India is an agrarian country with around 70% of its people depending directly or indirectly upon agriculture. But farmers’ suicides in India is worrying.
As per the Central Government despite a multi-pronged approach to improving income and social security of farmers, over 12,000 suicides were reported in the agricultural sector every year since 2013. Farmer suicides account for approximately 10% of all suicides in India. (Reference: TOI)
There is no denying that the menace of farmer’s suicides exists and runs counter to the aspirations of reaping benefits of our demographic dividend. In this article, we are analysing the farmers’ suicides in India and its related data, the reasons and the way forward.
Farmers’ Suicides – What do the facts say?
- The list includes farmers-cultivators and agricultural labourers.
- Seven states account for 87.5% of total suicides in the farming sector in the country. The states are Maharashtra, Karnataka, Telangana, Madhya Pradesh, Chhattisgarh, Andhra Pradesh and Tamil Nadu 606.
- Both marginal farmers and small farmers are committing suicide.
- Maharashtra is the worst affected state.
- Ironically, Punjab, which benefited most from the Green Revolution, also presents a depressing picture of farmer’s suicides in India. Between 1995-2015, 4687 farmers’ suicides have been reported from the state of Punjab of which 1334 from one Mansa district alone.
What are the reasons behind farmers’ suicides in India?
Scholars have given various reasons such as monsoon failure, climate change, high debt burdens, government policies, mental health, personal issues and family problems among the reasons for farmers’ suicides in India. Let’s analyse.
- The surge in input costs: A major cause of the farmers’ suicides in India has been the increasing burden on the farmers due to inflated prices of agricultural inputs. The culmination of these factors is seen in the overall increase in the cost of cultivation, for wheat, the cost at present is three times than it was in 2005.
- Cost of chemicals and seeds: Be it the fertilisers, crop protection chemicals or even the seeds for cultivation, farming has become expensive for the already indebted farmers.
- Costs of Agricultural equipment: The input costs, moreover, aren’t limited to the basic raw materials. Using agricultural equipment and machinery like tractors, submersible pumps etc adds to the already surging costs. Besides, these secondary inputs have themselves become less affordable for the small and marginal farmers.
- Labour costs: Likewise, hiring labourers and animals is getting costlier too. While this may reflect an improvement in the socio-economic status of the labourers, driven primarily by MGNERGA and hike in minimum basic income, this has not gone too well with boosting the agriculture sector.
- Distressed due to loans:
- NCRB data points out that in 2474 suicides out of the studied 3000 farmer suicides in 2015 the victims had unpaid loans from local banks. This is clear enough an indication for drawing correlations between the two. Whether or not the banks had been harassing them, however, is a long-drawn debate and needs more specific empirical evidence.
- Moreover, a shift away from the usual trend also revealed that of the loans taken by these farmers, only 9.8% were loaned from money-lenders. Thus the pressure or muscle-power of money-lenders could be far from being a major driving force, as is otherwise perceived.
- Another source of strong linkages between farmer suicides and indebtedness is reflected from the spread of the two. While Maharashtra had 1293 suicides for indebtedness, Karnataka had 946. Note that both these states saw one of the highest incidences of farmer suicides as well as indebtedness.
- Lack of direct integration with the market: Although initiatives like the National Agricultural Market and contract farming are helping integrate the farmers’ produce directly with the market, cutting the role of intermediaries, the reality is still lagging behind.
- Lack of awareness: The digital divide, as well as the literacy gap, has made the marginal and small farmers particularly vulnerable due to their inability to utilise the positives of government policies. This is reflected in the continued unsustainable cropping practices – like cultivating sugarcane in water-deficit regions.
- Water crisis: The concentration of these suicides in the water-deficit regions of states like Maharashtra, Karnataka is a manifestation of how the water crisis and thereby failure to meet production demands have intensified the menace. This is particularly true in the backdrop of continued failed monsoons.
- Interstate water disputes: What has added to the already prevalent crisis is the unwillingness to cater to each other’s water needs amongst the states. A case in point is the recently resurfaced Kaveri dispute that saw Karnataka and Tamil Nadu battle out water shortage both in and outside the tribunal even to the extent of non-compliance with the tribunal award.
- Climate change has acted as the last nail in the coffin by resulting in furthering of the uncertainties associated with the already uncertain monsoon system and hence agricultural production. While incidents like flash floods have led to crop losses, deferred monsoons have seen production shortfall year-in and year-out
- India’s urban consumer-driven economic policies: The political economy of India is driven more by urban consumers than rural producers. This is reflected in the urgency to impose price controls in case of price rise (imposing Minimum Export Prices, bringing items under Essential Commodities etc) and a lacklustre withdrawal once the price is under control. Contrast this with how we have been imposing a minimum import price to secure our steel sector. This differential treatment to primary sector also limits profit margin and thereby hinders farmers’ chances of breaking free from the cycle of indebtedness.
- Loan waivers instead of restructuring, re-investment measures: Our approach of handling farmer indebtedness and hence farmer suicides have been appeasement politics like the recent move by the UP government to waive off Rs 36000 crore worth of loans. Surprisingly this comes at a time when the agricultural yield is expected to be better in the wake of a good monsoon.
- In essence, the factors sum up to crop failure, unsustainable production and subsequent farmer indebtedness leading to failure of strengthening the economic state of the farmer as the driving force behind these suicides.
Is Suicide a matter of economics?
The National Mental Health Association of the USA states that “No matter the race or age of the person; how rich or poor they are, it is true that most people who commit suicide have a mental or emotional disorder”. Suicide is not a matter of economics.
This is well supported by the data released by World Health Organisation in 2011: while the suicide rate in India, an agrarian economy, was 13 per 100,000; that of industrialised, rich countries were often higher or comparable– South Korea – 28.5, Japan – 20.1, Russia – 18.2, USA- 12.6, Australia- 12.5, and UK-11.8. (Reference – Hindustan Times)
Responses to farmers’ suicides
Some of the major relief packages and debt waiver schemes announced by the government are summarised below:
- 2006 relief package – primarily aimed at 31 districts in the four states of Andhra Pradesh, Maharashtra, Karnataka, and Kerala with a high relative incidence of farmers suicides.
- Agricultural debt waiver and debt relief scheme, 2008 – Agricultural Debt Waiver and Debt Relief Scheme in 2008 benefited over 36 million farmers at a cost of 65000 crore rupees (US$10 billion). This spending was aimed at the writing of part of loan principal as well as the interest owed by the farmers.
- 2013 diversify income sources package – In 2013, the Government of India launched a Special Livestock Sector and Fisheries Package for farmers suicide-prone regions of Andhra Pradesh, Maharashtra, Karnataka and Kerala. The package was aimed to diversify income sources of farmers.
Apart from these Central Government initiatives, there are many efforts from the state governments side like Maharashtra Bill to regulate farmer loan terms, 2008 and Kerala Farmers’ Debt Relief Commission (Amendment) Bill, 2012.
Way Ahead
- Policies of integrated pest management to prevent pest damage – An all-inclusive approach that integrates biological, chemical, mechanical and physical methodology should be used to prevent crop damage. In this case, seeking inspiration from Vietnam’s no-spray early rule (predatory beetles are sustained for biological pest control, cutting pesticide requirement by 50%) can be a good way to start.
- Lower fertilizer costs – Helping fertiliser industries cut down on costs, through internal funding rather than external borrowing should lower the input costs.
- Leveraging advancements in Science and Technology by ensuring that state seed policies focus on new genotypes, contract farming and sensitization to adverse weather conditions.
- Precision farming techniques like SRI (Systematic Rice Intensification) must be encouraged.
- Farm equipment policy must focus on imported equipment to provide for cheaper local manufacture, some incentives like grant of duty credit scrips may be tried.
- Subsidies must be rerouted towards capital generation and entrepreneurial Custom Hiring Centers (CHCs) and the implementation must be ensured in a timely fashion.
- Corporate Social Responsibility (CSR) must be encouraged in the agricultural sector, particularly towards capacity-building, skill development and the establishment of CHCs.
- Institutional financing must also be ensured to be adequate and inclusive rather than catering to the elites within the farming community.
- Cooperative farming must be promoted amongst small and marginal farmers to ensure that they are not left lurking while the big farmers reap the benefit at their cost.
- Doubling the farmer income by 2022 is a healthy aim, but loan waivers can’t be the answer. Instead, sustainable agriculture that thrives on re-investment & restructuring is the way ahead. The role that the state has been playing is one of emancipation, but what the primary sector and the farmer needs is empowerment.
- Direct interventions:
- Early-warning signals for unsustainable loans to launch a 2-pronged approach catering to both the burdened farmers as well as stressed banks.
- Options for restructuring loans must be used wherever possible.
- Insurance claim settlements must be speedy and just.
- District wise list of indebted farmers and efforts in de-stressing them through counselling and other alternative mechanisms should be tried.
- NABARD and local administration must take control of the situation and play a greater role in curbing farmers’ suicides.
- Innovative efforts like Crowdfunding can be employed through the involvement of Civil Society Organizations (CSOs).
- Efforts like Agro-Climatic zoning, education through DD Kisan, Soil Health Card Scheme, various crop insurance and facilitative schemes like PM Krishi Sinchayi Yojana will go a long way in helping out
- Community-led awareness must be taken employing a role model approach highlighting progress of farmers who have benefited from sustainable & climate-tailored agricultural practices
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Article by: S S Naik, with inputs from ClearIAS Team
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A Look through the mist
Politician’s baits of “income tax exemption” and “bad loan waivers” will not end woes of Agriculture Sector :: Daya Sagar
Rural India has been been made to live in the illusion that government has exempted the agriculture income from direct taxes ( income tax ). It is more due to bad socio economic environment in rural India as well as due to low earnings from agriculture that the population of cultivators employed in the agriculture sector in India has declined from 71.9 percent in 1951 to 45.1 percent in 2011.
The politicians have been exploiting the innocence of the poor indian farmer in the name of income tax exemption so that the rural india falls in their ‘vote’ trap. Where as nearly whole lot of the the agriculturalist families in India will not fall in the income tax bracket as per the present standards.
Income tax exemption has given no real benefit to the common indian farmer and instead there may be many rich farmers as well as some people with unfair earnings from other sources who may be avoiding payment of income tax on their un fair income by showing such income as agricultural income. There is fair case for governemnt of India to withdraw the income tax exemption on agricultural income. And if done so no genuine farmer will be hit by such action and instead many may be checked from avoiding tax payment on unfair income in the name of agricultural income.
As per the statastics released by Registrar General of India (2011) out of the total 121.08 Cr population of India ( say nearly 24 Cr families) the rural population amounted to 83.37 Cr ( say 16.6 Cr families – 68.9% of the total population ). The total workers were listed as 48.17 Cr ( say nearly 2 per family) and out of that 26.31 Cr were Cultivators and Agricultural labour i.e 54.6 % of the total working population. Of the total 26.31 Cr population working on agricultural lands 14.43 Cr ( 54.9%) were landless agriculture labourers and only 11.48 Cr population ( just 45.1%) has own land.
The per hectare productivity of rice during 2000-01 in India was 19.13 Qtl and 31 Qtls ( 2009) where as in Japan it was 64.10 Qtl kgs. and in China it was 63.20 Qtls (2000-1) & 65 Qtls ( 2009). Similarly, the productivity of wheat was 72.40 qtl.(2001) & 74 Qtl( 2009) in France and 72.50 Qtl (2001). in U.K while in India it is much lower at 25.53 Qtl ( 2000-1). per hectare. & 29 Qtls ( 2009) and in China it was 47 Qtls(2009). During the fertilizer used in China 927 units as against 1337 units used in India. The data itself speaks what performance indian agencies have given on ground as compared to China. India has to match China in efficiency and production units instead of playing sentimental cards like simply asking for boycotting the Chineese products even if they cost 1/3rd as compared to indian product to a sweating common man. Instead government must call on the industrial sector and the public service sector ( government machinery / public servants) to improve upon their money use efficiency so as to lower the costs of inputs and products of common consumption, China has lesser agricultural land than India but produces much more food grains than what India produces , one would ask why is it so inspite of the fact that the indian farmer works so hard ?
The farmers’ unrest across the country, and particularly even across BJP-ruled States should not be taken by surprise. Narendra Modi in 2014 promised the farmers in the name of “acchhe din” considering doubling of farm incomes in five years if voted to power by atleast ensuring MSPs ( minimum support prices for agri produce ) 50% more than the costs as recommended by the Commission like the one headed by MS Swaminathan. Farmers have been waiting for these promises to be fulfilled.
No doubt the prices of agriculture produce need be sufficient for the honorable survival of the rural community. But it can also not be overlooked that the agricultural farm labour too has to bear the burden of the minimum support prices fixed for the farm produce and hence would demand more labour from the producer . Therefore simply increasing the minimum procurement costs (MSPs) would not be a total solution. So, it is also high time for the non governemntal gaencies / social activists/ indian civic society/ agriculturist families / rural india to ask the government even for withdrawing the income tax exemptions and instead demand from the government reduced indirect taxes , reduction in cost of farm inputs and provisions like quality education & health cover at the village level. How long the Politicians will be allowed to take refuge for their failures on these accounts under the ‘umbrella’ of “income tax exemption” and regular promises of “bad loan waivers” for agriculture sector on ‘election eves’ ? .
( Daya Sagar Sr Journalist and a social activist [email protected] 9419796096)
A Look through the Mist
Income tax exemption on Agriculture income has done less good and more harm to Indian Farmer ::
Daya Sagar
Some surveys have said that four of every ten of the India’s farmers disliked farming, and would prefer another occupation if given a choice. According to the Agriculture Census, the total number of operational holdings in India numbered 138.35 million with an average size of only 1.15 hectares. Of the total holdings, 85 per cent are in marginal and small farm categories of less than 2 hectares. Expressing concern over the sustainability of small farms, Union Agriculture Minister Radha Mohan Singh had said on 13-02-2016 while speaking at the national convention on challenges in agriculture and future strategies for sustainability at Jabalpur that 91 per cent of the total farm holding would belong to small and marginal farmers by 2030. That is ‘what’ the politician managed Indian economy has given to Indian farmer over last 7 decades under the slogans of ‘Jai Kisaan’.
A very large majority of the farmers in India are small and marginal farmers, often working on landholdings that are less than one hectare or maximum between one and two hectares. Nearly 57.8 percent of India’s rural households are engaged in agriculture. Of them, over 69 percent possess or work on marginal landholdings, and 17.1 percent, on small landholdings i.e 86.1 % farmers owning lands are small & marginal farmers ( owning lands less than 2 hectares ) .
It is not out of place to mention here that about 72.3 percent of India’s rural households work as either small cultivators or agricultural labourers in the agriculture sector as per the latest Census of 2011 i.e about 63 Cr Indian population ( 2011). So, there is all reason to ask who gets benefited due to income tax exemption for agriculture income ?
With the present costs of production even a farmer who individually owns 8 to 10 hectares ( 20 to 25 Acres of agricultural land , there number may be around just 0.7% as per 2011 data and there too income may be shared by even more than one person) , what to talk of less than 2 hectares ( less than 5 acres), will not have net agriculture income of Rs.300000 <60Yrs – 350000 60Yrs Lakh per anum i.e Rs.25000 to Rs.29000 per month after deduction of all input costs and hence will not come in the income tax bracket.
To quote going by the information released by Commission for Agriculture Costs and Prices Deptt of Agriculture & Cooperation Ministry of Agri GOI in its reports even a farmer of Punjab where the crop yield could be taken as high as 50.17 Qtls / hectare for wheat ( 2013-14) and 38.38 qtls/ hectare for Paddy (2014-15) going by the respective minimum support prices (MSPs) fixed for wheat ( 2013-14) and paddy ( 2014-15) ie. Rs.1400/ qtl and the respective costs of production { C2= All actual expenses in cash and kind incurred in production by owner+ rent paid for leased-in land + imputed value of Family Labour and interest on value of owned capital assets (excluding land) + rental value of owned land (net of land revenue) } as Rs 1123.58/qtl for wheat (2013-14) and Rs. 1266.28/qtl for paddy ( 2014-15) the annual income of 85 % of the cultivators ( small and marginal farmers owning less than 2 Hectare i.e 5 Acres of land ) would have been just around Rs. 37900 and even that of farmers owning 10 to 20 hectares of land ( 25 to 50 acres ) it might have been just from Rs.2 Lakh to Rs.4 Lakh . The income upto nearly Rs.3 Lac per annum ( after savings like PPF, insurance, bonds etc) is exempted from income tax as per the present tax slabs and even for net income from 3 to 5 Lac per annum the tax rate is just 5%. So, hardly any farmer in India would come under the income tax bracket at present standards.Instead there have been regular demands for waiver of outstanding bank loans of the farmers and reports are there about the farmers committing suicide under adverse economic pressures.
So, under the present status the rural agriculturist families/ cultivators are living under false impressions that the politicians of India do care for them and have hence exempted the agriculturists from payment of income tax.Where as the fact is that all politicians have kept income tax exemption on paper just to exploit the rural voter and have done very less to increase the real income of rural india.
In case the Agricultural income is brought under income tax , a very large majority of indian farmers / cultivators with not be loaded with any additional tax burden, rather it will add to the income of the government because many who take unfair advantage of the exemption on agri income will not be able to evade income tax payment .
So, it is also high time for the agriculturist families / rural india to ask the government for withdrawing the income tax exemptions and instead demand from the government reduced indirect taxes , reduction in cost of farm inputs and provisions like quality education & health cover at the village level. Politicians have so far took refuge for their failures on these accounts under the ‘umbrella’ of “income tax exemption” and regular promises of “bad loan waivers” for agriculture sector on ‘election eves’ .
( Daya Sagar Sr Journalist and a social activist [email protected] 9419796096)
in my opinion the condition of farmers are still not good, gov is doing to improve but that is not enough, as India is agriculture based country.farmers must have more available resources to improve production rate.
more improvement is needed so that our country can grow fast.
sir please indian farmer sucide an agrian crisis feuturs
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Being farmer i can clearly prove the main cause for farmers suicide is bad rules & regulations,, especially hindu succession act . Also not reachable courts & legal process delays.. Infact these two have become hopeless sectors for farmers. other way both r murderers of farmers
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Resourceful content.this article really gives a gist of the plight of Indian farmers and their atrocious condition in Indian society .
kindly update the statistics A beginner may get confused.
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