Farmers committing suicide due to rising debts, low rainfall:Economists say govt’s steps not enough, give them ₹1 lakh crore stimulus package

The Union Agriculture Ministry has declared drought-like conditions across five major states following a 12.3% national monsoon deficit. Crop loss and rising debt have increased stress among small farmers, prompting call from Food Policy Analyst, Devinder Sharma for a ₹1 lakh crore central stimulus package. Impact of low rainfall on India’s agriculture: Deficient monsoon rainfall has affected over 6.11 lakh hectares of agricultural land during the kharif season. The Union Ministry of Agriculture and Farmers Welfare confirmed drought conditions in five states, lowering the national foodgrain production target for 2026–27 to 373.93 million tonnes from 376.56 million tonnes in 2025–26. Persistent dry spells, reduced soil moisture, and rising debt levels have led to reported instances of farmer distress and suicides across rainfed agricultural belts. The 12.3% monsoon shortfall led to a 1% decline in overall kharif sowing area. Paddy acreage fell by 16.32 lakh hectares, followed by reductions in cotton and maize cultivation. Which 5 states govt declared drought-hit? The five states declared drought-hit are major contributors to India’s agricultural output: Maharashtra: Largest producer of sugarcane, pulses (tur, gram), and soybean. Over 85% of talukas (305 out of 358) have been declared drought-affected. Karnataka: Primary producer of coarse cereals (maize, ragi), sunflower, and sugarcane. Tamil Nadu: Major producer of paddy, pulses, and groundnut in southern India. Telangana: Key hub for cotton, paddy, and red gram cultivation. Andhra Pradesh: Major producer of groundnut, chili, maize, and rice. Impact on the Upcoming Rabi Season The rabi season runs from October to March, with sowing beginning after the monsoon retreat. Key rabi crops include wheat, mustard, barley, gram (chana), and lentils. Reservoir levels across central and southern regions remain below historical averages, threatening water availability for early rabi irrigation. The Ministry of Agriculture warned that rainfed areas will face extended moisture stress during rabi sowing. Understanding the El Nino Factor: El Nino is an abnormal warming of surface waters in the central and eastern Pacific Ocean. It alters global weather patterns and weakens the Indian summer monsoon, causing lower rainfall and above-average temperatures. Higher soil moisture evaporation during El Nino conditions increases irrigation costs and reduces crop yields per hectare. Measures Announced by State Governments: State governments in affected regions have initiated interim relief measures: Input Subsidies: Direct financial transfers to farmers suffering over 33% crop loss. Loan Restructuring: Directions to state cooperative banks to convert short-term agricultural loans into medium-term loans. Power Subsidies: Provision of 7 to 9 hours of uninterrupted power supply for farm tubewells. Water Tanker Deployment: Emergency water supply for drinking and livestock in severe distress zones. Increase MGNREGA days to 150: Athreya Prof. Venkatesh Athreya, former faculty at Bharathidasan University, noted that state-level measures are insufficient to stabilize the farm sector against global and domestic pressures. Prof. Athreya highlighted three critical structural challenges: Rising Input Costs and Inflation: Fertilizer prices have risen due to global trade tariffs, supply line bottlenecks, and rupee depreciation against the US dollar. Energy costs and interest rate hikes by central banks have raised production and credit costs, accelerating food inflation. Yield Loss and MSP Procurement: El Nino conditions threaten to lower crop yields compared to the previous year. Government agencies must expand food grain procurement at Minimum Support Prices (MSP) set at 1.5 times the comprehensive cost of cultivation ($C_2$), as recommended by the National Commission on Farmers (Swaminathan Commission). An Adequate Stimulus Package: A comprehensive central stimulus package must include direct relief for small and marginal farmers, as well as landless rural agricultural workers. The Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA) should be expanded from 100 days to 150 days of guaranteed employment per registered household annually, paid at updated state minimum wage rates.