Action Aid Centre for Sustainable Agriculture AP Rytu Swarajya Vedhika Jayati Gosh Commission,2004 The economic strategy of the past decade at both central government and state government levels has systematically reduced the protection afforded to farmers and exposed them to market volatility and private profiteering without adequate regulation, has reduced critical forms of public expenditure, has destroyed important public institutions, and did not adequately generate other non-agricultural economic activities.
While this is a generalised rural crisis, the burden has fallen disproportionately on small and marginal farmers, tenant farmers and rural labourers, particularly those in dryer tracts. The most extreme manifestation of the crisis is in the suicides by farmers. 0 500 1000 1500 2000 2500 3000 y e a r 1 9 9 5 1 9 9 6 1 9 9 7 1 9 9 8 1 9 9 9 2 0 0 0 2 0 0 1 2 0 0 2 2 0 0 3 2 0 0 4 2 0 0 5 2 0 0 6 2 0 0 7 2 0 0 8 2 0 0 9 2 0 1 0 2 0 1 1 Farmers suicides in Andhra Pradesh No. of suicides Source: NCRB 1995-2011 Total 33,326 in 17 years Reactions to agrarian crisis States response Draft Agricultural policy, 1998 Jayati Gosh Commission, 2004 GO 421 Justice Rama Chenna Reddy commission, 2006 Technology Mission, 2005 IFPRI report, 2007 Cooperative Farming Act 2008 Mohan Kanda Committee, 2011
What actually done Technology as solutions: only industry benefited All govt schemes used to help industry Export markets: traders benefited Always blame centre on MSPs or regulation Land ownership concentrating and Land use shift
State Farmer Suicides Difference (2 nd Avg-1 st Avg) 1995-2002 2003-2010 Andhra Pradesh 1590 2301 +711 Assam 155 291 +135 Karnataka 2259 2123 -136 Kerala 1292 1071 -221 MP+Chhattisgarh 2304 2829 +525 Maharashtra 2508 3802 +1294 Tamil Nadu 992 866 -126 Uttar Pradesh 640 531 -109 West Bengal 1426 990 -436 The table only includes States whose annual averages have risen or fallen by over 100 farm farm suicides between the to periods. It also treats Madhya Pradesh and Chhattisgarh as one unit for data purposes. Source: NCRB Accidental Deaths & Suicides in India Reports 1995-2010 Female Male Total upto 14 years 12 4 16 15-29 years 165 563 728 30-44 years 137 824 961 45-59 years 40 573 613 60 years & above 41 166 207 Total 395 2130 2525 Farmers Suicides in AP (2010) Source: NCRB, 2010 Centre for Sustainable Agriculture Farmers Suicides Distribution, 2010 Female Male Total % upto 14 years 12 4 16 0.63 15-29 years 165 563 728 28.83 30-44 years 137 824 961 38.06 45-59 years 40 573 613 24.28 60 years & above 41 166 207 8.20 Total 395 2130 2525 Jayati Gosh Commission Recommendations
correct spatial inequities in access to irrigation and work towards sustainable water management bring all cultivators into the ambit of institutional credit, including tenant farmers shift policies to focus on dryland farming through technology, extension, price and other incentives encourage cheaper and more sustainable input use, with greater public provision and regulation of private input supply and strong research and extension support protect farmers from high volatility in output prices emphasise rural economic diversification, to more value- added activities and non-agricultural activities.
Deep economic crisis Reducing incomes Yield stagnation Increasing costs of cultivation Increasing small holdings Increasing tenancy Reducing institutional credit All the policy supports are skewed towards large farmers, large farms, few cash crops and high external input based production systems Check list for verification of FARMERs suicide cases IN ANDHRA PRADESH G.O No. 421 1. First Information Report (FIR) 2. Panchanama report 3. Post Mortem Report (PMR) 4. Forensic Science Lab Report (FSL report) 5. Final report (These five documents are available from police station) 6. Private loan documents 7. Bank loan documents 8. Land Pass Book 9. Dependents certificate 10. Ration card 11. Three years agriculture pahani 12. Mandal level verification committee report (MLVC). (Three Member Committee consists of Mandal Revenue Officer (MRO), Police Sub Inspector (SI) and Agriculture Officer (AO)) 13. Division Level Verification Committee Report (Three Member Committee consists of Revenue Divisional Officer (RDO), Deputy Superendent of Police (DSP) and Assistant Director of Agriculture (ADA))
List of Genuine Farmer Suicides by Government of Andhra Pradesh (January, 1997 to 2011)
Class-wise Relative Shares of Operational Holdings in A.P (percentages) Source: From Various NSS rounds 1956-57 1980-81 2005-06 Holdings Area Holdings Area Holdings Area Marginal Farmers (0-1 ha) 38 8 51 13 62 23 Small Farmers (1-2 ha) 18 10 22 17 22 26 Medium Farmers (2-10 ha) 33 44 25 50 16 45 Large Farmers ( >10 ha) 9 38 2 20 <1 6
Source: From Various NSS rounds Cropping Pattern Changes in Andhra Pradesh for Selected Years (million Hectares) 1970-73 1987-90 2004-07 2009-11 Rice 3.1 (24.76) 3.9 (30.65) 3.6 (28.54) 4.3 (31.15) Maize 0.2 (2.12) 0.3 (2.33) 0.7 (5.53) 0.8 (6.16) Other coarse Grains 4.1 (32.73) 2.1 (16.47) 0.6 (5.05) 0.3 (2.21) Total Cereals 7.6 (59.61) 6.3 (49.46) 5.6 (39.13) 5.6 (40.57) Pulses 1.3 (10.79) 1.5 (11.85) 1.8 (14.39) 1.7 (12.3) Total Foodgrains 8.9 (70.42) 7.8 (61.31) 6.9 (53.52) 7.4 (53.6) Cotton 0.3 (2.47) 0.6 (4.8) 1.0 (8.23) 1.1 (8.2) Oilseeds 2.2 (17.51) 3.8 (24.74) 2.6 (20.91) 2.7 (19.5) Total Non- Foodgrains 3.7 (29.57) 4.9 (38.69) 5.9 (46.94) 4.7 (34.05) Gross Cropped Area 12.7 (100.00) 12.8 (100.00) 12.8 (100.00) 13.8 (100.00) Source: DES. AP Govt Cost of Cultivation per Acre in A.P. in Rabi 2010-11 in Sample Households (Rs) District East Godavari Krishna Karim nagar Mahabub Nagar Medak Nalgonda Nizama bad Waran gal Av Cost Cost A1 21643 24623 20196 20909 18162 19725.62 19507 22437 20380 Cost A2 30084 25914 23184 23009 20112 22225 22007 24437 23872 A2+FL 35413 32051 28105 27294 25844 25531 24091 30278 28576 Cost B1 21645 20490 20248 20979 18231 19788 19563 22515 20432 Cost B2 38085 31126 25736 25079 22181 24788 24563 26515 27259 Cost C1 26973 26627 25169 25264 23963 23094 21647 28356 25137 Cost C2 43414 37264 30657 29364 27913 28094 26647 32356 31964 Cost C3 47755 40990 33723 32301 30704 30904 29312 35592 35160 Yield 26 21 27 17 27 25 28 27 Source: Field study; Cost A1: All paid-out costs except rent; Cost A2= Cost A1+Rent on leased- in land; Cost A2+FL = CostA2+Family Labour; Cost B1 = cost A1+ interest on fixed cost; Cost B2 = Cost A2+Imputed Rent on Own land; cost C1= costB1+imputed family labour, Cost C2=Cost B2+family labour, Cost C3 = Cost C2+ 10 percent managerial input.(Cost C2* is also defined to consider minimum wages in case they are higher than actual labour.) [source: Cost of Cultivation Manual, published by CACP, 2005]
Prices to Farmers during 2010-11 and 2011-12 Crop 2010-11 Rs/Quintal 2011-12 Rs/Quintal Cotton 6500 3600 Turmeric 14000 4000 Chillies 12000 5500 Redgram 5000 3500 Blackgram 5200 3500 Bajra 4000 2000 Jowar 2500 1800 Onion 16000 2500 Sweet Organge 75000 60000 Credit still a mirage Decreasing rural branches, increasing share of loans of more than a crore, villages left to high cost Microfinance No credit access to tenant farmers who form more than 25% of cultivators During 2012-13 against the target of Rs. 37,127.77 crore (Rs. 23,827.50 cr kharif target) loans disbursed were 23,282.82 cr. Target was also to cover 12 lakh tenant farmers (2000 cr) but only Rs. 183 cr was sanctioned. Among the 12 lakh tenant farmers loan elgibility cards were given only to 3.88 lakhs (1.57 lakhs new and remaining 2.31 were renewed) Only 85,000 tenant farmers have got access to credit Total amount sanctioned as loan is Rs. 183.03 and more than half of it goes to West Godavari district
Lift Irrigation Schemes in AP Today 3,000 mega watts power is supplied freely to agriculture for 29 lakh pump sets
By 2012 AP needs 12,682 Megawatt power 47 lakh ha would be brought under irrigation Seven and half horse power motor will be used for every 10 acres and five lakh such motors have to be installed in the next four years Needs 37.5 lakh HP electricity (2775 mega watt) Major lift irrigation schemes needs 6407 mega watt Minor lift irrigation schemes needs 500 mega watt to produce and supply one mega watt power Rs. 4 cr to create infrastructure to produce Rs. 4.5 cr for transmission and distribution CASE STUDIES: ANDHRA PRADESH DISTRICTS COVERED Ananthapur, Nalgonda, Khammam, Adilabad, Medak, Warangal, Mehbubnagar.
PROFILE OF THE SUICIDE FARMERS 90% MALE ,10% female farmer 30-45 YEARS ONE FORWARD & OTHER BACKWARD CASTE GROUP. TWO SCHEDULED TRIBES ONE SCHEDULED CASTE RELIGION: HINDU AVERAGE FAMILY SIZE: 5 MEMBERS OWN, SEMI-PUCCA & THATCHED HOUSES. OWN AGRICULTURE IMPLEMENTS I.E, TILLER. WOMEN FARM LABOUR RABI SEASON. COMBINATION OF OWN LAND & LEASED DEBT BURDEN RANGE BETWEEN RS. 30,000 TO 3,00000 /-. MULTIPLE LIVELIHOODS (FARM LABOUR, DAIRY, SELLING VEGETABLES, NREGA) NO LEGAL TITLE TO LAND OWNERSHIP AMONG SC & ST FARMERS. NO CROP INSURANCE OR LIFE INSURANCE. BENEFICIARIES OF INDIRAMMA HOUSING SCHEME.
7 1 2 0 BC SC ST OTHER PROFILE OF THE VILLAGES DROUGHT PRONE REGIONS OF TELANGANA. LAND OWNERSHIP PATTERN: OWN/ LEASED. RAINFED AGRICULTURE/ SCARCITY OF GROUNDWATER. MIGRATION. POOR EXTENSION AGRICULTURE SERVICES. SHIFTED TO COMMERCIAL CROPS & GAVE UP TRADITIONAL CROPS. LIMITED ACCESS TO FORMAL CREDIT SOURCES. LARGER ROLE OF PRIVATE MONEYLENDERS. WEAKENING OF SOCIAL SUPPORT SYSTEMS. ACCESS TO MARKET SERVICES IS POOR.
STATUS OF LAND/ CROPPING PATTERN LAND HOLDING SIZE: 2AC 5 AC. TYPE OF LAND: DRY LAND TYPE OF SOIL: LAND LEASED: 3 AC 10 AC ( WET LAND) LEASE RENT: RS. 6,000/- TO RS. 13,000/- PER ACRE. NO DOCUMENTATION OF THE LEASED LAND: SC & ST FARMERS.
COST OF CULTIVATION PESTICIDE, SEEDS, IRRIGATION, INTER-CULTIVATION, HIGH LABOUR COST (MANUAL WEEDING, MANUAL FERTILIZER APPLICATION, SPRAYING..) TRANSPORTATION.
EXAMPLE PADDY CASE
LABOUR COST: 1980S: RS. 1.00 PER DAY. 1990S: RS. 5300/- (SOWING TO HARVEST). 2000: RS. 13,000/- (SOWING TO HARVEST).
CAUSES NATURAL AND MAN MADE WEATHER VAGARIES SPELLS OF DROUGHT. SPELLS OF RAINFALL (UNSEASONAL RAINFALL..JUST BEFORE HARVEST). LACK OF TIMELY POWER SUPPLY. SELECTION OF CROPS. LAND TENANCY RATES. SCARCITY OF GROUNDWATER. LACK OF TIMELY AND ADEQUATE CREDIT SUPPLY FROM FORMAL SOURCES. CROP FAILURE. LABOUR SUPPLY, HIGH LABOUR CHARGES INCREASED PRESSURE ON PAYING OTHER LIABILITIES ; NAMELY INDIRAMMA HOUSING. PERCIEVED FAMILY RESPONSIBILITY OF GIRL CHILD (TEENAGE DAUGHTERS). HEALTH ISSUES. SOCIAL STATUS. ENERGY SUBSIDIZATION : FAILURE OF BOREWELLS.
7.00 6.00 5.00 4.00 3.00 2.00 1.00 Weather Vagaries Irrigation Credit Girl Child Land Tenancy Indirrama Housing Health PATTERN OF SUICIDE CONSUMPTION OF PESTICIDE. HANGED. ELECTRICITY.
8 1 1 Pesticide consumption Electricity Hanged IMPACT OF SUICIDES LOSS OF BREAD WINNER IN THE FAMILY. PSYCHOLOGICAL DISTRESS TO FAMILY. INCREASED SOCIAL STIGMA. IMPACT ON CHILDRENS EDUCATION. LOSS OF ASSETS: DOMESTIC ANIMALS, AGRICULTURE IMPLEMENTS. MOVING FROM OWN FARM LABOUR STATUS TO PERMANENT LABOUR STATUS. FAMILY MEMBERS ATTEMPTING SUICIDE. CHILD LABOUR. PHYSICAL HEALTH.
WAY FORWARD PREVENTIVE MEASURES 1. AGRICULTURE EXTENSION SERVICES. 2. PROVIDE FINANCIAL LITERACY ( HOW TO USE CREDIT, WORK OUT ON COST-BENEFIT ANALYSIS OF INVESTMENT, RISK COPING MECHANISM I.E., INSURANCE CROP & LIFE, INCREASING SAVINGS). 3. BUILDING SOCIAL SYSTEMS & STRENGTHENING THEM ( FARMERS GROUPS EXPOSURE TO DIFFERENT COPING MECHANISMS, BEST AGRICULTURE PRACTICES). 4. FOCUS ON CREATING ALTERNATE LIVELIHOODS. 5. ENCOURAGE MULTIPLE CROPPING. 6. GENERATE AWARENESS ON PESTICIDE USAGE. 7. PROVIDE TIMELY GOVERNMENT INPUT SUBSIDY TO THE FARMERS. 8. PROVIDE QUALITY OF SEEDS. 9. GOVERNMENT IN ADVANCE SHOULD STATE THE PREMIUM PRICE FOR THE CROPS. WAY FORWARD. REHABILITATIVE MEASURES 1. COUNSELLING TO FARMERS FAMILY. 2. FACILITATE IN ACCESSING BENEFITS OF VARIOUS GOVERNMENT SCHEMES. 3. PROVIDING GUIDANCE ON BUILDING ALTERNATIVE LIVELIHOODS (NON-FARM EMPLOYMENT) TO FAMILY DEPENDENTS. 4. PROVIDE HEALTH INSURANCE SERVICES. 5. PROVIDE SEED SUPPORT. 6. INTEREST FREE LOAN. 7. PROVIDE COST OF CULTIVATION SUPPORT (MANURE). 8. PROVIDE TANK SILT (RED SOILS).
Main Causes Rising costs of cultivation; high dependence on external inputs Unremunerative prices do not cover costs of cultivation, let alone rising living costs Unsustainable cropping patterns and production practices Trade liberalization and export-import policies Lack of support systems like credit, insurance, markets, storage, farmer collectives Neglect of rainfed agriculture What government can do? Immediate Measures Immediate compensation for crop failure Remunerative prices, direct procurement from farmers Modify export/import policies and tariffs in favour of Indian farmers Provide ex-gratia and loan repayment support for all families of farmer suicides in time-bound manner
What government can do? Addressing Root Causes Price Compensation system for all food crops: when MSPs or market prices are less than Target Price (Cost of Cultivation + 50%), the difference should be paid directly to farmers Guarantee minimum living incomes to all farmers Promote sustainable agriculture which reduces cost of cultivation and crop risk Comprehensive rainfed agriculture mission based on diverse cropping systems, protective irrigation and livestock systems
What government can do? Addressing Root Causes (contd) Bank credit to all farmers with adequate scale of finance Effective crop insurance to cover all crops and all farmers Inclusion of tenant farmers in all support systems
What government can do? Parliamentarians should demonstrate their serious intent of addressing agrarian crisis Day-long joint session of Assembly/Parliament to discuss farmer suicides and agrarian crisis Constitute a Parliamentarians/MLAs Forum on Agrarian Distress to address the causes of the crisis