt

FARMER’S DEMANDS

Immediate Measures Immediate compensation for

crop failure Remunerative prices, direct

procurement from farmers Modify export/import policies

and tariffs in favour of Indian farmers

Provide ex-gratia and loan repayment support for all families of farmer suicides in time-bound manner

FARMER’S DEMANDSAddressing Root Causes Price Compensation system for all food

crops: when MSPs or market prices are less than Target Price (Cost of Cultivation + 50%), the difference should be paid directly to farmers

Guarantee minimum living incomes to all farmers

Promote sustainable agriculture which reduces cost of cultivation and crop risk

FARMER’S DEMANDS

Addressing Root Causes (contd) Comprehensive rainfed agriculture

mission based on diverse cropping systems, protective irrigation and livestock systems

Bank credit to all farmers with adequate scale of finance

Effective crop insurance to cover all crops and all farmers

Inclusion of tenant farmers in all support systems

Measure suggested to stop the farmers suicides

  The farmers suggested some measure to improve the economic condition and to stop the suicides

1) Proper and stable price to their produce 93%

2) Exempted from loan 87%

3) Creation of irrigation infrastructure 49 %

4) Employment generation 42 %

5) Low cost of input chemicals. 42 %

SEVEN STEP FORMULA(BASED ON RADHAKRISHNA COMMITTEE REPORT)

Debt recovery suspension by centre 20 year credit line to banks State should make farming viable Recogonise the role of NGOs and

creation of FSHG Open up the Vidarbha region to

corporates but with riders Help corporates earn carbon credits State’s role in farmer corporate dispute

settlement

Conclusion The indebted farmers were 97 percent. The net income from all recourses was negligible

around Rs 3627.84 per annum per family The family expenditure was around Rs.32000 per

annum per family. The price received per quintal was not stable and not

covering the cost of cultivation.

Policy Implications The farmer may be exempted from loan. The efforts are needed to get proper and stable price

for his produce . The basic infrastructure can be created to increase

income from different sources. Income from subsidiary enterprises can be increased

for the upliftment of the economic condition of farmers to cover the recommended expenditure per family.

THANK YOU