India's Farmer: Protests, Suicides and Abandonment

Agriculture crisis is too deep, with multiple factors, creating a culture of suicides, protests and abandonment of farming altogether.

Hyderabad: With the expected arrival of South West monsoon, the state governments are preparing for structural changes to tackle the complex issue of agrarian distress. However, the crisis is too deep to be resolved within the next few years.

The farmers in India are involved in a crisis trap with issues like availability of fertilizers, seeds and farm loans turning agriculture into an unprofitable sector.

The woes of the farmers are further compounded by diminishing monsoon due to El Nino effect in the upcoming season.

Besides, the country has already witnessed 12 deficit rainfall years in the last 18 years.

One of the major causes of this increasing distress is the unavailability of farm loans. The lenders are reluctant to give away loans as the chances of them turning into 'Bad loans' are shockingly high.

The Bank of Maharashtra has already called its branches to refrain from issuing farm loans in the six drought-hit districts of Maharashtra.

The Cooperative Banks in Telangana State are issuing notices to farmers to clear their old farm loan dues with interest.

Though the National Bank for Agriculture and Rural Development (NABARD) has been directing bankers to earmark lakhs of crores for farm loans, the farmers have not been getting enough credit to meet their requirements.

Almost half of the farmers in the country are wallowing in indebtedness.

According to RBI norms, farm loan should comprise at least 18 per cent of the total quantum of loans sanctioned by a bank.

In a survey conducted around three years ago, 52.5 per cent of the rural agricultural households and 42.8 percent of non-agricultural households are indebted.

Meanwhile, countries like Israel, Myanmar and Thailand are earning handsomely through export of farm produce.

The inefficient farm policies of successive governments have compounded farm distress caused by natural calamities and crooked market forces. The unabated farmer suicides are a direct consequence of this hapless situation.

Even the key recommendation of the Swaminathan Commission report- policy of government buying crops at a 50% premium to costs, still needs better implementation.

According to official data only 17 per cent of the rural households are eligible for credit from financial institutions.

The need of the hour is to establish an exclusive financial institution entirely dedicated to farmers.

The country can achieve food security by evolving policies that can improve the creditworthiness of our farmers.

Cultivators and agricultural labourers constitute 50% of India's workforce and hence shifting them out into secondary and tertiary sectors might ease the complex mess of farm distress gripping the country.