An Economic Analysis of Farmers‘ Suicide in Karnataka: A Case Study on Davangere District.

Mr. Anneshi R.; Dr. N.K. Gowda

Volume : VII, Issue : II, February - 2018

An Economic Analysis of Farmers‘ Suicide in Karnataka: A Case Study on Davangere District.

Mr. Anneshi R. , Dr. N. K. Gowda

Abstract :

Indian peasant is born in debt, lives in debt and dies in debt (During 1929). Today many of the farmers die not in debt but commit suicide due to debt. Indebtedness has long been treated as distress phenomenon. It is indeed so if the debt taken is not used for productive purpose or creation of assets that augment the earning base of the barrowers and instead is used for consumption purposes or marriages and social ceremonies. Debt can also become a distress phenomenon if the borrowers� crop fails due to natural culminant or drought or other unforeseen reasons or if production becomes uneconomic because of high input costs, stagnant technology and lack of remunerative prices which make it impossible for the farmers to repay his loan and interest. Finally, and this is quite common, interest becomes a heavy liability if the loan is taken from non-institutional sources at high rates of interest. The accumulated liability of principal and compound interest can something become crippling and the borrower is forced to mortgage or sell his land losing thereby his only many of livelihood. In some cases, indebtedness and failure to pay can become one of the important causes for formers suicides