Economics of Farmers’ Suicides (With Special Reference TO Banking and Financial Sector)

Economic growth and development is regarded as the solution of all global problems faced by the human race in their day to day relations. Further, if the growth is skewed or in other words unbalanced than may not sustain forever as some segments of society and economy are ignored as a consequence. More market friendly policies have excluded many sections of the populations and at the very same time pro-inclusive growth advocacy, e.g. the N.G. Os; also exclude some people. (Chakravarty, 1989)(Mahendra Dev, 2011) Before Independence Agriculture was main occupation in India. People believe in traditional agriculture and are using those natural ways of cultivation. Those days, cattle's were used for ploughing the fields. Farmers used manual ploughing method, and natural manure for better fertility of crop. Thus whatever they earn out of it is sufficient for them. But with the advancements in technology, numbers of new techniques were started to be implemented in agriculture to increase the productivity. For all these, money is required, which the people in the sector lack. Hence, they opt for loan, and inability to repay the same ultimately leads to suicides. As per the recent updates, farmer suicides account for 11.2% of all suicides in India, as per the NCRB sources. (National Crime Record Bureau, 2014–2015) In a humble attempt, it has been outlined as to how and why the incidents of farmers’ suicides are happening in India and suggests that there exist policy-paralysis which corresponds to financial-system failure in attaining the goals for which such institutions formed. Agrarian changes having considerably lowered the level of economic achievements of farmers’, as in this study it has been argued logically and factually; that the major cause of farmers’ suicides is inability of the proper management and post lending assistance enabling the farmers to repay the loans. The objective of study is to find out the root cause of farm suicides in India. For which study has been done on secondary data taken from some reliable Government data portals. Analysis is based on various variables, sourced as secondary data, and observed that that heavy indebt ness is the root main cause of farm suicides in India, therefore, a comprehensive action and policy reframing necessary at Government and other agencies level.