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LATEST NEWS UPDATES | Farmer suicides: 70% of India's farm families spend more than they earn -Devanik Saha

Farmer suicides: 70% of India's farm families spend more than they earn -Devanik Saha

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published Published on Jun 28, 2017   modified Modified on Jun 28, 2017
-IndiaSpend.org
 
The failing economics of such farms–agricultural households in the south are most indebted–are exacerbated by additional loans that families take to meet health issues, leaving them with diminished ability to invest in farming.

Nearly 70% of India’s 90 million agricultural households spend more than they earn on average each month, pushing them towards debt, which is now the primary reason in more than half of all suicides by farmers nationwide, according to an IndiaSpend analysis of various government data.

The failing economics of such farms–agricultural households in the south are most indebted–are exacerbated by additional loans that families take to meet health issues, leaving them with diminished ability to invest in farming. Outstanding loans for health reasons doubled over a decade to 2012, and loans for farm business fell by about half over the same period.

These data help understand the nature of India’s farm crisis in the light of the recent spate of farmer protests across states to demand loan waivers and better prices for their crops.

These 62.6 million households spending more than they earn had land holdings of one hectare or less, according to the 2013 situation assessment survey of farm households by the National Sample Survey Office (NSSO), the latest available data. In contrast, 0.35 million (0.39%) households owning more than 10 hectares of land had an average monthly income of Rs 41,338 and consumption expenditure of Rs 14,447, thereby maintaining a monthly surplus of Rs 26,941.

Nearly 85% of all operational farm holdings in the country are smaller than two hectares in size, NSSO data show.

No more than a third of Indian small and marginal farmers have access to institutional credit, as IndiaSpend reported on June 8, 2017, which suggests that loan waivers may not help them.

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Hindustan Times, 27 June, 2017, http://www.hindustantimes.com/india-news/farmer-suicides-70-of-india-s-farm-families-spend-more-than-they-earn/story-GKLoObJeDtbH2Z22csJsxK.html


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