How to stop farmer suicide?

Bikash Choudhury



Back ground: In recent past, news paper headline about farmer suicide has become so common that most of us have taken into our stride and move on with our life; however, the problem still persists and would continue to hunt unless and until a permanent solution this problem is found and attempted to implement with all seriousness and effectively. NABARD the nodal agency for development of Agriculture and Rural development must examine the following Idea.

Problem: Farmers are at the receiving end in terms of cost of credit from financial institutions, marketing their produce and storing their produce due to lack of local warehousing facility in the vicinity and further, due to lack of suitable market knowledge about demand for alternative crops; they continue to produce unproductive and un remunerative crops years after year and suffer under the weight of debt and some times few of them sacrifice their life for good. Is their any alternative?

District Co-operative banks: With the help of NABARD each District Co-operative Banks in the country can create an Agriculture & Rural Development Consulting Business division to advise the farmers in entire area in the business of agriculture to help farmers make decent profit. Earlier, commercial banks and Gramya Banks had policy of recruiting Agriculture officers but that policy did not make much impact. Therefore, current policy must be designed in such a manner that would add a new area of competence in DCB and also bring in a new source of revenue. To make that happen, consulting division must recruit highly competent and experienced professionals at market rate of compensation and drive them to create value in the domain of agriculture.

Money lenders: There is a saying ‘if you can’t beat them then join them’ this metaphor is applicable to village money lenders. One more attempt can be made by DCB with due assistance from NABARD to rope in all village money lenders as Banking correspondent of DCB to collect deposits and offer other services at much lower transaction cost to co-operative bank.

NABARD may consider implementing these Ideas in 100 District Co-operative Banks in the country at an investment of Rs 500 Crores.