Volume : 3, Issue : 5, May - 2014

Indebtedness and Farmer Suicide in the Liberalized Economy of Punjab

Dr. Mandeep Gaur

Abstract :

Punjab is considered self sufficient in food production. It led the Green Revolution of the country and was crowned as Indians’ ‘ead basket’. It is one of India’s most prosperous and developed states with a low poverty rate. According to National Human Development (2001), it is ranked as second state of the country (first being Kerela) in terms of overall National Human Development. But, the other side of the picture seems very dark. Many facts indicate that the ‘development story of the state is very much of a delusion. Rural economy of Punjab is based on agrarian and allied activities, mainly livestock. The swelling cost of production and commercialization has made Punjab agriculture high cost and risk prone to crop failure. The falling income and unproductive expenditure on religious as well as social ceremonies has made the peasants debt–ridden. In 1997, the approximate indebtedness of Punjabi peasants mounted to 5700 Crores. Hence, the number of farmer suicides escalated in the state. According to a pilot survey conducted by Punjab Agriculture University, Ludhiana (2008), 2890 farmers committed suicide in Bathinda and Sangrur districts only during 2000–2008. Indebtedness was the major reason behind this phenomenon. The burden of debt and constant pressure of social–stigma compelled these farmers to take this drastic step. Consequences of rural indebtedness are disastrous. Economically, rural indebtedness has resulted in the extreme poverty of the farmers (esp. marginal and small farmers). Land is passing into the hands of non–agriculturists and these farmers are becoming landless. Socially speaking, rural indebtedness is creating a class of landless labourers and tenants. It is resulting in bonded labour and many other evils. Thus, we can say that ‘development’ is a cumulative force and should influence social as well as economic growth. The disequiliium in agrarian society is leading to wrong tendencies like drug abuse and suicides. For preserving its ‘ead basket’ crown, Punjab should try to better the lot of the agrarian community, particularly of the marginal and small farmers. The State must device institution and norms which may assure real economic and social development of the agriculturists.