Over 600 deaths, at least Rs 5,000-cr loss: The cost of farm protests

With over 600 lives lost and thousands of crores of rupees of economic loss for exchequer, the cost of farm protests has been very high

farmers protest — Members of Bharatiya Kisan Union block the railway tracks during farmers' Bharat Bandh strike, at Dhablaan village near Patiala (File photo: PTI)

1 min read Last Updated : Nov 20 2021 | 1:10 AM IST

On Friday, Prime Minister Narendra Modi announced that his government would repeal the three farm laws, which had put the government at loggerheads with farmers.

The announcement is expected to end the protests—farmers have been protesting for nearly a year now. However, the costs of the farm stir have been high.

As per an analysis by Punjabi University scholars, until October 26, 2021, nearly 600 lives had been lost. The study of 460 farmers who lost their lives during the stir indicates that most farmers who lost their lives were either small farmers or landless labourers. The study further suggests that the average age of those who lost their lives was 57. The average landholding of the deceased (including landless) was 2.26 acres or 0.91 hectares. The average area per operational holding in the state as per the MOSPI report was 1.48 hectares.

In terms of economic cost, the deaths alone would amount to a loss of Rs 187 crore in earnings. Given life expectancy in Punjab is 71.6 years, and the average age of the deceased was 56, each person had 15 years of life remaining. As per MOSPI data, small and marginal farmers' average earning per month was Rs 17,375 per month.

The loss to the exchequer has been much higher. Railways alone had reported a loss of Rs 2,400 crore due to farmer protests last year. As per data submitted to the Parliament, NHAI had incurred losses worth Rs 815 crore until March 16. Given the protests have continued for another eight months, the estimated loss may be higher than Rs 2,445 crore for NHAI. In July, NHAI had declared the farmer strike on the Delhi-Haryana border an indirect political force majeure event.

While it is difficult to assess the economic loss, various estimates are available from different industry associations until December. As per Assocham, the daily loss at the height of the protests last year was Rs 3,000-Rs 3,500 crore. PhD Chamber of Commerce calculations had placed the loss during Q3 of FY2020-21 at Rs 777 crore daily.

Recent estimates of disruption caused by farm stir are not available.