Six major reasons for this farmer suicide

1) Liberal import of agricultural products

The recent globalization has relaxed the import policies of the government which has resulted
in liberal import. Though it has reduced prices in the market, it has affected farmers as their
products have become unprofitable. They were not given any protection and they had to stop
production partly or fully. The government which had to give higher price for importing did
not come forward to protect the farmers in reality.

2) Cutback in agriculture subsidies

The government reduced different types of subsidies due to the fluctuations in the market.
According to Ram Chand, an economist, cutback in subsidy and control of fertilizers has
adversely affected Indian agriculture. It increased the input cost and made agriculture less
profitable. The central government budget keeps total silence about subsidy apparently since
it goes against the regulations of World Trade Organization.

3) Lack of easy financial assistance to agriculture

Recently the lending pattern of Indian banks has drastically changed and as a result loans
were not easily available for farmers. Another drawback was that the interest for the loan
amount was not easily affordable. This has forced the farmers to rely on money lenders
throwing their condition from the frying pan into fire. Consequently the expenditure on
agriculture was pushed up beyond the bearing capacity of the farmers.

4) Decline in the Government investment in agricultural sector

After globalization, the government expenditure and investment in agriculture has been
drastically decreased because of its policy of minimum intervention. The expenditure of the
government in rural development including agriculture, irrigation, flood control, village
industry, energy and transport declined from an average of 14.5% to 6%. The rate of capital
formation of agriculture came down, and the agricultural growth also was much reduced
affecting the lives of farmers very much.

5) Low support price for farm products

The farmers were affected from both sides, from the government side and from the market
side. They were no getting remunerative price for their products. No effort was made for
price stabilization.

6) Lack of food security

The public distributing system in the country is very poor aiming only at the vote bank. The
poor security of food products has a very negative impact on agricultural market. India has
starving. Yet food stocks are rotting in open storage places. Greedy middlemen are exploiting
the situation. Hunger and malnutrition are forcing the poor Indians to despair and death.

The situation of the Indian farmers is a call to the world at large to reconsider the effects of
globalization. It is a call to the global family to come forward to a collective effort to come
out of selfishness.