2012 SERP study of beneficieries of 421 GO

While there is pressure on the government to recognise the farmer suicides and support the affected families under 421 GO, the study done by Society for Elimination of Rural Poverty (SERP) in 2012 shows that the situation of the families with this meagre support it self has not made much difference in the lives of the people. This is one of the largest sample study ever done.

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The debt story less told

The Hindu, February 12, 2015, by K P Prabhakaran Nair

http://www.thehindubusinessline.com/opinion/the-debt-story-less-told/article6887610.ece

Small and marginal farmers in rainfed regions are trapped in a losing battle with agriculture — and with life

The lot of the poor Indian farmer keeps deteriorating with the passage of time. According to the National Sample Survey Office (NSSO) data released on December 19, 2014, during the last decade, the bloated debt of Indian agricultural households increased almost 400 per cent Even the number of heavily indebted households has steeply increased during this period.

The report is titled Situation Assessment Survey of Agricultural Households in India, and is based on a national survey covering 35,000 households during 2012-13. Though the definition of an agricultural household has changed during the last decade, the basic features remain the same. The survey states that, on an all-India basis, more than 60 per cent of the total rural households covered in 11 States are in deep debt, though wide variations exist, ranging from 92.9 per cent households indebted in Andhra to 17.5 per cent in Assam. Loan patterns show it is 60 per cent institutional loans and 40 per cent non institutional loans. Moneylenders make up most of the non-institutional lenders.

Green revolution myth

Average debt per household is ₹47,000, while average income is ₹36,973 per annum. In 2002-03, India had 148 million rural households which increased to 156 million by 2012-13, a 5.4 per cent increase in a decade.

The data point to another disturbing trend. While average income from 2002-03 to 2012-03 increased by 318 per cent, most worryingly, total debt per household increased by 273.5 per cent during the same period, proving that while income from sale of agricultural products increased due to a price advantage during the last one decade, it has not translated into a reduction in rural indebtedness. Has the so-called green revolution really helped the poor and marginal farmer of India?

Benefits by way of better seeds or fertiliser input have been cornered by rich and affluent farmers in Punjab, Haryana, western Uttar Pradesh, Andhra, Tamil Nadu and Karnataka. The poor and marginal farmers of Bihar, Odisha and eastern Uttar Pradesh are in a miserable state. There are reasons to believe that indebtedness of rural agricultural households cannot be just 60 per cent, as shown by the NSSO survey, but perhaps as much as 70-80 per cent.

The enthusiasts of highly extractive agriculture, euphemistically called the green revolution, based on “high input technology” — very liberal, often unbridled, quantities of chemical fertilisers, very expensive hybrid or Bt seeds, copious use of irrigation water — kept proclaiming the “success” of this revolution. But the poor and marginal farmers , primarily in the vast rainfed areas of the country, were simply left out.

Their farms remained parched, while their debts soared. The Vidarbha region of Maharashtra, where Bt cotton failed miserably in parched rainfed fields and farmers in thousands took their own lives, unable to repay the loan sharks, became a global shame. Only where rich farmers had access to assured irrigation water coupled with unbridled use of chemical fertilisers could Bt cotton perform well.

 

PDS leakages

Many farmers are unaware of the minimum support price. And, often, these farmers resort to distress sale of their produce to clear the loans from moneylenders, obtained at exorbitant interest rates. In collusion with unscrupulous local traders and commission agents, government agencies delay procurement of grains by, in some cases, as many as 50-60 days.

The poor end up spending more than 50 per cent of their meagre farm income buying food for mere subsistence, while the government procured grain in the FCI godowns finds its way into the hands of corrupt officials, middlemen and grain traders.

Though the contribution of India’s agriculture to the country’s GDP is 18 per cent and it provides employment to more than 60 per cent of the total workforce of the country, if one goes by the NSSO survey, the country is heading towards a crisis in agriculture. The Prime Minister would do well to rethink his ‘Make in India’ strategy. These poor and highly indebted farmers, most with no formal education, cannot be allowed to migrate to congested urban areas to eke out a miserable, daily wage-earner’s life.

In Telangana, caught between life and debt

Ravi’s wife Yadamma now works as a farm labourer to support her sons. (Source: Harsha Vadlamani)
Written by Sreenivas Janyala | Karimnagar |Posted: November 20, 2014 4:30 am

On the night of July 4, Korishala Ravi stepped out of his house that is right across a branch of the State Bank of Hyderabad in Kodakandla village of Medak district in Telangana. The 35-year-old farmer had applied for a loan to the branch three times but his plea was rejected each time, forcing him to turn to moneylenders. Few hours later, not too far away from the bank branch, he was found dead, his body hanging from a tree.

Ravi’s village is part of Telangana Chief Minister K Chandrasekhara Rao’s Gajwale constituency. Rao had identified it to be developed as a model village.

On September 23, Polu Rajaiah, a 48-year-old landless farmer of Thotapalli village in Karimnagar district, got himself a hair cut and asked his wife to make his favourite curry. After lunch, he went to their field about one km away, drank pesticide and died. Rajaiah had been borrowing money, first to take two acres on lease, then another four acres, and to purchase seeds and fertilisers, but his maize crop had failed, leaving
him with a debt of Rs 3 lakh.

Since Rao took over as the chief minister on June 2, there have  been 79 farmer deaths officially recognised as ‘suicides’ in the newly formed state. Beera Ramulu, a farmer and RTI activist associated with NGO Rythu Swarajya Vedika, puts the number at more than 300. Most of these farmers died in Warangal (83), Karimnagar (40) and Medak (70) districts. However, Agriculture Minister P Srinivas Reddy says not all farmer suicides are related to crops.

Like most of the others, Rajaiah and Ravi were both tenant farmers, and they did not fit anywhere in the system designed to help and protect farmers — be it loan eligibility cards, crop loans, easy bank credit, farm-loan waiver scheme or agriculture subsidies — as they had no land to show as collateral. That left them at the mercy of moneylenders charging interest rates as high as 24 per cent per annum. Now their families have to prove the deaths were solely linked to their crops to be entitled to ex-gratia — another uphill battle.

On November 13, the RBI issued a circular to all banks on financing ‘Bhoomi heen kisan (landless farmers)’, as per an announcement in the Budget. Under it, landless farmers can form ‘Joint Liability Groups’ and avail of loans through NABARD for farm and non-farm activities, standing as guarantors for each other. The measure, it is believed, would go a long way towards resolving denial of loans to landless farmers. Union Agriculture Minister Radha Mohan Singh has proposed financing at least 5 lakh joint farming groups this financial year.

Ravi’s brother Balanarasimha, a taxi driver, says Ravi’s loan applications were rejected because he didn’t own any land to show as collateral. “They asked for land ownership documents first to even consider the application,” he says. Ravi had taken five acres on lease to grow cotton, maize and paddy, of which two acres belonged to a relative who had already taken a loan on the land. The owner of the remaining three acres refused to give him a lease agreement, which would have made Ravi eligible for loan. State Bank of Hyderabad Kodakandla Branch Manager Sheikh Abdul Kareem says, “Farmers seeking loans have to give us a copy of the land title in his name, or, in case of tenants, a copy of the lease agreement signed by the owner. We cannot give loans if the documents are not clear or there is a dispute regarding ownership.” The Korakandla branch caters to nine nearby villages, with at least 7,000 farmers. Since January, it has given 500 new crop loans and rescheduled 700 old loans under the Telangana government’s crop loan waiver scheme, but the amount of loan given is very small. For cotton crop, it is Rs 20,000 while for paddy, it is Rs 18,000 per season. The Telangana Rashtra Samiti (TRS) government in the state had announced a Rs 17,000 crore farm loan waiver scheme, to fulfill its poll promise. Under the scheme, outstanding amounts as on March 31, 2014 on crop loans up to Rs one lakh are waived off. This rescheduling of loans makes farmers eligible for fresh loans. The government order issued on August 13, however, clearly stated that the scheme covers only institutional loans and not loans from non-institutional sources. Ravi also tried to get a loan from Telangana Scheduled Castes Cooperative Finance Corporation Ltd through the bank, but the policy is still under discussion. Managing Director of the corporation B Jayaraj says once the budget is passed in the Assembly, the government will decide the loan and subsidy ratio. Admitting a “few inherent deficiencies”, State Bank of Hyderabad General Manager J Sitapathy Sarma says, “Denial of loans to landless farmers is a major issue and needs a change of policy which will make them eligible even if they are unable to show collateral.” He, however, insists that farmers must make an effort to at least get a loan eligibility certificate from the village or mandal revenue officer. The State Bank of Hyderabad is the convener of the State-Level Bankers’ Committee (SLBC). Meanwhile, in order to meet their 18 per cent target fixed for farm loans, banks classify all kinds of loans under the agriculture sector. For example, the SLBC said in July that banks in Telangana had given Rs 49,564 crore loans to the agriculture sector in 2013-14. But when the state government sought details of the accounts of individual farmers who were given loans, SLBC revised the figure to Rs 12,000 crore on March 31, 2014. Banks were apparently also bunching agricultural loans with those taken by farmers for jewellery, marriages, and other non-farm expenses. There are many examples of farmers taking loans for digging or repairing bore wells and paying children’s fees. When crops fail, all these add to their loan burden. “Thousands of farmers are caught in a vicious cycle of debts due to low yields or total crop failure. There is constant pressure from moneylenders and when it does not rain and crops start failing, all they can think of is escaping it by taking their own lives,” says activist Beera Ramulu. TRS politburo member and Karimnagar MP B Vinod Kumar admits the plight of landless farmers who take land on lease. “We need far-reaching reforms in the lending process to include landless farmers in the credit system. In 2010-11, banks introduced business correspondents in villages to make the process of giving loans easier but the correspondents recommend only those who have something to mortgage,” Kumar says. With no options, Ravi had borrowed money from relatives and other villagers at 24 per cent per annum. Documents show he took two loans at 18 per cent interest each, to pay Rs 50,000 upfront to take five acres on lease, and two loans at 24 per cent interest each. “The yield of the maize crop was not good due to inadequate rainfall. The paddy also failed,” says Ravi’s brother. Ravi’s wife Yadamma now works as farm labour, earning Rs 100 a day to support her sons Shiva and Sai. Rajaiah never thought of approaching a bank although three — Andhra Bank, State Bank of Hyderabad and UCO Bank — have branches in Husnabad, 25 km from his Thotapalli village. “We don’t own even a small piece of land, bank officials do not even look at your application. He did not get the loan eligibility card so there was no point going to the bank,” his wife Komaramma says. In 2011, the AP Government introduced a system of giving loan eligibility cards to tenant farmers. Village Revenue Officers, tehsildars, Mandal Revenue Officers could issue the card to a tenant farmer after ascertaining that farming is his only profession, is a genuine farmer, and has taken land on lease. In the presence of the village sarpanch and witnesses, a gram sabha is held and the farmer is given the eligibility card. “But revenue officials are wary of giving the eligibility cards fearing that they will be held accountable if the farmer fails to repay although the government order states that it is not the responsibility of government officials. When officials verify and find that the farmer has some outstanding loan already, they don’t issue the card. This way the system has slowly stopped working and very few cards are given,’’ says RTI activist and member of Rythu Swaraj Vedika Kondal Reddy. In Mallampalli village of Mulug Mandal in Warangal, Merugu Achala, 21, works up to eight hours in a cotton field for Rs 100-130 per day. Her husband killed himself recently over pressure from moneylenders after their cotton crop failed. Achala borrowed Rs 15,000 recently to pay the school fees of her daughter and son, in Class I and kindergarten respectively. The loan outstanding in her husband’s name is already around Rs 1 lakh, but Achala is determined to keep her children in a private school. “My husband did not want them to work in the fields and wished they got proper jobs when they grew up. I too don’t want them to ever work in agriculture,” she says. – See more at: http://indianexpress.com/article/india/india-others/in-telangana-caught-between-life-and-debt/4/#sthash.CXKQ5uO9.dpuf

Does ‘No Pesticide’ Reduce Suicides?

  1. Lakshmi Vijayakumar
    SNEHA and Voluntary Health Services, Adyar, Chennai, India,dr_svk@vsnl.com
  1. R. Satheesh-Babu
    Mamata Medical College, Khammam, India

Abstract

Introduction: Ingestion of pesticides is the most common method of suicide, particularly in China, Sri Lanka and India. Reported pesticide suicides in India numbered 22,000 in the year 2006.z

Method: Four villages in the state of Andhra Pradesh in India that had stopped using chemical pesticides in favour of non-pesticide management () were visited to assess any change in suicide incidence before and after discontinuation of chemical pesticides. Four similar villages in the same region that continued to use chemical pesticides were used as controls for comparison.

Results: In the pesticide-free villages there were 14 suicides before introduction of NPM and only three suicides thereafter. The percentage of suicides not reported to authorities was 47%.

Conclusion: Restriction of pesticide availability and accessibility by NPM has the potential to reduce pesticide suicides, in addition to psychosocial and health interventions.