Can loan waivers bring down farmer suicides?

Farmer suicides increased 7% to 17,368 in 2009, from the 2008 count of 16,196

There were more farmer suicides after the Congress-led United Progressive Alliance (UPA) waived Rs 60,000 crore in farm loans in 2008, minister of state for agriculture Purushottam Rupala claimed in the Rajya Sabha on July 25.

National Crime Records Bureau (NCRB) data on farmer suicides second Rupala. Farmer suicides increased seven per cent to 17,368 in 2009, from the 2008 count of 16,196.

NCRB started publishing detailed data on farmer suicides, including reasons and land holding status of farmers or cultivators who committed suicides, from 2015. The UPA-I government announced a Rs 60,000-crore debt waive while presenting the Budget for 2008-09. It was intended to help 30 million small and marginal farmers and 10 million other farmers.

While loans of small and marginal farmers, disbursed till March 31, 2007, were to be waived, other farmers were to be given a 25 per cent rebate on dues, if they paid the remaining 75 per cent.

The Uttar Pradesh government has announced a Rs 32,000-crore package to write-off farm loans, subject to an upper limit of Rs 100,000. Other state governments followed in quick succession. However, the data says writing off debts is not the answer.

Compiled by Aditi Phadnis; Data: NCRB & IndiaSpend