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Indian Journal of Economics and Development

Volume 12 No. 1a: 287-290


April, 2016
DOI: 10.5958/2322-0430.2016.00078.0
www.soed.in

Farmer Suicide in India: Trend and Government Initiatives


Binita Kumari* and Tulika Kumari
Division of Dairy Economics, Statistics and Management, ICAR- National Dairy Research Institute, Karnal-132002
*
Corresponding author’s email: b.binitakumari@gmail.com

Received: February 13, 2016 Accepted: March 25, 2016

ABSTRACT
Farmer suicide is a black mark on the Indian agrarian economy. In the present study it has been revealed that the farmer
suicide is showing a decreasing trend over the years. This could be attributed to the factors such as government schemes,
proper irrigation facilities, high yielding varieties of crops etc. Also among the various states, Maharashtra has shown the
highest number of farmer suicide. This is mainly because of failure of cotton crop in the state. Many government initiatives
to remove the problem of farm suicides has also been discussed briefly in the paper.
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Keywords
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Farmer Suicide, National Crime Records Bureau


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JEL Codes
D78, D84, G18

INTRODUCTION classifying only those suicides among farmers that were


Agriculture forms the backbone of the Indian ostensibly for agriculture-related reasons as farm suicides.
economy. About 60 per cent of India’s population earn This is simply not true. As in past years, there is a range
their livelihood from farming. Indian agriculture is a of official reasons behind a suicide, as per the First
puppet in the hands of monsoon and thus, the farmer’s Information Report (the sum of which make up NCRB
income. Most of the farmers earn hand to mouth while numbers). In 2014, the NCRB included a break-up by
many others do not earn sufficient enough to fill the cause for some professions including farmers and armed
stomach of their family members. The farmers are left forces personnel. For farmers, over 40 per cent of
with no option, but to take loans from the money lenders suicides can be attributed to bankruptcy or farming related
at an exorbitant rate of interest as they are not eligible to problems. This clearly illustrates the problems with
get loans from banks. They use this loan either for making farming profitable and extending agricultural
consumption or for further production purpose. But credit. With government intervention and farmer friendly
owing to the vagaries of monsoon, they do not get enough scheme, the number of farmer suicides in the country is
returns from agriculture so as to repay the loans. And showing a decreasing trend. Many studies have been
thus, farmer is left with no option but to commit suicide. carried out earlier to show the rate of farmer suicide and
In 2014, the National Crime Records Bureau of India the myths related to it in various states viz., Ganapathi
reported 12360 farmer suicides across the country. Nearly and Rao (1966), Assadi (1998), Deshpande (2002) and
half of all suicides by cultivators in 2014 were in many others. In this paper the rate of farmer’s suicide in
Maharashtra alone, with Telangana following. The highest India is calculated. Also, the proportion of farmer suicide
number of farmer suicides was recorded in 2004 when among total suicides in India is found out.
18,241 farmers committed suicide. A number of MATERIALS AND METHODS
conflicting reasons can be cited for farmer suicides, such Data on farmer suicides and total suicides in India
as monsoon failure, high debt burdens, genetically from 2001 to 2014 is collected from National Crime
modified crops, government policies, public mental health, Records Bureau. A regression equation of farmer suicide
personal issues and family problems. A leading newspaper on time was fitted.
claimed that from the year 2014 onwards, the NCRB is ln (suicide) = a + b  time

287
Indian J Econ Dev 12 (1a): April 2016

Then, rate of farmer suicide in India was calculated As clearly depicted in table 2, in all the top five states
by using the formula: majority of farmer suicide is from land owners when
r = [antilog(b) - 1]  100 compared to that of agricultural labourers and tenant
where, farmers.
r = Rate of farmer suicide In the past the government appointed a number of
b = Rregression co-efficient inquiries to look into the causes of farmers suicide and
a = Constant term farm related distress in general. Some of these are
Also, the proportion of farmer’s suicide in total discussed below:
suicide in India among the years was calculated. 2006 Relief Package
RESULTSAND DISCUSSION In 2006, the Government of India identified 31
The data on farmer suicide and total suicides in India districts in the four states of Andhra Pradesh,
is presented in table 1 and the proportion of farmer suicide Maharashtra, Karnataka, and Kerala with high relative
in total suicides in the country is also shown. incidence of farmers suicides. A special rehabilitation
As shown in the Table 1, the proportion of farmer package was launched to mitigate the distress of these
suicides in total suicides in India was found to be farmers. The package provided debt relief to farmers,
decreasing over the years. The reason for this could be improved supply of institutional credit, improved irrigation
increased financial supported extended to the distressed facilities, employed experts and social service personnel
farmers by the government over the years. to provide farming support services, and introduced
When regression analysis was done the following subsidiary income opportunities through horticulture,
coefficients were obtained: livestock, dairying and fisheries. The Government of India
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ln (suicide) = 9.869 – 0.027 time also announced an ex-gratia cash assistance from Prime
Standard Errors (0.045) (0.005) Ministers National Relief Fund to the farmers. Additionally,
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Number of Observations = 14 among other things, the Government of India announced


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Rate of growth was worked out to be -2.709 per the following:


cent. Hence, the rate of farmer suicide was found to be · In the Vidarbha region of Maharashtra, that had
decreasing at a rate of 2.709 per cent. Although the trend received considerable mass media news coverage on
is decreasing but the rate is not much. So, there is a need farmer suicides, all farmer families in six affected
for the government to give special attention to farmers districts of Maharashtra were given a cash sum of
especially, small and marginal farmers. 05 million (US$74,000) each, to help pay off the debt
In the year 2014, for the first time NCRB classified principal.
total agriculture suicides into that done by farmers and · 7.12 billion (US$100 million) in interest owed, as of
agricultural labourers. Farmers were further classified 30 June 2006, was waived. The burden of payment
into that with own land and that working on leased land. was shared equally between the Central and the State
Table 2 below shows the division of suicides among government.
different sub categories in top five states of the country. · The Government created a special credit vehicle for
Table 1: Total farmer suicide and total suicide in India
Years Farmer Suicide Total Suicide Proportion of Farmer suicide in total
Suicide
2001 16415 108506 15.12
2002 17971 110417 16.27
2003 17164 110851 15.48
2004 18241 113697 16.04
2005 17131 113914 15.03
2006 17060 118112 14.44
2007 16632 122637 13.56
2008 16196 125017 12.95
2009 17368 127151 13.65
2010 15964 134599 11.86
2011 14027 135585 10.34
2012 13754 120488 11.41
2013 11772 134799 8.73
2014 12360 131666 9.38
Source: National Crime Records Bureau (NCRB) (2001-2014)

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Kumari and Kumari: Farmer suicide in India: Trend and government initiatives

Table 2: Top Five States in Suicides in Agriculture Sector


State Agricultural labourers Farmers owning land Farmers on contract Total Farmers Total agriculture
Maharashtra 1436 2417 151 2568 4004
Telangana 449 623 275 898 1347
Madhya Pradesh 372 780 46 826 1198
Karnataka 447 286 35 321 768
Chhattisgarh 312 398 45 443 755
Source: NCRB, 2014

Vidarbha farmer, to the tune of 12.75 billion (US$190 Insurance program whose premium will be paid 50 per
million). Special teams comprising NABARD and cent by farmer and 50 per cent by government, launch
banks were deputed to ensure fresh credit starts of alternate income opportunities such as poultry, dairy
flowing to all farmers of the region. and sericulture for farmers in high suicide prone districts.
· An allocation of 21.77 billion (US$320 million) was The government further announced that it will finance a
made to improve the irrigation infrastructure so that marriage fund under its Samudaik Lagna with 10 million
the farmers of Vidarbha region had assured irrigation (US$150,000) per year per district, for community
facilities in the future. marriage celebrations, where many couples get married
Agricultural Debt Waiver and Debt Relief Scheme, at the same time to help minimise the cost of marriage
2008 celebrations – a cause of suicides among farmers as
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The Government of India next implemented the identified by its own study.
Agricultural debt Waiver and Debt Relief Scheme in 2008 Kerala Farmers’ Debt Relief Commission
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to benefit over 36 million farmers at a cost of 653 billion (Amendment) Bill, 2012
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(US$9.6 billion). This spending was aimed at writing of Kerala, in 2012, amended the Kerala Farmers’ Debt
part of loan principal as well as the interest owed by the Relief Commission Act, 2006 to extend benefits to all
farmers. Direct agricultural loan by stressed farmers under distressed farmers with loans through 2011. It cited
so-called Kisan Credit Card were also to be covered under continuing farmer suicides as a motivation.
this Scheme. 2013 Diversify Income Sources Package
Regional Initiatives In 2013, the Government of India launched a Special
Various state governments in India have launched Livestock Sector and Fisheries Package for farmers
their own initiatives to help prevent farmer suicides. The suicide-prone regions of Andhra Pradesh, Maharashtra,
government of Maharashtra set up a dedicated group to Karnataka and Kerala. The package was aimed to diversify
deal with farm distress in 2006 known as the Vasantrao income sources of farmers. The total welfare package
Naik Sheti Swavlamban Mission, based in Amravati. A consisted of 912 million (US$13 million).
group to study the Farmers Suicides was also constituted CONCLUSIONS
by the Government of Karnataka under the Chairmanship As depicted through the negative growth rate, the
of Dr Veeresh, Former Vice-Chancellor of Agricultural farmer suicide in the country is decreasing over the years
University and Prof Deshpande as member. but not sufficient enough to completely finish the reasons
Maharashtra Bill to Regulate Farmer Loan Terms, for suicide among the farmers even in a decade to come.
2008 Although the government is taking many measures to
The State government of Maharashtra, one of the ensure that a farmer does not commit suicide but that is
most farmer suicide affected states, passed the Money not enough. As agriculture is our country’s primary sector,
Lending (Regulation) Act, 2008 to regulate all private so more emphasis should be given towards the welfare
money lending to farmers. The bill set maximum legally of its stakeholders. Henceforth, Government should start
allowed interest rates on any loans to farmers, setting it more programmes for farmers.
to be slightly above the money lending rate by Reserve REFERENCES
Bank of India, and it also covered pending loans. Assadi, M. 1998. Farmers’ suicides: Signs of distress in rural
Maharashtra Relief Package, 2010 economy. Economic and Political Weekly. 33 (14): 747-
The State Government of Maharashtra made it illegal, 748.
in 2010, for non-licensed moneylenders from seeking loan Behere, P.B. and Bhise, M.C. 2009. Farmers’ suicide: Across
culture. Indian Journal of Psychiatry. 51 (4): 242–243
repayment. The State Government also announced that
Deshpande, R.S. 2002. Suicide by farmers in Karnataka:
it will form Village Farmer Self Help Groups, that will Agrarian distress and possible alleviatory steps.
disburse government financed loans at a low rate Crop Economic and Political Weekly. 37 (25): 2601-2610.
289
Indian J Econ Dev 12 (1a): April 2016

Ganapathi, M.N. and Rao, A.V. 1966. A study of suicide in NCRB. 2014. National Crime Reports Bureau, ADSI Report
Madurai. Journal of Indian Medical Association. 46: Annual, 2014. Government of India: 242.
18-23 Revathi, E. 1998. Farmers’ suicides: Missing issues. Economic
Hardikar, J. 2011. Farmer suicides: Maharastra continues to and Political Weekly. 33 (16): 1207.
be worst-affected 10th year in a row. DNA India
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ACKNOWLEDGEMENT
The authors are grateful towards the National Crime Records Bureau for sharing their database on suicides with the
public. Without it this paper would not have been possible.
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