Hello friends, I hope you all are enjoying your busy life and taken out some time from it to read my "first", yeah it's first Blog!. Mahatma Gandhi once said that the real progress of
India did not mean simply the growth and expansion of industrial urban centres but mainly the development of the villages.
As we know the problem regarding the farmers suicide in India attains a height during elections. It's always a point of debate in India. In India yearly an average of over 1,40,000 people commit suicide. Farmers of India, accounting for over 60% of country's population is expected to account for at least 84,000 suicides annually. As of 2015-16 , 47% of people are engaged in agriculture as their main occupation which is huge! Being a serious issue the government of India do take some serious steps regarding it but what are the reasons that the government is still not been able to tackle it?
First and the foremost reason is the loan taken by the farmers from "informal sector". The loan obtained from money lenders, relatives and friends falls under informal sector. We usually see that the government declares to waive the loan of the farmers but still we notice the cases of farmers suicide due to burden of loans. The reason is that the most of the farmers borrow money from the informal sectors and not the formal sectors (banks and cooperatives). So, what about these informal sectors? The interest rates of the informal sector credit are so high but still the farmers tend to borrow from informal sector as the formal sector credit requires the "collateral". Due to this vast proportion of poor rural households were automatically out of the credit network from formal sector. We often blame government for not waiving the loans of the farmers but what about these informal sectors? There are certain measures which government is undertaking and some measures which I think should be done. We will discuss it in the next blog if you think it was quite impressive. Have a great day ahead friends.
