Abstract:
Poor returns to cultivation and absence of non-farm opportunities are indicative of the larger
socio-economic malaise in rural India. This is accentuated by the multiple risks that the
farmer faces – yield, price, input, technology and credit among others. The increasing
incidence of farmers’ suicides is symptomatic of a larger crisis, which is much more
widespread. Risk mitigation strategies should go beyond credit. Long term strategies requires
more stable income from agriculture, and more importantly, from non-farm sources. Private
credit and input markets need to be regulated. A challenge for the technological and
financial gurus is to provide innovative products that reduce costs while increasing returns.
The institutional vacuum of organising farmers needs to be addressed through a federation of
self-help groups (SHGs) or alternative structures.
