Agrarian crisis and its impact on farmers

Introduction

India is one of the most Asian aggregated economies of the world supporting massive numbers of
people. Agriculture is an important sector of Indian economy accounting for 14% of national Gross
Domestic Product GDP and about 11% of its import and about half of the population still relies on
agriculture as its principal sources of income. Unfortunately, the Indian agriculture is in a state of crisis
and over the years has become unviable activity.

Even during the post-independence phase despite all its promises of development and modernization,
the agrarian sector was not redeemed of the crises. Although Indian state- through legislating on land
ceilings; abolishing Zamindari system; curbing money lending and intermediaries; introducing Planning
Commission to supervise the development of agriculture- attempted to improve the condition of
farmers, the deprivations and inequalities continued to exist.

The national criminal record Bureau of India reported in its 2012 annual report that total 13754 farmers
committed suicide. in 2011 total of 14027 farmers committed suicide. in 2010 total of 15963 farmers of
India committed suicide.

The State interacted with the agrarian sector from independence till 1990s appeared to have imbibed
certain socialist tendencies towards leading conversations on social intact. Indian state sought to wear a
mask of socialist character and promote the interest of private capital. Scholars like Partha Chatterjee
regards it as the project of passive revolution imbibed by Indian state in order to ensure the primitive
accumulation of capital. According to Chatterjee, planned development was a subtle strategy adopted
by Indian state to foster and nurture capitalist development.

As Large tracts of lands were acquired for the purpose of building dams along with large factories and
industries. heavy amounts of money were outlaid for building heavy and capital intensive public
industries–which latter on were transferred to private capital. f the economy thus neglecting the
infrastructural development of agrarian sector. The major objective remained to propel the capitalist
growth.

Agrarian crisis
India, by mid-1960s was under deep crisis for food grains. PL 480 programme, supported by the USA,
somehow sustained India for few years but the situation that India was trapped into was of acute food
shortage which required in- depth crises resolution.

during Indira Gandhi’s regime, that green revolution was launched, and an attempt was made to make
India food sufficient. However, the criticism against green revolution is that the major benefits of green
revolution went to rich farmers rather than the poor

The condition of farmers thus remained intact in poverty, debt, exploitation by higher castes and
classes, and middle peasants, even during colonial and post- colonial phase.

Examining farmer suicide in India a study of literature by Mukherjee, Sanchita:

Farmer suicide is not a phenomenon by itself rather it is extreme manifestation of underline agrarian
crisis prevailing within the country for a long speed of time. According to official records around 160000
farmers has committed suicide since 1997 the most affected seats are Maharashtra Andhra Pradesh
Karnataka Kerala and Chhattisgarh.

the reason cited by literature highlighted ruler indebtness as a major factor policy isolated with the
process of liberalization impose stress on peasantry of the country by withdrawing formal support
towards sector which and turn made farmer dependent on non-institutional sources such as private
money lenders and private agents.

Seed sector liberalization has not only brought private players in agriculture but also encourage
monoculture of hybrid crash crop requiring costly inputs which frequently get transferred into debts.
This situation coupled with crop failure due to the Peas attack climate change and lack of irrigation let to
miss match Expectations of farmer and debts.

Agriculture growth decoration in India a review of explanation: kakar lapudi , kiran Kuma r
Since the Inception of economic reforms Indian economy has achieved A Remarkable rate of growth
however growth bypass agriculture sector which show sharp decline in growth

3.62% during 1985-1995 to 1.975% in 1995 - 2005.

Various development happen after 1990 that led to intensification of aggregate in Crisis
which are follows;
1 high input cost:
the biggest input for farmer before liberalization was that the farmer across the country has access to
seed from state government institution the Institution produce its own seeds were responsible for their
qualities and price and it was state duty to install seeds and supplied to all regions in the state no matter
how remote areas were.

with liberalization India's seed market open up to global agribusinesses like Monsanto, Cargill and
Syngenta. Also following the deregulation guidelines of the IFM many seed government institutions
were closed down in 2003.

These hit farmers double hard: in and unregulated market seeds price short up and fake seeds made
appearance. farmers expecting high yielding because of which they invested heavily in seeds but there
35% of their investment in seeds were a waste.
The claims of Monsanto that their seeds produce higher yield and are pest resistant was highly disputed.
Farmers tempted by their lower price invested heavily in the seeds but due to low output it pushed
them into debt.

2 cut back in agriculture subsidies and low output cost:

By green revolution Farmers were encouraged to shift from growing a mixture of traditional crops to
export oriented cash crops like Chili cotton in tobacco which needs more inputs pesticides fertilizers and
water than traditional crops.

But due to Liberalization policies pesticides and fertilizers subsidies was reduced due to which prices
increased by 300%. pre liberalization there were subsidies electricity which allowed farmers to keep
coast production low. But after the removal of it production cost increases thematically as for
 The cultivation of cash crops needs more water and higher consumption of electricity.

3. special economic zones : as part of the economic reforms the system of taking over Land by the
government for commercial and industrial purpose was introduce in the country as per the special
economic zones act of 2005. the government has so far notified about 400 such zones in the country.
Very often it is fertile land which has been acquired. the government has acquired 5 million hectare of
land for purpose other than agriculture between 1991 and 2003.

4. Paucity of credit facilities : after 1990 words the landing pattern of commercial bank including
Nationalized banks to agriculture drastically change with the result that loan was not easily available and
the interest was not affordable this has forced the farmers to relay on money lenders who charge
exorbitant rate of interest sometimes even up to 24% per months and has thus push up to expenditure
on agriculture when farmers will not able to payback load with high interest they fell into the depth
trap. Studies show that most of the farmer suicide word due to the depth trapped. it is a part of the
policy of privatization that banks even Nationalized banks look for profit over their social responsibilities
to the people credit extended to farmers was reduced dramatically falling to 10.3% in 2001 against a
recommended target of 18%.

5.Decline of government investment In rural development : Studies show that after economic reforms
the government expenditure and investment in the agricultural sector has reduced drastically this is
based on the policies of minimum investment by the government enunciated by the policy of flood
control, village industry, energy and transport decline from average 14.5% in 1986 Irrigated land was
2.62% later it got reduction to 0.5% in the post reform period.

6. reduction on import barriers; with a view to open Indian market the liberalisation reforms also
withdraw Texas and duties on import, which protected an encourage domestic industry by 2001 India
completely remove receptions on import of almost 1500 items including food as a result cheap imports
flooded the market pushing process of crops like cotton papers down this excess supply of cotton in the
market lead cotton prices to crash more than 60% since 1995 result most of the farmers in Maharashtra
who was concentrated in the Cotton committed suicide India export of paper filled by 31% in 2003 from
the previous year close to 50% of suicides among Kerala's farmer have been from papers providing
districts

Conclusion
The contemporary agrarian crisis in India is a direct outcome of economic reforms in India since the
1991. it is high time the government and the people realize that India can become a Real superpower
only when the vast majority of people especially farmers in rural areas become prosperous and also
really empower. the world of MS swaminathan “in a country where 60% of people depend on
agricultural livelihood it is better to become an agricultural force base on food security rather than
nuclear forces