Ruined Rural Economy – Debt Death Trap Part – 11

Ruined Rural Economy – Debt Death Trap Part – 11

“Had Indian leaders listened to Mahatma’s inner Voice,

than Indian farmers would have never committed Suicide?”

My dearest Ezine readers encouraged with your response, today I am analyzing about the bad effects of MM-PC banks loan debt trap scheme which has already sent over 3000 farmers to gallows. The unfortunate farmers have never realized that the dreamy creamy Vote drawing layers of Bank loans were nothing more than the election gimmicks.

Poor Farmers were never briefed about the hind side long drawn implications of mortgaging their landed properties by the bank officials before sanctioning and releasing loans. of Government of India when could not repay the high loan returns willingly embraced death thus saving their families from the humiliations of world dirty eyes of government hawks.

The borrowed Debt Loan Economy (DLE) concept of United State of America introduced amongst poor farmers, peasantry and students in India by the MM-PC-MS trio in all spheres of life has totally ruined Indian people’s happy family life and way of living. In one of my interactive survey with over 40 students, who have taken loans ranging from rupees 30,000/ to over rupees 1, 75,000/ to meet the unwanted high cost of higher studies, have revealed very astonishing founding.

One; eight students nearly 25% after completing studies have developed primary hyper tension in the worry of as to how to repay loan, two 25 students nearly 62.5% have revealed totally insecure and unbalanced life worries of generating repayment in ever insecure job market, three two students 5% could not pay the loan, therefore, their parents poor farmer who mortgaged their land were running from post to pillar to save auction, four 5 students 12.5% were more or less comfortable with loan repayments but these students were from sound back grounds.

The DLE is has brought so much worries to every section of society that the average life span of these people has reduced by nearly five to ten years.

Why should a government run on DLE at all while all the resources are for her citizens? Why should citizens pay for higher studies while Government fails in fulfilling basic obligatory duty of providing education? What additional a professor teaches to of Indian Institute of Technology (IIT) and Indian Institute of Management (IIM) is teaching so that students are paying over rupees 80,000 to rupees 1,25,000/ The entire network of education, now days, has been setup on unprofessional ethics based on materialistic approach of the West.

The mushrooming education institutions by every Tom, Dickens and Harry at every nooks and corners of the country are booming like profit making industries. The materialistic oriented education philosophy of now present government only speak the depth with which Western values have embedded in Indian moral and social education system of Rishies (Sages) and Saints. At no point of time I feel that what situation present government has created in the country is unwarranted if we manage our natural and agro resource well.

Most of the readers would agree with me that Indian farmers are capable to feed half of the Asian continent provided they are offered enough resources. Why should government import 30 Lakhs tons of wheat near the harvesting season speaks of short sighted vision of our leadership? I find no motive for such vague decision. Any how Indian farmers are once again in the hands of plundering business community. The amount of losses every farmer is suffering due to late harvesting of sugarcanes one can not imagine?

Daily truck, tractors and hundred thousands of bullock driven carts laded with sugarcane are stagnating around sugarcane weighing centers at the mercy of government clerks. The poor small farmers get up after midnight, load their trolleys or carts and rush towards weighing centers to form line before dawn to keep waiting for clerks to arrive after 9AM. This is the agony of Indian farmer and when clerk would weigh, he would weigh minimum two to five quintals less.

He works harder but gets lesser and cheated at every place by corrupt official systems. After interacting with one such clerk whose meager pay was just rupees 3000 to 6000 per month slab, he had accumulated property worth over rupees five million. The same story is repeated with poor farmer at the end of every crop harvesting season.

Why a farmer should takes loan? I am just not convinced with this DLE concept of trio. It is just to plead their Western economists various governments are blatantly involved in drafting vague short sighted and untenable economic policies. Why should cost of fertilizer be raised that a 50 kg bag of Urea costs over rupees 300? Why should seed be costing over rupees 1000 to 10, 000 per kg?

Why and why? I find no reasons of raising prices so much. Asian continent’s crop cycle of small farmers is barely enough to just meet the minimum requirements of his small family norms. Why should diesel be costing over rupees forty a liter while the milk is costing less than rupees 10 to farmers. The real beneficiaries of raised milk cost are not the poor farmers but the middlemen who once again are able to steal the overall benefit.

I suggest that governments rather than relying on DLE should follow my Direct Crop Rotating Fund (DCRF) economic concept. This pattern of assistance can be easily created and made available without putting a farmer under the mental stress of loans.

In this concept of economy, a corpus of over rupees fifty to seventy five million can be raised at center and rupees 40 to 50 million at each state levels to regulate finances directly through block and village bodies. There is a need to revamp local village organizations which should include an accountant and manager to manage finances.

After analyzing the various factors, I recommend that there is a need to modernize villages if we have to enter into Dynamic Revolving Economy Cycle (DREC) of future. I suggest that:

· One; each government should create a separate DCRF corpus at village, tehsil, district and state/commune levels

· Two; form, alfa village Crop Monitoring Committee (CMC) for all farmers and bravo village Finance Management Committee (FMC). The former should be purely tasked to prepare a particular village crop production, quality and marketing reports; and later to keep all records, dealings and management of DCRF. This corpus should be augmented yearly from surplus sugarcane production supply centers of those areas.

However, it is a matter of disgrace to record that most of the government’s managed sugar mills are generally running under losses; and all the recently set up private mills in the near vicinities are flourishing. It can be easily implemented without risking anybody’s life.

· Three; follow and create infrastructures on the principles of Move Market to Farmers (MMF); and Not the Farmers to the Market (NFM). This methodology of setting markets would solve over 90% problems of farmer’s transpirations, shifting, loading/unloading, double weighing, transportation losses and wear and tear of machineries or animal. In addition over thousands of working man hours would be saved.

· Four; Create farmer friendly number of collection and weighing points rather than setting up one or two in larger areas.

· Five; once again move seeds fertilizers and pesticides closer to villages and not the cities. It would save time, money and man hours for which farmers are craving.

· Six; if possible set up finished product industries on the principle of Kalpna’s Environment Economic Loop (KEEL) to ensure making of finish products benefit in local area.

Why I do not recommend borrowed DLE concept to be implemented not only in India but also in Asia as well is due to:

· One; Unclear bank loan policies and high rate of interest have cause fear amongst farmers. Sometimes, I feel that the banks have drafted loan policies in such a manner that the loan amount rather providing help becomes cause of suicide. Farmers generally feel that somewhere banks are cheating them. Many poor farmers have gone under severe financial crisis even after taking as small a sum as rupees 3000 loans;

· Two; lack of understanding between poor illiterate farmers and over educated ambitious and cheat employees;

· Three; always receiving less than promised loan. Nearly one tenth to a quarter part invested in greasing palms of official and guarantors;

· Four; High cost of seeds, fertilizers, pesticides, irrigations and harvesting reduced repaying capacity of farmers;

· Five; Natural onslaught of untimely rains, hails or storms cause moderate to severe damage to standing or nearly harvested crops, thus, rendering farmers helpless;

· Six; low rates fixation near harvesting seasons by government;

· Seven, the most important and considerate factor is the grouping of black marketers, government officials and local mafias in fixing the rates of crop near harvesting season and continue to maintain for shorter periods;

· Eights; three to six months delayed payment by government and private businessmen;

· Ninth; worries of recycling over 40% of earning for next crop and

· Tenth; the most important factor is nexus between all procuring agencies in forcing the farmers to sell their produces at low cost thus illegally indulging in Monopolized Restrictive Trade Practices (MRTP). I have visited over 2000 markets during wheat and paddy crop seasons; and always found that this lobby is well entrenched in and around government procurement centers, thus ensuring that government officials always offer low grade to bargain with private businessmen to large number of farmers.

I still feel that had Indian leaders listened to Mahatma’s inner Voice, than our farmers would have never committed Suicide? Despite Mahatma’s stiff opposition to industrialize Rural Areas (RA), the Indian leaders are hell bent in doing so. The pollution of RA environment would cause severe stress on Asian health sector at later stage as well. As it is Asian people are very uncomfortable of taking loans, therefore, they need small catalyst to commit suicide. Though most of the farmers are brave heart but why have they taken extreme steps is the cause of worry?

My endeavors have been to analyze and rewrite the economic script of Agro sector generally in Asia and developing countries but particularly in India. I am also hopeful that my various farming sectors economic conceptual models would benefit people at large.

Though, by and large, I have touched upon various issues but in the following article, I would only concentrate as to how to revive agro farming economy of India? Infact, I would term these efforts as Renaissance of Indian Farming Economy. I would analyze country’s farmers various universal problems and their suggested remedial measures so that farmers could face the challenges of future Dynamic Revolving Economy Cycle (DCRF). Ezine esteems readers’ views are solicited at [email protected]



The term “economy” refers to the system of production, distribution, and consumption of goods and services in a particular region or country. It encompasses various factors, such as the production of goods and services, the allocation of resources, employment levels, income distribution, and overall financial conditions.

Economies can be classified into different types, including market economies, command economies, mixed economies, and traditional economies, each with its own characteristics and mechanisms of operation.

Key elements of an economy include:

  1. Gross Domestic Product (GDP): GDP is a measure of the total value of goods and services produced within a country during a specific period. It is commonly used as an indicator of a country’s economic performance.
  2. Employment and Unemployment: The level of employment and unemployment is crucial in determining the health of an economy. Low unemployment rates indicate a robust labor market and potentially higher consumer spending.
  3. Inflation: Inflation refers to the increase in the general price level of goods and services over time. Moderate inflation is generally considered beneficial for economic growth, while high inflation can erode purchasing power and create economic instability.
  4. Fiscal and Monetary Policy: Governments use fiscal policy (taxation and government spending) and monetary policy (interest rates, money supply) to manage the overall health of the economy, stabilize prices, and promote growth.
  5. Trade and International Relations: Global trade plays a significant role in the economy of many countries, influencing factors such as exports, imports, balance of trade, and foreign exchange rates. International relations and trade agreements can impact economic growth and stability.
  6. Income Distribution: The distribution of income within an economy can impact social equality and economic stability. Disparities in income distribution can affect consumer spending patterns and social cohesion.
  7. Business Cycles: Economies go through cycles of expansion (increased economic activity), contraction (reduced economic activity), and recession (a significant decline in economic activity). Understanding and managing these cycles is crucial for economic policymakers.
  8. Economic Indicators: Various indicators, such as consumer confidence, business investment, housing market activity, and stock market performance, provide insights into the overall state of an economy and its future prospects.

It’s important to note that economic conditions can vary significantly across countries and regions, and the performance of an economy is influenced by numerous factors, including government policies, technological advancements, natural resources, demographics, and global economic trends.

Prepare and write by:

Author: Mohammed A Bazzoun

If you have any more specific questions, feel free to ask in comments.


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