By Lua Cheia
Farmer Suicides: Why?
India is home to 1.25 billion people 722% of which live in villages. As much as 60% of the work force works in agriculture in some capacity. Over the last two decades however, more and more people have been seeking non-agricultural work in cities, and urban townships. Mass migration from rural to urban areas has increased rapidly since 1991. An estimated 70-73 million people have migrated away from rural India because of a myriad of problems, such as lack of education, jobs, farming support, and opportunity and a lack of infrastructure for things like clean water and health care.
In 1991 an exchange rate crisis caused by fiscal and balance of payment deficits, pushed India near bankruptcy. As part of a bailout deal with India, the International Monetary Fund directed India to sell 67 tons of gold to the IMF, which was transferred to London as collateral. Also, India had to devalue the rupee and restructure economically to make the country more open to foreign trade. Since independence from the British in 1947, India had operated a state-controlled economy called the License Raj system. As part of the deal with the IMF, India got rid of the License Raj system and liberalized the economy.
A key player in the economic restructuring was Indian Prime Minister Manmohan. Singh. He moved India from a socialist economy into a capitalist one. He opened international trade and investment, initiated privatization of certain public sector companies, enacted inflation control measures, broke up state monopolies, and removed obstacles standing in the way of Foreign Direct Investment (FDI). At this time, India entered into an era of globalization.
Trade liberalization, and globalization has forced India to compete with more developed countries, when only a percentage of her people were of the mind or education level to do so. There is no doubt however that economic reforms have brought with it many opportunities and chances for education, greater access to health care and public utilities, and an international competitor and contributor to many technological fields, among other things. Act Naturally acknowledges that there have been positive changes. Our work however, focuses on those who have been left behind as India heralds a new age of prosperity.
Not everyone in the world, and certainly not in India’s rural expanse, participated in the machine of money exchange and consumerism to the scale that would make India attractive to foreign investment. At the time of these vast economic changes some villages still bartered wheat for haircuts and shoe repair, saved seeds, and used cow manure to grow their crops. Over the next two decades, generations of people; their values, culture, customs, means of producing food, relationship to land, and way of relating to wants and needs would have a new system, one that required money at its core to be successful, overlaid on top of their day to day challenges.
“With an influx of new money, products, and advertising these “poor people,” became overnight poster children for modernization by the developers. They all were potential markets. Tantalizing ads selling everything from new cellphones, to Coke, to diapers, to Himalayan shampoo, sparked conversation, then desire for a disposable world of stuff that has/had no real relevance to their practical day to day reality but never the less, with enough exposure, had tantalizing appeal . It was as if these new products could do something that nothing else had done – improve their social standing. The older generation was skeptical, but the younger generation craved it immediately.
The self definition through things fetish was engineered long ago by advertising agencies, and has had immense success in America. India patterns its success off of western business models. It’s a carrot on a stick that the farmer is chasing right off of his field.” — Kamla Vishvas
The promise of money in more urban areas to carve out a better life, has become the mantra that moves the young and old away from their family plots and often into cramped urban conditions. But that is not the only reason. The introduction of chemical agriculture since India’s Green Revolution began in 1966, has created more input costs to the farmer and these prices too have risen. The lack of government support for farming, because of an uneven focus on the IT, Biotech and Pharmaceutical industry, has left many farmers to the agendas of agribusiness giants like Monsanto, Carghil and ADM all American made.
As reported in PRAXIS: The Fletcher Journal of Human Security, in an article entitled, “The Paradox of Indias Bread Basket: Farmer Suicides in Punjab” written by Mallika Kaur;
“During the Green Revolution, production was improved with the use of modified seeds that increased yield only when combined with expensive chemical fertilizers and irrigation. Unable to afford sufficient amounts of these expensive inputs, small farmers found their holdings becoming progressively less profitable. Meanwhile, grain prices remained comparatively low even as input costs increased. Now, three decades later, the small and marginal farmers of Punjab, in trying to pursue environmentally and economically unsustainable agrarian practices, are accumulating high debt while lacking alternative sources of income. As a result, farmers, their unions, concerned NGOs, and several academics conclude that agriculture has become a losing proposition in Indian Punjab, the farming heartland of South Asia for generations.”
Farmers go into more and more debt year after year since signing initial contracts for “crop packages” – genetically modified seeds like BT-Cotton, that require companion herbicide for best results. These expensive seeds require the farmer to buy them year after year as it is a breach of contract with Monsanto to save seed. Every year he must take out a loan from someone or somewhere. Most rural farmers do not have official documentation of their land. This means credit and collateral is questionable, so they choose to deal with private money lenders even though private money lending is officially illegal. When a farmer can no longer pay their debt, two common scenarios play out. 1. They commit suicide or; 2. Their family land is seized by debt collectors.
These pressures, coupled with land grabs by foreign interests made possible by the SEZ or Special Economic Zones Act passed in 2005, and the Land Acquisition Act, has meant that more and more agricultural lands are abandoned, sold to foreign interests for nonagricultural purposes, seized by private money lenders cashing in on their debts, and/or turned fallow do to exhaustion of the ecosystem with chemicals.
It is not coincidence that the issue of farmer suicides was brought to the attention of the government in the early 90s just as India was liberalizing trade, by a journalist who focused on rural reporting named P. Sainath. Palagummi Sainath was the rural Affairs editor of the Hindu at that time. Although the numbers have a margin of error do to difficulties with official reporting, it is estimated by the NCRB that over 200, 000 farmers have committed suicide in the last 15 years. The NCRB is the National Crime Records Bureau, part of the Ministry of Home Affairs, is responsible for collecting and analyzing crime data in India. Some reporters say the number is as high as one suicide every half hour!
Summary of Causes
There are many causes for the stress in the farming community that leads some farmers take their own lives. They are dominantly related to public policy and economic strategy. Act Naturally has identified 22!:
- Lack of support from a government that is focused more on India’s technological future
- Legal tender system forced through majority rule on communities that bartered
- No advice from the government on how to conduct agricultural operations or adjust to changes in climate
- Income from farming is not enough to meet the minimum needs of the family
- Widening gap “price scissors” between industrial and agricultural prices
- World Trade Organization and developed nations’ subsidies that make India’s products uncompetitive in world markets thus lowering demand and price. This is particularly true in the case of cotton farmers in Vidarbha whose cotton competes against subsidized U.S. cotton
- Corruption at every level of government siphons off certain relief monies before they reach the intended
- Absence of adequate social support infrastructure at the level of village. No counselors. Issue is taboo.
- Rising prices of dowry causing huge hardships on family. The price of everything in the open economy is more, and the husbands families are demanding more as they seen grander lives advertised
- Relief packages organized by the central government did not take in account farmer’s demands, or those of civil society organizations, local government bodies or panchayats as reported by an audit of the state done by Green Earth Social Development Consulting.
- The same open market policy followed by India which has been a boon to foreign investors coming into the IT industry and benefiting Indian IT Engineers is causing an ever widening price gap between the food the farmers must eat to survive and the price the farmers get for their food in the market.
- Rising cost of cultivation
- Lowering water tables and lack of irrigation facilities. Expensive bore wells are now needed in some states. Poorer farmers can’t afford, and their lands are bought out by larger more successful farms.
- Reduction in agricultural subsidies
- Environmental pollution
- A push for cash cropping and mono cropping means a total loss of income when crop fails
- Pressure to use genetically modified seeds that are not acclimated to the fluxes in India’s climate. Pests are adapting.
- Subdivision of land through successive generations of sons in certain areas make the size of land too small to grow enough food to sell
- Compensation for acquired lands are often mismanaged by farmers who have not had experience or education on money management. Money is spent quickly. After it’s gone there is no land to produce a livelihood
- Compensation for lands acquired under the Land Acquisition Act and SEZ are often under the fair market price
- Threat of violence to farmer and family from illegal debt collectors
In the next blog article, I’ll introduce the solutions. There are many ways in which NGOs, non-profits, farming educators, local governments, cooperatives, unions, members of independent media, activists, volunteers and philanthropists can come together, bypassing culturally tolerated systems of corruption, to direct efforts that fortify the stability of India’s farmers. These are outlined in the next issue.