GS Paper III– Issues related to direct and indirect farm subsidies and minimum support prices.

In 80% farmer-suicides due to debt, loans from banks, not moneylenders

Various data references:

  • According to National Crime Records Bureau’s latest farmer-suicides data, of the over 3,000 farmers who committed suicides across the country in 2015 due to debt and bankruptcy, 2,474 had taken loans from banks or microfinance institutions.
  • According to NCRB show that only 10 per cent farmers had committed suicide due to debts caused by loans taken from both banks and moneylenders — the share of loans from moneylenders under this section was 9.8 per cent.
  • According to the NCRB data, “bankruptcy and indebtedness” witnessed the sharpest spike in 2015
  • Among the states, the data showed, Maharashtra (3,030), Telangana (1,358), Karnataka (1,197), Chhattisgarh (854) and Madhya Pradesh (516) led the table.
  • Karnataka saw a more than three-fold rise in farmer suicides in 2015, as compared to 2014 when around 300 farmers ended their lives.
  • Even today, more than half the people take loans from moneylenders.
  • However, moneylenders were more flexible compared to banks and microfinance institutions.

Reasons for Farmer’s suicide:

  • Due to crop-failure.
  • other farm-related issues.
  • Debt.
  • Family problems.
  • Farming related issues.
  • Poverty.
  • Marriage related issues.
  • Drug abuse/alcoholic addition.
  • Property dispute.
  • Fall in social reputation.

Recent NDA Government Measures:

  1. 70% Cut in Monsanto’s Royalties.
  2. Pradhan Mantri Krishi Sinchai Yojana.
  3. Pradhan Mantri Fasal Beema Yojana (Crop Insurance for Farmers).
  4. Relief to Farmers in Input Subsidy.
  5. Soil Health Card.

Background-

LOCAL MONEYLENDERS are usually portrayed as the villains in India’s farmer-suicides narrative, but government data shows that 80 per cent of farmers killed themselves in 2015 because of bankruptcy or debts after taking loans from banks and registered microfinance institutions.

Sources-The Hindu, The Indian Express. Page 7