Saturday, February 02, 2008

Loans and Farmer Suicides

Loans and Farmer Suicides

Indian mornings are become used to read / watch news of suicide by the farmers especially from the states of Maharashtra and Andhra Pradesh. As the economic growth of the country is going high so the tendency of suicide is increasing among the Indians, surely this is matter of analysis is there any relation between the economic growths and suicidal death tolls?

Statistical figures are suggestive that if we compare the farmer suicide tolls in the era after 1991, the year of start for the second phase economic reforms in the country, with the time prior to that, we are bound to find that in the recent times death tolls are many times higher to era prior to 1991. I am just an awake citizen neither an experts of human psychology nor have much experience in the field of consumer and personal loans, however my findings might prove sufficient to suggest solution roads for the experts of the field and governments.

Liberal economics policies of Indian government are working for raising the economic growth rate and GDP of the country. Markets are not going under the phase of deficit of liquidity. Ample amounts are available for the taking in the form of various loans from the banking sector and financial companies. Indian markets, over crowded with commodities of physical comforts are proving almost non resistible temptation for the Indians who are looking forward to raise the living standard with the availability of these commodities at home. Just look at life of common Indian, not only in the cities but also in the village mobiles have become essential for normal living. A significant growth in the family earnings and too much easiness in availability of loans are the prompting factors and increasing the buying powers of middle class Indians. I have tried to look at city life of medium population cities like the
Kolhapur and surprise to know that almost every forth person from the business class and working class is in the loan web if not for more at least for one type of loan. In the villages of developed states like the Maharashtra, Punjab and Andhra Pradesh etc. situations are more resembling with the life of small cities and might this be the root cause of increased suicidal tendency.

In the agricultural sector Indians have covered miles and miles on the road of progress. Increased irrigation facilities and supportive activities like the poultry and milk producing cattle are working for boosting the earning capacities of the farmers. It is a fact that still a lot of Indian land is without irrigation facilities and factors like the increasing competition and high going expenses of meeting with care of birds and cattle are proving obstacles for the farmers for being with sufficient liquidity of money. Uncertain climatic conditions like the heavy or less rain, extreme high or low temperatures are also working for the decline in the income of farmers. In all these situations, loans taken not only stands as it is but keep on increasing with the interest and penal interests of banks, co-operative societies and financial companies. If one can work on the number of ceased vehicle by the finance companies for non payment of EMI’s the picture will be clear about the repayment capacities of small city and village population of India.

It is often said loans/ Debts are the guest of the life; they entered into your life with greeting, welcoming you as the realization of dream and keep on living and growing with you. Only very strict and time bound economic disciplines are the only remedy for getting rid of these. Is the common Indian farmers are with the wisdom of having such capacities? Is the question and answer to this is, where the solution for the suicidal tendency is lying.

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