In 80% farmer-suicides due to debt, loans from banks, not moneylenders

It’s for the first time that the NCRB has categorised farmers’ suicides due to debt or bankruptcy based on the source of loans.

Written by Deeptiman Tiwary | New Delhi | Published:January 7, 2017 5:53 am
Farmer's suicide, farmers suicide India, farmers suicide reasons, farmers bank loans, farmers moneylenders loan, NCRB, NCRB data, NCRB on farmers suicide, NCRB data on farmers suicide, bankrupcy, india news, indian express news According to the NCRB data, “bankruptcy and indebtedness” witnessed the sharpest spike in 2015, registering an almost three-fold increase (3,097) as compared to 2014 (1,163). (Representational)

LOCAL MONEYLENDERS are usually portrayed as the villains in India’s farmer-suicides narrative, but government data shows that 80 per cent of farmers killed themselves in 2015 because of bankruptcy or debts after taking loans from banks and registered microfinance institutions.

According to National Crime Records Bureau’s latest farmer-suicides data, of the over 3,000 farmers who committed suicides across the country in 2015 due to debt and bankruptcy, 2,474 had taken loans from banks or microfinance institutions.

It’s for the first time that the NCRB has categorised farmers’ suicides due to debt or bankruptcy based on the source of loans.

The figures (see page 2) show that only 10 per cent farmers had committed suicide due to debts caused by loans taken from both banks and moneylenders — the share of loans from moneylenders under this section was 9.8 per cent.

As first reported by The Indian Express on August 19, 2016, farmer suicides saw a spike of 41.7 per cent in 2015 from 2014. The year 2015 saw 8,007 suicides by farmers compared to 5,650 in 2014, according to NCRB data.

Among the states, the data showed, Maharashtra (3,030), Telangana (1,358), Karnataka (1,197), Chhattisgarh (854) and Madhya Pradesh (516) led the table. Karnataka saw a more than three-fold rise in farmer suicides in 2015, as compared to 2014 when around 300 farmers ended their lives.

“The latest data is interesting because all of us thought that moneylenders were the culprits of the piece. Even today, more than half the people take loans from moneylenders,” said Abhijit Sen, a former member of the erstwhile Planning Commission.

However, Sen said, moneylenders were more flexible compared to banks and microfinance institutions. “The organised sector is less flexible because rules don’t permit them flexibility. The microfinance sector is worse. They put pressure by telling others in self-help groups that their share would be cut if one person does not pay loans in time. This creates social pressure, as well. Many also send goons to the neighbourhood to scare borrowers,” he said.

According to the NCRB data, “bankruptcy and indebtedness” witnessed the sharpest spike in 2015, registering an almost three-fold increase (3,097) as compared to 2014 (1,163).

Similarly, farm-related issues, too, have seen a sharp spike of over 61 per cent. While 969 suicides were recorded due to crop-failure and other farm-related issues in 2014, 2015 saw 1,562 suicides in this category.

Among states, Maharashtra (1,293) reported the maximum number of suicides due to “indebtedness”, followed by Karnataka (946) and Telangana (632). With 131 deaths, Telangana reported the highest number of suicides by farmers who took loans from moneylenders, with 131 deaths, followed by Karnataka (113).

Similarly, farm-related issues such as crop failure forced 769 farmers to end their lives in Maharashtra, followed by 363 in Telangana, 153 in Andhra Pradesh and 122 in Karnataka. Family problems (933) and illness (842) were other top reasons for suicides among farmers in 2015, according to NCRB data.

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  1. B
    Bipin Bhardwaj
    Jan 7, 2017 at 1:58 am
    Total loan of farmers is less than 0.5% of the Loans which was written off for the Super rich, then with the policy of ruining agriculture and ruining them financially , free import of Pulses was enforce, now the import of duty free Wheat . These systematic policy of ruining farmers, agriculture is the main thrust of the Govt, to enrich MNCs at the cost of Indian Econ my. Is there anyone more anti national then the Govt itself.
    Reply
    1. H
      Hindustan Hamara
      Jan 7, 2017 at 1:11 am
      Demonetization has given unlimited power to Banks. They will now bring various schemes of lending money on high interest rates. They will control now every sphere of our lives. Banks Rule!
      Reply
      1. A
        Aditya
        Jan 7, 2017 at 4:45 am
        Need to look at the problem from root cause then trying to address the symtonslt;br/gt;lt;br/gt;1. Water irrigation and water management. India should start a large country level project to connect all rivers together and use every drop of it and prevent water going back to sea.lt;br/gt;lt;br/gt;2. Reduce pressure on land by developing alternate form of employments lt;br/gt;lt;br/gt;3. Crop insurance and minimum price for cropslt;br/gt;lt;br/gt;4. Education of farmers where risks of taking loans lt;br/gt;lt;br/gt;6. Local issues why Maharashtra has highest sucides ? Preventing micro financing to farmers. Only large banks with crop insurance can provide the loans. Also make sure banks do not take bribe to give loans
        Reply
        1. S
          S Srinivasan
          Jan 7, 2017 at 5:56 am
          It is only politics and mismanagement by the State authorities a federal setup likelt;br/gt;ours,the Centre can do only to certain level. Greed Revolution was started by a lt;br/gt;statesmen like Shri C Subramaniam but the next generation politicians have notlt;br/gt;taken duecare.Besides the national river linking projects is a non starter.Unlesslt;br/gt;and until the agriculture and policing are taken out from the State domain,thingslt;br/gt;will not improve a bit.Blaming the banks or for that matter " Karma" etc.is a myth.
          Reply
          1. D
            Dr B
            Jan 7, 2017 at 4:42 am
            All government( Congress, BJP and others) policies are against the farmers because they are not united. Government interfere when prices of farm products reaches at a reasonable rate. Government increases the export duty and hence prices in the local market falls. However when prices falls down, government does not takes care of the farmers to get minimum support price. Honorable prime minister announced to waive two month interest on the crop loan of the farmers but they don't know maximum farmers are in bank defaulters list and they are not getting any type of loan from the bank.
            Reply
            1. K
              Kaliyug
              Jan 8, 2017 at 1:48 am
              Every farm loan should have an built in crop insurance in the agreement, so that crop failures cannot cause an farmer to kill himself. Unfortunately Indian farmers use the loans to marry off their children, then have no money to use for the actual crops. The monitoring of the loans from the banks has to be strict, no non-farming activities should be allowed with the loans, this will prevent the suicides and also prove that farm failure due to loans is not the real reason behind the suicides.
              Reply
              1. D
                Dipti
                Jan 7, 2017 at 5:55 am
                Corrupt, self-serving bank babus allow Vijay Mallaya and Adani to loot but terrorize poor farmers. Shame.
                Reply
                1. S
                  Sreenivasan
                  Jan 7, 2017 at 6:01 am
                  It shows lack of will power of our political masters running the governments in State and Central Level. If there was proper guidelines issued to banks they wouldn't have ignored them. Non compliance should be made punishable, matching to the cruelty to farmers. The Bank managers will serve the people if their political masters are strong enough in the matter in their intentions.
                  Reply
                  1. F
                    freethinker
                    Jan 7, 2017 at 9:42 am
                    India became independent in 1947. That was sixty years ago which is more than two generations. In this period politicians of all hues and backgrounds aided by substandard bureaucrats have put India in a bigger mess than ever before. They have singularly failed in just about every kind of planning since they plan without foresight and the exploding potion, drastic climate changes and horrible governance, endemic corruption and a virtual lack of civic sense nullifies everything what Indians call progress.
                    Reply
                    1. K
                      KD
                      Jan 12, 2017 at 9:54 am
                      We should look at root cause. Value of farm produce is determined internationally. Most of the foreign farmers have access to cheap diesel and electricity. In India government is heavily taxing diesel and even electricity is very expensive. On the top of that potion growth and per capital calorie intake is stagnating. Therefore, this will put downward pressure on prices of farm produce. One of the probable scenario is that the m movement of potion from cities to urban areas in search of job.
                      Reply
                      1. K
                        kk
                        Jan 8, 2017 at 5:57 am
                        Capitalism is becoming more aggressive for its greed of profit. In addition to greed, it is capital's necessity to grow, as it can not remain stagnant and will demise in comparison to those capital, which are rising!lt;br/gt;Socialisation of land is the only solution for the miseries of farmers. However, unless, the state power comes in the hand of the working cl, it will not happen!lt;br/gt;Unite and fight for the power, for the means of production!
                        Reply
                        1. M
                          Manzoor
                          Jan 7, 2017 at 7:02 am
                          NC*RB provided the wrong data because they are hand and glove with moneylenders.
                          Reply
                          1. M
                            mkhan
                            Jan 7, 2017 at 2:20 am
                            Sorry state.lt;br/gt;Big talks. Non in reality.
                            Reply
                            1. M
                              M.P.Rao
                              Jan 7, 2017 at 2:17 am
                              While in case of crooks from the business field who defaulted,the loans were waived off,the poor farmers had to take their lives to escape harment from the goons sent by banks.This clearly shows on which side the Govt of the day is!
                              Reply
                              1. A
                                Asi
                                Jan 7, 2017 at 3:24 am
                                Those are not lucky like Malya Category. So suffer with सफ़र crooked mentality Politics
                                Reply
                                1. C
                                  Chandru
                                  Jan 7, 2017 at 2:10 am
                                  lt;br/gt;Pl visit this sitelt;br/gt;Only 5% suicide is due to indebtness!
                                  Reply
                                  1. P
                                    Prafulla
                                    Jan 7, 2017 at 4:25 am
                                    If any one can give economics of 1hector Farm how it can take care of farmers family with present prices? It is brainless potion growth is main reason.
                                    Reply
                                    1. P
                                      Prateik
                                      Jan 7, 2017 at 4:23 am
                                      Bose dk bhakt stop sucking and licking.high time you stop eating modi poo....
                                      Reply
                                      1. R
                                        Ram
                                        Jan 7, 2017 at 3:25 am
                                        70 year corrupt congress rule there are no improvement in lives of poor, farmers and no toilets etc. Finally NaMo is addressing this issue never tackled by congies, who only thought of loan waivers before elections. Solution is to bring comprehensive crop insurance schemes at very affordable rates, so that due to unforeseeable situations a farmer fails to cultivate, lose money due to excessive supply etc. he should be protected by such insurance scheme. Waiving loans is not a solution, as money in banks belongs to the depositors , again other citizens and such acts will destroy the economy. Dump every single policy formed by congress-comunist cabal for last 70 years and then only India can prosper and its citizens safe and secure.
                                        Reply
                                        1. R
                                          Ram
                                          Jan 7, 2017 at 6:55 am
                                          Is there any data regarding regarding death of Indian citizens in different areas like trade, students, teachers, farmers, auto drivers, riksha drivers etc.? Is there any specific discripency between farmers and others? What is the root cause? Just waiving loans will lead to mive fraud as every one will borrow expecting loan waiver soem day, which becomes unsustainable. Regarding Malya, he has run away from India, his properties are seized and is subject to arrest if he returns. That comparison with farmers show the stupidity of one doing such comparison. Every one in busines need to borrow large sums to do busines unless you are a sleeze bag using black money obtained by illegal means. Peopel complaining about Tata, Birla,Adani or Ambani should talk to millions of families surviving due to jobs provided by these businesses and Indian economy depends upon them. Otherwise all of us have to buy stuff from fotreign nations paying hefty price. This crazy hatred to big business looks liek a conspiracy by foreign agencies to weaken Indian manufacturing potential so that Imndia will never be a serious compeor internationally. China will be happiest if Adani, Ambani,Tata, Birla are destro by launatics in India with stupid agendas..
                                          Reply
                                          1. S
                                            Shamsul
                                            Jan 7, 2017 at 1:07 pm
                                            These suicides of Indian farmers should not be called killings but 'sacrifices' by poor Indians for making crony capitalist of India to flourish. BHARAT MATA KI JAI!
                                            Reply
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