Farmer suicides: Points to consider Dr. Vishal Sarin Associate professor School of business, lovely professional university

Introduction Around 60% Indian population depends directly or indirectly upon agriculture. India ranks second worldwide in farm output. Agriculture and allied sector accounts for 13.7% of the GDP (2014) 50% of India’s workforce engaged in agriculture. Still, agriculture is demographically the broadest economic sector and plays a significant role in the overall socio-economic fabric of India. 7th largest agricultural exporter worldwide the 6th largest net importer.

Agriculture productivity in India, (Growth in average yields from 1970 to 2010) Crop Average Yield 1970-1971 1990-1991 2010–2011 Kilogram per hectare Rice 1123 1740 2240 Wheat 1307 2281 2938 Pulses 524 578 689 Oilseeds 579 771 1325 Sugarcane 48322 65395 68596 Tea 1182 1652 1669 Cotton 106 225 510 Source: FAO Statistics

A simple comparison Crop Average farm yield in Bihar in Karnataka in Punjab Kilogram per hectare Wheat 2020 NA 3880 Rice 1370 2380 3130 Pulses 610 470 820 Oil seeds 620 680 1200 Sugarcane 45510 79560 65300 Source: Mahadevan, Renuka (December 2003). "PRODUCTIVITY GROWTH IN INDIAN AGRICULTURE: THE ROLE OF GLOBALISATION AND ECONOMIC REFORM". Asia-Pacific Development Journal 10 (2): 57–72

Suicide among farmers In 2014, the National Crime Records Bureau of India reported 5,650 farmer suicides.

Reasons Reasons for farmers suicides. (in 2007) Percent (of suicides) Failure of crops 16.81 Other reasons (e.g. chit fund) 15.04 Family problems with spouse, others 13.27 Chronic illness 9.73 Marriage of daughters 5.31 Political affiliation 4.42 Property disputes 2.65 Debt burden Price crash Borrowing too much (e.g. for house construction) Losses in non-farm activities 1.77 Failure of bore well 0.88 Source: Panagariya, Arvind (2008). India. Oxford University Press. p. 153. ISBN 978-0195315035

One farmer suicide after rural population Data quoted in Lok Sabha, number of suicide as a percentage of total rural population. Figure reveals that Punjab has the worst per capita figure. States One farmer suicide after rural population Punjab 38, 678 Telengana 63,114 Maharashtra 84.904 Karnataka 3,50,189 Andhra Pradesh 9,71,753

Vicious System of Agriculture Price vagaries Middleman High Interest Good Weather Borrowing for fertilizers, weedicide, pesticides, seeds Crop mono-culture Highly input sensitive Bad Weather Augment Suicide Risk Low Harvest Low produce price Tentative Reasons: Bad Monsoon  Low Harvest  High Interest  Low Price of product  Low land availability  High input cost Lack of Crop diversification Farmers suicide, Farming and Environment

Possible solution to curb farmer suicides Role of local government: Create a Early Warning Signal as prevailing for corporate borrowers. Various techniques can be formulated where block, district and state level committee can issue a list of potentially indebted farmers and share it with local administrative official at block or village level. These official can further provide counselling and also help in bankruptcy proceedings or restructuring of loans in case farmers are in debt traps. A shift from genetically modified and non-renewable seeds to organic, open pollinated seed varieties which farmers can save and share. This will reduce the cost of purchasing seed. Robust and reliable irrigation policy. Crop insurance. Easy assess to funds via bank accounts to avoid local moneylenders. Cold storage facilities. Cooperative movement need another push with IT infrastructure. Absence of proper standardization or grading of products.