Dec 23 2014 : The Times of India (Delhi)

Farmer suicides on rise: IB report

Bharti Jain

New Delhi:





There has been an upward trend in cases of farmer suicides in Maharashtra, Telangana, Karnataka and Punjab recently , besides reporting of instances in Gujarat, Uttar Pradesh and Tamil Nadu, said an Intelligence Bureau note submitted to the Modi government late last week.The December 19 report, marked to national security adviser Ajit Kumar Doval, principal secretary to the PM, Nripendra Mishra, and agriculture ministry among others, has put the blame on the erratic monsoon (at the onset stage) this year, outstanding loans, rising debt, low crop yield, poor procurement rate of crops and successive crop failure. It also linked the agriculturists' woes to a depleted water table, unsuitable macroeconomic policies with respect to taxes, non-farm loans and faulty prices of import and export.
According to the IB, “While natural factors like uneven rains, hailstorm, drought and floods adversely affect crop yield, manmade factors like pricing policies and inadequate marketing facilities result in post-yield losses“.
The report `Spate of Cases of Suicide by Farmers' emphasized how government relief packages are of limited use as they do not address the plight of those who borrow from private money-lenders.“The money lenders continue to offer loans at interest rates of 24-50%, while income-generating potential of the land has remained low and subject to weather conditions,“ the IB pointed out.
It observed that though loan waivers and relief packages may mitigate farmers' distress in the short run, “the problem requires a comprehensive solution that addresses crop yield, availability of farm inputs and loan, assured irrigation, cold storage and marketing facilities and fair pricing policies“.

Jul 14 2014 : The Times of India (Delhi)

`Slash loan interest rate to cut farmer suicides'

Amaninder.Sharma@timesgroup.com





Patiala: To arrest the menace of farmer suicide, Punjab government's expert committee has suggested slashing of interest rates on loans to half, at 2% per annum as a solution. Over 6,000 farmers and farm labourers ended their lives in the state between 2001 and 2010.Admitting that Punjab agriculture is facing a “crisis, both in terms of economic and environmental viability“, it is for the first time that any government-constituted expert panel has sought loan facility to farmers at such a low rate of interest.
TOI is in possession of the committee's draft report.
However, rate of interest charged by private moneylenders is as high as 12-18% per annum. Due to easy availability and various economical compulsions, most farmers prefer to take loan from private moneylenders.
As per norms, the total rate of interest on farm loan is 7% per annum, of which farmers pay 4% and rest is paid by the Government of India in the form of subsidy . The condition is that maximum cap of loan amount should be Rs 3 lakh and should be paid within the specified time.
The committee has also demanded that the Centre increase its subsidy from 3% to 5%.
Not only agriculture loan, the panel has also recommended reduction of interest rate on investment loan to 6% for farmers.
It is now available at around 12%.
The committee was constituted by the Punjab government to propose a framework for its agriculture policy , which the state has to submit to Punjab and Haryana HC next month.
A survey conducted by three state universities revealed that 6,128 suicides were committed by farmers and farm labourers during 2000-2010 in the state, out of which 4,686 suicides were due to debt.