India’s agriculture sector, employing nearly half the country’s workforce, is facing a crisis that runs deeper than seasonal crop failures or occasional droughts. When government surveys reveal that a significant proportion of farmers no longer wish to continue farming, it signals something fundamentally broken in the world’s second-largest agricultural economy. This agrarian distress manifests not just in economic statistics but in the tragic phenomenon of farmer suicides, persistent rural poverty, and an exodus from farming communities that threatens the nation’s food sovereignty.

Table of Contents

Farmers’ reluctance to continue agriculture

One of the most telling indicators of the agrarian crisis comes from the National Sample Survey Office’s Situation Assessment Surveys. These comprehensive surveys have consistently shown growing disillusionment among farming households. Research indicates that approximately 40% of Indian farmers have expressed unwillingness to continue in agriculture, with a substantial portion citing the non-viability of farming as their primary reason.

This is not merely a matter of preference but a survival calculation. According to analysis of NSS data, 96.2% of farmers owning less than 4 hectares of land find their monthly expenses exceeding their average income from all sources. Only the top 3.8% of farmers manage to maintain a surplus. The share of agricultural households in rural India has been declining, dropping from 57.8% in 2013 to 54% in 2019, indicating a gradual but steady exit from farming.

The situation is particularly dire for marginal farmers. Those possessing less than 0.01 hectare plots frequently do not rely on agriculture as their principal source of income, instead depending on wages or employment salaries. More than half of agricultural households in India are in debt, with southern states like Andhra Pradesh (92.9%), Telangana (89.1%), and Tamil Nadu (82.5%) showing the highest levels of indebtedness.

Root causes of agrarian distress

The agrarian crisis in India is not a simple problem with a single cause. Scholars and agricultural economists have identified a complex web of interconnected factors that have progressively weakened the agricultural sector.

Stagnation and declining productivity

Agricultural growth in India decelerated significantly after the mid-1990s, with GDP in agriculture growing at only around 2% per annum after having grown at 3.6% between 1980 and 1996. This stagnation occurred precisely when farmers needed higher returns to cope with rising input costs and changing consumption patterns. The much-celebrated Green Revolution, while initially transformative, has arguably reached its limits, leaving behind exhausted soils and depleted water tables.

Collapse of extension systems and institutional vacuum

The agricultural extension system, which once served as the critical link between research institutions and farmers, has severely deteriorated. The degeneration of government-supported agricultural extension programmes has left farmers without reliable guidance on new technologies, pest management, and sustainable farming practices. Research and extension failures, particularly in rain-fed areas, have pushed farmers toward dependence on unregulated input sellers whose advice is driven by sales targets rather than farmer welfare.

The breakdown extends beyond extension services. Agricultural extension programmes that once provided financial literacy, facilitated financing, and promoted risk management have become inadequate. Village-level institutions that previously offered counselling and support have weakened, leaving farmers isolated when facing crises.

Technology fatigue and policy challenges

Experts have identified what they term “fatigue of technology, institution, policy, and governance” as a fundamental challenge. The introduction of new agricultural technology often comes with inadequate knowledge transfer and insufficient state support. Inferior quality of inputs, non-availability of these inputs on time, sudden pest and disease attacks, and volatility of market prices combine to create an environment of constant uncertainty for farmers.

The underlying reasons for agrarian distress, as identified by economists at the Indira Gandhi Institute of Development Research, include unviable agriculture, ineffective Minimum Support Price systems, adverse terms of trade, rural indebtedness, and inefficient value chains. These structural problems require systemic solutions rather than short-term fixes like loan waivers.

Policy response: The push for inclusive growth

The mounting criticism of economic reforms and their uneven impact on rural India forced policymakers to reconsider their approach. The Eleventh Five Year Plan (2007-2012) marked a significant shift in policy orientation, with its central theme being “Faster and More Inclusive Growth”.

The plan explicitly acknowledged that reversing the deceleration in agricultural growth was a key element of the strategy for inclusive growth. It set an ambitious target of 4% annual growth in agricultural GDP, recognizing that agricultural growth had always been critical for inclusiveness in India. The plan aimed to improve technology accessibility to farmers, ensure optimal use of natural resources, attract public investment, promote diversified agriculture, and address food security concerns.

The Eleventh Plan introduced several programmes including the National Food Security Mission (2007-08) for boosting production of rice, wheat, and pulses, and the Rashtriya Krishi Vikas Yojana to encourage public investment in agriculture and allied sectors. These initiatives represented a direct response to the widespread exclusion and marginalization in the agrarian sector that had characterized the preceding decades of economic liberalization.

The multidimensional nature of the crisis

Perhaps the most troubling aspect of India’s agrarian crisis is its paradoxical nature. The crisis manifests differently across regions, affecting both backward and prosperous agricultural states, though through different mechanisms.

Suicides in prosperous states

Punjab, often called the “food bowl of the country,” presents a particularly stark example. Farmer suicides in Punjab increased nearly fourfold after 2015, jumping from roughly 70 suicides annually between 2000 and 2014 to 263 per year after 2015, peaking at 323 in 2018. According to National Crime Records Bureau data, about 51% of farmer suicides in Punjab were attributed to high levels of indebtedness to institutions.

What makes Punjab’s situation paradoxical is that farmers there traditionally earned among the highest incomes in the country. Yet farming in Punjab has become increasingly expensive. The state witnessed 16,606 farmer and agricultural labourer suicides during 2000-2015. Small and marginal farmers, particularly those operating 1-2 hectares, emerged as the most vulnerable category.

Maharashtra, despite being among India’s more developed states, has consistently recorded very high numbers of farmer suicides, particularly in the Marathwada and Vidarbha regions. Nearly 400,000 farmers in India took their own lives between 1995 and 2018, translating to approximately 48 suicides daily. The majority were from marginalized castes, highlighting how agrarian distress intersects with social disadvantage.

Invisible suffering in backward regions

While farmer suicides grab headlines, they represent only the visible tip of a much larger crisis. Across backward regions, families face unregistered starvation and chronic malnutrition. The crisis extends beyond those who take their lives to encompass millions suffering silently from declining returns on cultivation, mounting debts, and the absence of alternative livelihoods.

National Crime Records Bureau data reveals that 296,438 farmers died by suicide between 1995 and 2014, with another 100,474 deaths recorded between 2014 and 2022. However, researchers have raised concerns about data manipulation by some states, suggesting the actual figures could be even higher. These statistics underscore that suicides are symptoms rather than the entirety of the crisis.

Beyond credit: Addressing structural failures

A holistic approach to the agrarian crisis must go beyond credit provision and loan waivers. While access to institutional credit remains important, the crisis has deep structural roots including uneven access to subsidies, skewed land ownership patterns, and inadequate market infrastructure.

The transition from traditional support systems to purely commercial relations has particularly harmed small and marginal farmers. Higher production costs, manipulation by middlemen, expensive loans with high interest rates, and aggressive loan recovery programmes all contribute to escalating debt traps. Farmers need not just credit access but comprehensive support including improved irrigation, reliable input supply chains, stable markets, and effective insurance mechanisms.

Community-managed sustainable agriculture targeting marginal and small farmers in dry, drought-prone areas offers one promising path forward. Simultaneously, strengthening institutional support structures to organize farmers and address their collective issues remains essential. The goal must be making agriculture economically viable while ensuring food sovereignty and protecting the livelihoods of those who feed the nation.

What do you think? Given that the agrarian crisis affects both prosperous and backward regions through different mechanisms, can a single national policy effectively address such diverse manifestations of distress? How might Gandhi’s emphasis on village self-sufficiency and cooperative models offer alternatives to the current crisis-prone agricultural system?

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References
  1. https://www.pib.gov.in/newsite/printrelease.aspx?relid=113796
  2. https://ras.org.in/index.php?Article=situation_assessment_survey_of_agricultural_households_2019_a_statistical_note
  3. https://www.downtoearth.org.in/news/more-than-half–farmhouseholds-in-india-are-in-debt-nsso-report-47924
  4. https://www.niti.gov.in/sites/default/files/2023-08/11th_vol1.pdf
  5. https://www.epw.in/engage/article/agrarian-distress-india-short-reading-list
  6. https://www.researchgate.net/publication/379050787_Agrarian_Distress_in_Indian_Agriculture_Its_Challenges_Paradoxes_and_Management
  7. https://www.isec.ac.in/wp-content/uploads/2023/07/WP-488-Ance-Varghese-Final.pdf
  8. http://www.igidr.ac.in/pdf/publication/WP-2019-017.pdf
  9. https://www.iassite.com/eleventh-five-year-plan-upsc/
  10. https://testbook.com/question-answer/inclusive-growth-as-enunciated-in-the-eleventh-fiv–6080345676d4833dffae06ff
  11. https://www.theindiaforum.in/article/spike-farmer-suicides-punjab
  12. https://www.epw.in/journal/2022/25/commentary/farmer-suicides-punjab
  13. https://pmc.ncbi.nlm.nih.gov/articles/PMC8734467/
  14. https://en.wikipedia.org/wiki/Farmers'_suicides_in_India
  15. https://www.joghr.org/article/22236-suicide-in-rural-punjab-india-implications-for-ensuring-farmer-rights

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Gandhi's Economic Thought

1 Basics of Modern Economics

  1. Economic Thought before Economics
  2. Classical Economics
  3. Basics of Modern Economics

2 Critique of Modern Economics

  1. Critiques of economics discipline
  2. Critiques on British Economic Policy
  3. Gandhiโ€™s Critique of Modern Economics

3 Indigenous and External Influences

  1. Indigenous Influences (Ethical and Spiritual)
  2. Indigenous Influences (Persons)
  3. External Influences

4 Encounter with Colonialism and Poverty

  1. Colonialism (South Africa)
  2. Colonialism (India)
  3. Understanding Poverty

5 Bread Labour

  1. Ruskin on Work and Bread Labour
  2. Impact of Leo Tolstoy
  3. Manual Labour
  4. Intellectual Labour
  5. Motivation for Work
  6. Components of Labour
  7. Shadow Work and Subsistence Works
  8. Value-in-Use and Value-in-Exchange

6 Self-reliance and Self โ€“sufficiency

  1. Swadeshi, Swadharma, Swabhava
  2. Not against Foreign Trade
  3. Principle of Neighbourhood
  4. Self-reliance: A Moral Imperative
  5. Economics of Khadi
  6. Essence of Swadeshi
  7. Swadeshi: Some Misunderstandings
  8. Contemporary Relevance

7 Trusteeship

  1. Trusteeship – Roots in Indian Cultural Heritage
  2. Kinds of Property
  3. Spirit of Japanese Nobles (Samurai)
  4. State Regulated Trusteeship
  5. Trusteeship Formula
  6. Criticism

8 Preferences, Utilities and Wants

  1. Maximum Satisfaction from Limited Resources
  2. The Affluent Society
  3. Limitations of Human Wants
  4. Doctrine of Non-possession
  5. Criticism

9 Machinery and Industrialisation

  1. Gandhiโ€™s Concept of Machine
  2. Technique of Production: Man vs. Machine
  3. Industrialisation
  4. Gandhiโ€™s views on Industrialisation
  5. Small Industries in Industrialisation process in India

10 Economics of Non-Violence

  1. Meaning of Non-violence
  2. Sources of Violence in Economic Order
  3. Preparing for Nonviolent Direct Action and Economy
  4. Basis of Non-violent Economic Order
  5. Satyagraha-Technique of Non-violent Direct Action
  6. The Non-violent State

11 Khadi and Village Industries

  1. Industrial Civilisation
  2. Why Village Industries?
  3. Swadeshi, Sarvodaya and Constructive Programme
  4. Cottage Industries
  5. Spinning-Wheel (Handlooms and Weaving)
  6. Khadi/Khaddar Economics
  7. Other Village Industries

12 Gandhian Economists

  1. Principles of Gandhian Economics
  2. J.C.Kumarappa
  3. E F Schumacher
  4. J K Mehta
  5. Shriman Narayan

13 Decentralisation

  1. Decentralisation โ€“ Meaning and Dimensions
  2. Evils of Centralisation
  3. Advantages of Decentralisation
  4. Structure of Decentralisation- Gandhian approach
  5. Requirements for the Success of Decentralisation
  6. Decentralisation in India โ€“ Present Status

14 Agrarian Economy and Cooperatives

  1. Recent Global Development Scenario
  2. Agrarian Structure in India
  3. Growth Performance of Agriculture
  4. Technology
  5. Factors responsible for poor performance
  6. Indebtedness, Credit Markets and Institutions
  7. Challenges before Agriculture Sector
  8. Farmersโ€™ Suicides
  9. Question of Food Self-sufficiency, Security and Sovereignty
  10. Cooperatives in India
  11. Basic Elements of Co-operatives in India

15 Sustainable Economy and Social Justice

  1. Sustainable Economy โ€“ Its Significance
  2. Social Justice โ€“ Its Necessity
  3. India โ€“ Past Profile
  4. Measures for Social Justice and Sustainable Economy
  5. Social Justice in the Indian Economy
  6. Future perspectives

16 Paradoxes of Development and Gandhian Alternatives

  1. The Dominant Paradigm of Development
  2. Promises of Development
  3. Discontents with Dominant Paradigm and Revisions
  4. Deficiencies of the Dominant Paradigm of Development
  5. Paradoxes of the Modern Paradigm of Development
  6. Gandhian Alternative