Farm Debt Mediation for India


Farm Debt Mediation is a hope for Indian farmers in distress, whereas the jargon of Farm Debt Waiver is the prevalent custom. Farm Debt write–off in the banking and finance segment are so common, and the terminology frequently find place in the election manifestos. This article is exploring the possibility of Farm Debt Mediation for India.


Farm Debt Mediation enables the Farmers to mediate their disputes with creditors, and the mediation process provides the farmers an opportunity to explain what is or has wedged on their capacity to repay debts and to seek mediation facilities for an outcome which enables and empowers farmers to face the creditor for a structured negotiated deal and to avoid the risk of legal proceedings.

Farm Debt Crisis and suicides

India being an agrarian nation with 70% of the population depending on the agriculture, farm debt crisis happen so regularly, due to the climate change, policy change, input cost surge, monsoon failure and mental health issues. Over 12000 suicides were reported due to the same in every year since 2013. Of the total suicides, 10% are from farming community. NCRB data points out that 2474 suicides out of 3000 farmer’s suicides in 2015 are the victims of unpaid loans from local Banks in India.

Farm Debt Waiver

Farm Debt Waiver schemes do benefit the farmers, but it often ends with severe issues including selection of beneficiaries and impact on creditors. Farm Debt Waiver schemes are self-defeating, as it destroys the credibility of farmers and their repayment history. In the end, such schemes, affected the flow of credit to farming sector, and demolished the credit market in the farm segment of India.


This article is originally published on World Mediation Organization's Website 

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