Risks, Farmers' Suicides and Agrarian Problems in India:

Is There A Way to avoid it?

Srijit Mishra

Indira Gandhi Institute of Development Exploration, Mumbai

Sept 2007


Risks, Farmers' Suicides and Agrarian Turmoil in India:

Is There A Way to avoid it? 1

Srijit Mishra

Indira Gandhi Start of Advancement Research (IGIDR)

General Arun Kumar Vaidya Marg

Goregaon (E), Mumbai- 400065, INDIA

Email: [email protected] ac. in


Poor returns to cultivation and absence of non-farm opportunities will be indicative of the larger socio-economic malaise in rural India. This is emphasized by the multiple risks the fact that farmer looks – yield, price, insight, technology and credit among others. The elevating incidence of farmers' suicides is symptomatic of a bigger crisis, which can be much more wide-spread. Risk minimization strategies should go beyond credit rating. Long term tactics requires more stable profits from farming, and more importantly, from non-farm sources. Private credit and input markets need to be regulated. A challenge intended for the technical and monetary gurus is always to provide innovative products that reduce costs although increasing comes back. The institutional vacuum of organising maqui berry farmers needs to be tackled through a federation of self-help groups (SHGs) or option structures.

Keywords and phrases: Credit burden, Crop loss/yield uncertainty, Market vulnerabilities (price shocks and increasing insight costs), Earnings to fostering, Suicide Fatality Rate (SMR). JEL Code(s): D81, O13

1 This really is being prepared like a keynote newspaper for the theme " Risk Management in Agriculture/Rural Sector” for demonstration at the 67th Annual Convention of the Of india Society of Agricultural Economics (ISAE) to be held within the auspices of Bankers Commence of Countryside Development, Lucknow during the first days of The fall of 2007. The writer thanks Professor S. S i9000. Johl plus the ISAE pertaining to giving him this chance. Usual disclaimers apply.


Risks, Farmers' Suicides and Agrarian Catastrophe in India:

Is There A Solution?

Srijit Mishra

1 . Advantages

A popular typical saying that " abundance of water ruins life; paucity of water destroys life” signifies agriculture's link with monsoon. The vagaries of nature have been completely associated with ups and downs in cultivation. In addition , disease and pests can also influence crops. When the produce great, a extra in the market may through affordable prices lead to poor returns coming from cultivation. Raising cost may also adversely affect returns. Unwarranted inputs could also leave the farmer in a quandary. The increasing reliance on inputs from the market in addition has brought about increased demand for credit, which adds another important dimension towards the difficulties. You will find multiple dangers in agriculture – cash flow, yield, price, input, technology and credit rating among others.

Lately, one observes an increasing incidence of farmers' suicides. Suicide being a multifaceted and intricate phenomenon, the potential risks are determined either inside the neurobiological or perhaps socio-economic website. The former are predisposing in nature and they are internal for the individual while the latter would be the precipitating ones and are external to the person. A relatively higher suicide among a particular sub-group is indicative of a much larger socioeconomic discomfort, uncomfortableness.

The features with the current agrarian crisis are briefly developed as follows. Initial, there has been a decline inside the trend growth rate of production along with productivity for nearly all seeds from the mid-nineties. Further, the value of output via agriculture has been declining via late nineties. Second, there is an increased dependence of a giant section of the citizenry on farming (in 2004-05 nearly 64 per cent of the rural people were from households whose members major activity position was both self-employed in agriculture or agricultural labour). This likewise indicates that rural non-farm employment opportunities are limited. Third, with declining size-class of holding and an increasing...


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