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Rural stress affects farmers even in prosperous states

Greater adoption of cash crops combined with a collapse in the prices of agri-commodities has led farmers to the brink in major agricultural areas

Mayank Mishra New Delhi
Last Updated : May 02 2015 | 11:26 PM IST
According to the National Crime Record Bureau (NCRB) data, nearly 64 per cent of all farmer suicides in the country in 2013 took place in the four states of Maharashtra, Karnataka, Andhra Pradesh and Kerala, raising the question: why is rural stress resulting in farmer suicides in these relatively prosperous states?

NCRB started collecting profession-wise suicide data in 1995. Under the category of self-employed (farming/agriculture), the bureau reported 10,462 suicides in 2013. Maharashtra tops the list, accounting for about a third of these, followed by Andhra Pradesh and Karnataka.

Not all suicides take place because of economic stress. However, relatively higher incidence of suicide among farmers compared to non-farmers in most of the years for which data are available does indicate livelihood concerns associated with agricultural economy, say experts.

Greater adoption of cash crops in these relatively prosperous regions could be one of the reasons for acute rural stress in such states. "The pricing of agricultural commodities has been the biggest source of worry. My experience with the cotton growers is that they are forced to sell their produce below the cost of produce," says Sharad Nimbalkar, noted agriculture expert and former vice-chancellor of Akola-based Panjabrao Deshmukh Krishi Vidyapeeth in Maharashtra.

Take the case of cotton, which has been a source of anxiety for farmers in Maharashtra and Andhra Pradesh (now bifurcated into the two states of Telangana and Andhra Pradesh). Nimbalkar says that the cost of production for every acre of cotton is Rs 14,000-15,000. But at current market price, a farmer can expect at best a price of Rs 12,000-13,000 per acre, he adds.

What has worsened the situation is the volatility in prices of some agri-commodities. According to the Cotton Corporation of India data, the average annual price of J-34 variety spiked from Rs 3,115 a quintal to Rs 5,571 the following year and collapsed subsequently. In fact, in the past year itself, wholesale prices of cotton have fallen by 11 per cent in Maharashtra and nearly 13 per cent in Andhra Pradesh. Incidentally, the number of farmers killing themselves declined during 2006-2010 but increased subsequently in Maharashtra and Andhra Pradesh, thus indicating a direct correlation between the price of cotton and incidence of farmer suicide.

The price of other cash crops like soyabean, rubber and basmati rice too has seen big fluctuation in recent years. "A combination of factors has exacerbated rural distress in recent years," argues Ajay Jakhar, chairman, Bharat Krishak Samaj. "The collapse in the prices of agri-commodities is definitely one. Unseasonal rain has added to the hopelessness. What is needed is timely compensation to farmers."

The extent of rural distress in recent years can also be understood in terms of differences in the rates of suicide of farmers and non-farmers. A 2014 study by Srijit Mishra of the Indira Gandhi Institute of Development Research (IGIDR) shows that between 1998 and 2010, suicide death per 100,000 people among male farmers was always higher than among male non-farmers at the all-India level. The situation was particularly bad from 2001 to 2006, after which the two rates began to converge.

However, it has been a different scenario in the case of prosperous states such as Maharashtra, Andhra Pradesh and Kerala. The rate of suicide of male farmers in relation to that of male non-farmers has been at an elevated level throughout. About Kerala, the report says: "What is intriguing it that the difference between farmers and non-farmers suicide rates in Kerala is among the highest across states and the suicide rate for male farmers is 3.1 to 6.5 times greater than the suicide rate for male non-farmers." On Maharashtra, the IGIDR study observes: "With not much fluctuation in the suicide rate for non-farmers, it implies that the suicide rate for farmers has increased till 2006 and then again from 2010."

Experts point out that another factor behind rural distress has been the rise in input cost of farming. "My own experience is that input cost increases 15-25 per cent every year. It is mostly on the higher side in the case of cash crops," says Amol Totey, executive president of Orange Growers' Association. "In this scenario, if the price of produce drops for 2-3 years, it pushes farmers into a debt trap." He adds, "With banks showing unwillingness to restructure loans, farmers are pushed to the brink."

However, if one looks at the cost of labour, one of the key inputs for farming, data suggest a negative correlation between the rates of farmer suicide and growth in real rural wages. According to government estimates, "Nominal farm wages grew at only 1.8 per cent per annum from 2001-02 to 2006-07 and at a high 17.5 per cent per annum during 2007-08 to 2011-12." While the first period with minimum wage growth was characterised by acute rural distress manifested in higher rates of farmer suicide, the latter period was relatively better.

With a fall in average size of landholding and consequent fall in the number of cultivators, it is likely that many farmers double up as agriculture labour for additional income. And a dip in rural wage growth in the last few years may have added to the woes of such small and marginal farmers.

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First Published: May 02 2015 | 10:50 PM IST

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