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Debt woes drive thousands of Indian farmers to suicide

  1. JanforGore
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On the last night of his life, the farmer walked into his dusty fields, choked down pesticide and waited to die.

He owed more than $1,000 to banks and moneylenders and he had told his wife that if the cotton harvest was bad this year, he would kill himself.

Pandurang Chindu Surpam left the near-barren fields he worked with his sons to share a last meal with his family. Hours later, he died. He was 45.

Crushed by debts most Westerners would deem inconsequential, farmers like Surpam killed themselves at a rate of 48 a day between 2002 and 2006 — more than 17,500 a year, according to experts who have analyzed government statistics. At least 160,000 farmers have committed suicide since 1997, said K. Nagaraj of the Madras Institute of Development Studies.

The epidemic dates to the 1990s, and is generally attributed to a toxic blend of slashed subsidies, tougher global competition, drought, predatory moneylenders and expensive genetically modified seeds.

"It's one of the largest public health disasters to hit India since independence," said professor Charles Nuckols of Brigham Young University, an anthropologist who has studied Indian village life for decades.

In northern India, authorities have gone so far as to ban a type of cheap hair dye because it was being drunk to induce death by kidney failure.

But it is India's cotton belt, a land of searing temperatures and backbreaking work, that has been hit hardest by the suicides.

In rural Maharashtra state, farmers say things have never been harder. Owing more than they earn, these steadiest of workers have become gamblers of the highest stakes, betting their land — and their lives — on one more good crop.

Prime Minister Manmohan Singh has visited some of the widows, and the 2008 budget offers some debt relief.

But the farmers say their plight is largely being ignored as the country rushes to embrace the global marketplace. Few find it reassuring that India's agriculture minister, Sharad Pawar, doubles as the nation's top cricket official.

A decade ago, the government began cutting farm subsidies as it liberalized the managed socialist economy. The farmers' costs rose as the tariffs that had protected their products were lowered. It was a combination, analysts say, that made small farms even harder to sustain.

"Suicide is one of the symptoms of the larger agrarian crisis," said Srijit Mishra of the Indira Gandhi Institute of Development Research.

Meanwhile, banking reforms forced farmers to be more dependent on private moneylenders. These generally allow the farmers only 11 months to pay back their loans at interest rates of more than 100 percent a year, or else they seize the land at a drastically reduced rate.

"It's not a nice business," said one village moneylender, who agreed to be interviewed if he was not identified because he was unlicensed. "But you earn a lot of money."
JanforGore

21 responses // Debt woes drive thousands of Indian farmers to suicide

  • hopefully things will turn around for them as food prices continue to rise.
    riverdeer
  • and americans think WE have it bad...
  • I think this also illustrates that microlending does not always lift all out of poverty and in some cases actually brings them more poverty. Giving loans to people at 100% interest rates you know they cannot pay back is criminal and inhumane. And this is what is brings. Now those women whose husbands have killed themselves will have to learn how to make it on their own with their children in societies where women are not treated equally economically. And they have no recourse.
    JanforGore
  • it is sad - but if you're a good Hindu you've got aeons of re-incarnations to kill until the economy eventually turns around .
    malathion
  • Dr, Vandana Shiva on farmer suicides, modified foods, the U.S.- India nuclear deal, and Walmart in India. Walmart BTW, is in the microlending business in Mexico and it is an insidious way of keeping people in poverty by giving small loans to uneducated poor people at exhorbitant interest rates to take advantage of them. This is a war on the poor we are seeing on a global scale. I believe this story is just one sad repercussion of it.
    JanforGore
  • The average US citizen doesn't comprehend the true meaning of debt, other avoiding overdue Visa payments.
    For example, I've yet to hear a college student say, "Oh man. If I don't get my debts under control, they'll be nothing to leave my family and they will starve to death."
    We have the option of not thinking that far ahead.
    huntre
  • Jan, I think you may be confusing some micro lending institutions with these banks and money lenders. Micro lending charges extremely small or no interest on money loaned. The money I lend though KIVA makes zero interest. The 100% interest rates you mention just sound like shifty banks and hard money lenders and not at all a reflection of micro lending. but maybe there is a specific institution you are talking about here?
    twodee
  • From the article above:

    "Meanwhile, banking reforms forced farmers to be more dependent on private moneylenders. These generally allow the farmers only 11 months to pay back their loans at interest rates of more than 100 percent a year, or else they seize the land at a drastically reduced rate.

    "It's not a nice business," said one village moneylender, who agreed to be interviewed if he was not identified because he was unlicensed. "But you earn a lot of money."

    Also, Walmart (which i aslo mentioned here) is in the microlending business and their interest rates are obscene.

    JanforGore

  • "Suicide is one of the symptoms of the larger agrarian crisis," said Srijit Mishra of the Indira Gandhi Institute of Development Research.

    The agrarian crisis is also caused by government collusion with foreign development firms who come into the land to build dams and industrial infrastructure; many people have been displaced without due process or any support.

    We need to rethink global development; most "development" loans are in fact tools of corruption whereby the ruling elite of a developing country allow foreign investors to build infrastructure that is used to remove natural resources from the land and/or to exploit the work force via a lack of enforcement of human rights. The country's citizens are saddled with the national debt, the ruling class pads their foreign bank accounts, and the foreign investors make billions while destroying the earth and creating conditions that when farmers are committing suicide its no longer a breaking news story.

    There is a problem when the government of a 2nd or 3rd world country spends 40% of its annual revenue on making minimum payments on its international development loans; these are payments that do not even effect the outstanding debt but are merely servicing the interest incurred by the ballooning debt.

    One of the core underlying problems in the global commons is the way that we define progress. Neo-classical economics is flawed; its logic is what has built this nightmare machine that is spinning out of control.
    Rainfall_Media
  • again, these are the corrupt money lenders and not the micro lending community as it was designed to be. It is unfair and not correct to put down micro lending in general over the few who have taken advantage of the movement and the people in need of help.
    twodee
  • and they got pissed off at a picture of a penis in front of the taj mahal. brilliantly done india, serving your country well...
    diode
  • But I'm not doing that. I mentioned the ones who were bad (case in point Walmart which is now in India.) I never mentioned KIVA and never stated it was all bad.
    JanforGore
  • sorry Jan. Your right. I am a bit jumpy on that issue. Maybe I was just needing clarification. Maybe I am a bit jumpy about everything these days. I see too many smart and good people not even trying and I reach moments of freak out. Jan,,, you are certainly one of the greats and I respect your posts here very much. keep up the great work.
    twodee
  • No problem. I understand where you are coming from, and actually think KIVA is one of the good ones. Thanks for all of your work too.
    JanforGore
  • Reading this makes the idea of a world as a global village a scary place to exist.
    160,000 human beings lost to SUICIDE that is 14545 per annum in just one country to one easily preventable circumstance and we have the audacity to refer to this global joke as a village...?
    Where are those philanthropic individuals huh...? Bill Gates, Bono, Sir Geldof to name a few.
    This is where the problem starts.We all eat the staples these people produce and we are all going to sit back and watch them wiped off the face of the Earth?
    No wonder the price of food is on the rise globally.
    I only hope organizations like kiva.org take note and try to reverse this gross malady on the most deserving on this globe.

    KIVA.org please take note.
    jhydo
  • "The money I lend though KIVA makes zero interest. The 100% interest rates you mention just sound like shifty banks and hard money lenders and not at all a reflection of micro lending."

    Just to clarify. The money you lend makes zero interest to you, or to Kiva, but according to kiva's website, it makes on average 22.31% for the local lending partner. This is compared to an average local rate of 83.29%. Many of the lending partners charge upwards of 40%. Check out the partners before you lend, not all are equal.
    thesundial
  • thanks for looking into that Sundial. Looks like I picked a good choice with KIVA according to the average percentage rate. I will be sure and take a close look at the partners. They should be making something for the work they do in the field. I am always sure to send money for KIVA's operational costs as well.
    twodee
  • I don't understand how committing suicide is solving these farmers' problems. I am not trying to be unsympathetic but it seems that these farmers are taking the easy way out. They kill themselves and then their wives and children are left with the same problems. Is shame really a good enough reason to selfishly abandon your family by committing suicide?
    sapere_aude
  • It is difficult to understand another culture/religion/economy without spending time with these things. I am not sure "selfish abandon" and the "easy way out" are what these people had in mind when they got into such a difficult situation.
    twodee
  • The level of poverty suffered by these people leaves a psychological and spiritual toll we cannot know here even for all of our problems. Perhaps before we try to understand the economic side to this we need to understand the cultural side to these people as I really do not on the whole believe it is just the economic hardship they are thinking of when they do this. The interview with Dr. Vandana Shiva that I posted above gives a perspective on this. Western globalization is also killing them.
    JanforGore
  • I think there is a point that's missing here. Corporations (like Monsanto)that are pushing for control of the food supply are forcing countries like India to accept genetically altered seed. One of the things they due is lobby for lower subsidies for small farmers. The farmers can't compete and borrow money which sends them into debt. The micro lenders are only a small piece of the puzzle.
    andromeda

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