This document discusses the socioeconomic issues facing farmers in rural India. It notes that farmers face multiple risks like poor crop yields, low prices, and lack of access to credit. This has led to a crisis in the agricultural sector as seen by the increasing rate of farmer suicides. The document then analyzes data showing the low monthly per capita income and consumption among farmers. It discusses some risk mitigation strategies like crop insurance and weather insurance that can help provide farmers stability during times of poor harvests or low rainfall. The conclusion is that such insurance policies can benefit farmers by providing them income even in bad years to support their families and invest in their children's education.

1. Final project MOOC
By vighnesh

2. Abstract
Poor returns to cultivation and absence of non-farm
opportunities are indicative of the larger socio-economic
malaise in rural India. This is accentuated by the multiple
risks that the farmer faces – yield, price, input, technology
and credit among others. The increasing incidence of
farmers’ suicides is symptomatic of a larger crisis, which is
much more widespread. Risk mitigation strategies should
go beyond credit.

3. Introduction
In recent years, one observes an increasing incidence of
farmers’ suicides. Suicide being a multifaceted and
complex phenomenon, the risks are identified either in the
neurobiological or socio-economic domain.
The former are predisposing in nature and are internal to
the individual whereas the latter are the precipitating ones
and are external to the individual.
A relatively higher suicide among a particular sub-group is
indicative of a larger socio- economic malaise.

4. Poor return to cultivation
On a average return to cultivation in 2003 was Rs. 11,259.
however now the average return cultivation is less than Rs.
15,000, however the family size has also increased to 5.5
turns out Rs. 8 per person.
Let’s just say that the primary goods market is not doing well,
in India due lack of rain in India, there is a lot of lack of water
there is not much of a good harvest produced in India. The
family size of the farmers is also increasing at a rapid rate due
to lack of education and lack of family planning. So as a result
this the per capita income falls very low.
Some data in terms of graph is are given in the next slides

5. Monthly Per Capita Income and Consumption by Size-Class of Holdings, 2003
Size-class (hectares) Income (Rs) Consumption (Rs)
< 0.01 1380 2297
0.01 -0.40 1663 2390
0.41 –1.00 1809 2672
1.01 –2.00 2493 3148
2.01 –4.00 3589 3685
4.01 –10.00 5681 4626
>10.00 9667 6418
Source: National Sample Survey Organisation (2005).

6. Farmers suicide
Poor agricultural income and absence of non-farm
avenues of income is indicative of the larger malaise in
the rural economy of India. One manifestation of this has
been the increasing incidence of farmers’ suicides.
The suicide mortality rate (SMR, suicide death for 100,000
persons) for male farmers in India increased from 12.3 in
1996 to 19.2 in 2004 and then reduced to 18.2 in 2005
whereas SMR for male non-farmers increased from 11.9
in 1996 to a peak of 14.2 in 2000 and thereafter declined
to 13.4 in 2005. So during 2001-5 there were about
86,922 famers committing suicide out of which 86% were
males

10. Aspect of Risk
management
The Yield risk can be addressed by crop insurance is an
answer in India. In this insurance major food crop and
food grain are covered by this insurance. These insurance
are currently implemented by Agricultural Insurance
Company of India Limited (AICIL).
A pilot project of weather insurance has been introduced
by some private provider. In this insurance money will be
provided according to the Rain fall in the year.
If there is low rain fall insurance pays money to Farmers
and If there is abundance of rainfall then insurance is not
paid whether there is a good harvest or not.

11. Conclusion
These policies used can help benefit the Farmers from
various problems. Due to low harvest or bad rains they will
still have some amount of income from the Insurance.
Due to this farmers will be able to take care of the family
even during bad times.
This will also benefit the economy as farmers will educate
their children as they will have the money even during bad
times to support their children.