4. INDEBTEDNESS & RELATED FACTORS Out of 17.64 Lakh farmers only (25.3%) farmers could avail institutional finance in 2005-06. Private money lenders charge high interest rates between 48-60% p.a. Higher rate of interest in the cooperative credit system e.g. up to 12.5% to 14% till last year. cooperative sector brought down their interest rates to 7%, even then the farmers are taking loans from the private individuals.
5. EXPENSIVE TECHNOLOGIES It is too risky to adopt expensive technologies.
6. UNCERTAINTY OF AGRICULTURALENTERPRISE IN INDIA
7. RISING COSTS OF CULTIVATION The price for inputs started to rise it resulted in the rise in the cost for cultivation.
8. NEUTRAL SEEDS The seeds which the private sector brought in are called as neutral seed or dummy seed because it makes the land neutral and moreover it doesn’t support the cycle of repeated sowing.
“THE UPA GOVERNMENT‟S WAIVER ISNO SOLUTION EVEN FOR THEIMMEDIATE CRISIS LEAVE THE LONG-TERM AGRARIAN PROBLEMS. NOTHINGIN THIS BUDGET WILL RAISE FARMINCOMES.” -P. SAINATH
“THE WAIVER HELPS ONLY IF THE LOANHAS BEEN TAKEN FROM A GOVERNMENT-BACKED INSTITUTION, BUT MOST FARMERSIN VIDARBHA BORROW FROMMONEYLENDERS AT THE START OF THESOWING SEASON TO BUY SEEDS.” - SATISHNANDGAONKAR
“LOAN WAIVER WILL STRENGTHENBANKING.” - P. CHIDAMBARAM
“WOUNDS THAT MORAL UNIVERSE. IT TELLSTHE FARMER NOT TO BOTHER TO REPAYHIS NEXT LOAN, BECAUSE, WHO KNOWS,ANOTHER PARTY WILL BE IN POWER ANDIT TOO WILL CANCEL HIS DEBTS. WHATMESSAGE DOES THIS SEND TO THE HONESTVILLAGE WOMAN WHO STRUGGLES EVERYWEEK TO REPAY HER LOAN?” - GURCHARANDAS
HAVEN‟T THEY SUGGESTED THAT THESEWERE WRONG POLICIES?
ECONOMISTS LIKE KEYNES, SMITH,RICARDO, ETC WROTE „ECONOMICS‟ BOOKSNOT FOR FAME OR MONEY BUT TO HELPTHEIR RESPECTIVE ECONOMIES.WHAT ARE ECONOMISTS IN INDIA DOINGTHESE DAYS?
ON AVERAGE, ONE INDIAN FARMERCOMMITTED SUICIDE EVERY 32 MINUTESBETWEEN 1997 AND 2005. SINCE 2002,THIS HAS BECOME ONE SUICIDE EVERY 30MINUTES.
ONE FARMER TOOK HIS OR HER LIFEEVERY 53 MINUTES BETWEEN 1997 AND2005 IN JUST THE STATES OFMAHARASHTRA, ANDHRA PRADESH,KARNATAKA, MADHYA PRADESH ANDINCLUDING CHHATTISGARH.
IN MAHARASHTRA ALONE, THERE WAS ONESUICIDE EVERY THREE HOURS. IT GOT EVENWORSE AFTER 2001. IT ROSE TO ONE FARMSUICIDE EVERY 48 MINUTES IN THESE BIG FOURSTATES. THE BIG FOUR HAVE TOGETHER SEEN 89,362FARMERS‟ SUICIDES BETWEEN 1997 AND 2005,OR 44,102 BETWEEN 2002 AND 2005.
VIDARBHA REMAINS A GRIM STATISTIC.ONE SUICIDE IN EVERY EIGHT HOURS.MORE THAN HALF OF THOSE WHOCOMMITTED SUICIDE WERE BETWEEN 20AND 45, THEIR MOST PRODUCTIVE YEARS.