Cause-consequence analysis of indebtedness among farmers in Pulpally panchayat of Wayanad district

Abstract

The agrarian sector in Kerala is facing a crisis unparalleled in its history. Fall in prices, decreasing production and productivity of crops, diminishing soil fertility and irrigation water availability, climatic aberrations, pest and disease attack of crops etc. have resulted in a manifold decline in the financial viability of agriculture. This has in turn led to a steep increase in indebtedness of farmers and increasing number of farmer’s suicides. In this background, the present investigation has been designed to attempt a cause- consequence analysis of indebtedness of farmers. The study was conducted in Pulpally panchayat of Wayanad district where maximum number of farmer’s suicides due to indebtedness were reported. Sixty respondents were randomly selected for the study. A simple severity index was used to rank the causes and consequences of indebtedness and a usefulness index was used to measure the perception of farmers on governmental interventions in resolving the crisis. Majority of farmers belong to medium category as far as socio economic variables like exposure to mass media, extension participation, extension contact, economic motivation, risk orientation, credit orientation, progressiveness, perception of profitability and level of aspiration is concerned. Agriculture was the main source of income for more than 86 per cent of farmers. Nearly 84 per cent of respondents were indebted for less than two lakh rupees. The average amount of loan across the panchayat of Pulpally is Rs. 96,850. The average amount due per acre for entire sample area was Rs. 64,518. The total number of loans taken was 1.63 times higher than the number of respondents. More than 65 per cent of respondents took credit from institutional sources. For respondents the average number of years of being a creditor and defaulter is 6.91 years and 3.11 years respectively. More than 48 per cent respondents used agricultural loan for non agricultural purposes. The factors leading to indebtedness were delineated and arranged in descending order of severity. They are low market price of produce, disease/pest of support, decline in agricultural income, disease of crop, absence of other sources of income, decrease in produce demand, crop failure due to climatic variations, high rate of interest, absence of value addition, misutilization of loans, pest attack of crop, deficiency of irrigation water, decrease in soil fertility, inefficient marketing, low export price. A similar analysis was done on consequences of indebtedness. The descending order of consequences is changes in lifestyle, hunt for alternate jobs, deforestation in holdings, reduction in money on social purposes, selling land, reduction in money spent on recreation, depression, decrease in health consciousness, aggravation of drinking habit, sale of vehicles, adverse impact on education, social isolation, tensions in family, impact on marriages and house construction and maintenance affected. The usefulness of governmental interventions was measured on the basis of perception of farmers and was arranged in decreasing order of importance. They are compensation cash for pepper, interest waiver, Debt Relief Commission, saplings and fertilizers for pepper farmers and NREGS. It was also found that majority of farmers had high levels of stress.