Chronic indebtedness is the primary driver of farmer suicides in India. High-interest loans from private lenders, stagnant farm incomes, and rising input costs trap approximately 50% of agricultural households in debt burdens exceeding ₹74,000 on average.

CURRENT STATE

This indebtedness causes severe financial distress, contributing to over 11,000 annual farmer suicides linked to unpaid debts. Rising input costs outpace Minimum Support Prices, with farmers often recovering less than half their investment. Erratic climate and market price fluctuations exacerbate income instability, especially in rainfed areas where 52% of land is dependent on monsoons.

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