The political economy of agrarian distress: state policy, debt, and farmer suicides in India

Abstract

This paper examines the political economy of agrarian distress in India, highlighting how economic liberalization, state policies, institutional credit structures, and rising rural indebtedness have shaped the crisis and contributed to farmer suicides from the early 1990s to the present. Using secondary data from official sources including National Sample Survey Office (NSSO) reports, the findings indicate that post-reform policy shifts, along with stagnating farm incomes and rising costs, led to mounting rural debt and severe distress. National Crime Records Bureau (NCRB) data on farmer suicides point to a serious and continuing pattern. Institutional credit shortcomings forced many farmers to rely on high-interest informal loans, aggravating indebtedness, and vulnerability. The analysis underscores that while liberalization contributed to overall economic growth, its benefits largely bypassed small and marginal farmers, leaving structural deficiencies in agrarian support systems unaddressed.