The growing number of farmer suicides is alarming and deeply saddening. Agriculture is the backbone of any economy and especially in a nation with a billion plus population to feed, this condition of farmers is regretful and unfortunate. What is behind their plight? Why they are driven to the brink of bankruptcy? What makes them end their lives and why do their crops fail?
In the prevailing scenario, the small and marginal farmers are worst affected falling prey to the vicious trap of private loan sharks. Few reasons for this pitiable condition are summarized as below
1. Failure of institutional finance by Govt recognized banking system despite RBI guidelines for subsidized finance at 7percent per annum, by allocating upto 18percent of their total lending for agrisector. But the whole system of working is steeped in corruption and mismanagement forcing the farmers falling into the trap of private moneylenders.
2. Non recognition of self help groups as financial institutions which could have helped to remove the dependency on unrecognized moneylenders.
3. Absence of an integrated farming system policy.
4. Linking of agriloans to gold mortgage by the banks ( which should be delinked)
5. Need to ensure remunerative price for farmer's produce. Take for instance the sugarcane factories that are not crushing the sugarcane in time and payment to farmers are much delayed.
The bigger question however is how can the condition of farmers be improved and how can they be rescued from this debt-trap. here are some recoomendations for the same:
In the prevailing scenario, the small and marginal farmers are worst affected falling prey to the vicious trap of private loan sharks. Few reasons for this pitiable condition are summarized as below
1. Failure of institutional finance by Govt recognized banking system despite RBI guidelines for subsidized finance at 7percent per annum, by allocating upto 18percent of their total lending for agrisector. But the whole system of working is steeped in corruption and mismanagement forcing the farmers falling into the trap of private moneylenders.
2. Non recognition of self help groups as financial institutions which could have helped to remove the dependency on unrecognized moneylenders.
3. Absence of an integrated farming system policy.
4. Linking of agriloans to gold mortgage by the banks ( which should be delinked)
5. Need to ensure remunerative price for farmer's produce. Take for instance the sugarcane factories that are not crushing the sugarcane in time and payment to farmers are much delayed.
The bigger question however is how can the condition of farmers be improved and how can they be rescued from this debt-trap. here are some recoomendations for the same:
1. Agriculture has a significant role in socio-economic fabric of India.
Agriculture and allied sectors constitutes for 13.7 percent of GDP.
Indian agriculture is diverse, from impoverished village farms to
developed farms with modern techniques. Small and marginal Farmers constitute 80 percent of Indian farmers. Small farmers hold 2-5 h.a.and Marginal farmers less than
2h.a. agriculture land only. A report from NCEUS says that it is
imperative to protect the interests of small farmers through measures
that promote and stabilize income,reduce risks increase profitability by
improving availability and access to inputs,market and
credit.
a-Poor rural roads
b-Poor irrigation systems
c-Regional floods
d-Inadequate farming
practices
e-Lack of cold storage
f -Harvest spoilage (30 percent farm
produce goes waste)
g-Lack of organized retail (A census establishes that Indian farmers receive just 10-23percent of the price Indian consumer
pays. The difference goes to losses,inefficiencies and middlemen. Whereas
farmers in developed economies get 64-81 percent of what a cosumer pays for the produce.)
3 -Role of Government: It is essential for Indian Govt to build productive ,competitive and diversified agri-sector and facilitate non farm entrepreneurship and employment policies. A census of
year 2012 says that 11.2 percent of all suicides in India involved
farmers only. The main reasons were found to be monsoon failures, debt
burden/ govt policies,personal and family problems.
4. Extension Program and Services of Agri universities: Each university has
got a dept. for extension programmes which are basically established for
agri research, educating farming communities to use agricultural
technologies for social and economic development of farmers. There are
farm media and mobile media services but all these are found on.papers
only with out much impact on ground.
5. Suggestions to farmers: Small and marginal farmers should themselves
come forward to improve their situation not depend upon mercies of
others. They should believe in themselves and realize that 'God helps them
who help themselves'. They can form village cooperatives and channelize all their efforts collectively to usher in benefits to improve their condition.
Farmers are true annadatas or the provider of food for the nation and the world. They must not starve, only then they can satisfy the hunger of people. We must do something substantial for them, else we are heading towards an imminent doom, very soon.
Picture Source:DNA India.
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