West Bengal: Sharecropper Dies by Suicide due to Microfinance Debt, Many Affected by Loans

Kolkata: Microfinance loan burden is leading more and more farmers to suicide in West Bengal. On Sunday night, Bamdeb Malik (35), a sharecropper, breathed his last after allegedly consuming poison in East Burdwan district's Beldanga village. He was burdened with an unmanageable debt of microfinance after a lean harvest.

Being a poor marginal farmer, he had taken a loan of Rs 50,000 from microfinance institutions (Bandhan Bank) and Rs 40,000 from local money lenders.

Having no land of his own, he had sown Aman paddy in four bigha land on a contract basis. Every year, he used to till the land as a sharecropper. However, this year, the Aman cultivation had taken a hit due to lean harvest, and local microfinance agents were hounding him for being unable to pay the dues. Second, he reaped potatoes in three kathas (1 bigha = 20 katha), which was a no yield.

Local farmers alleged that the reason for such ‘suicides’ lies in the complete destruction of the cooperative movement at the behest of the ruling Trinamool Congress, which is purportedly paving the way for local money lenders and microfinance organisations to operate in the area. Institutionalised credit from government sources is practically absent in this block of Burdwan district.

Most of the loans accrued by the villagers are from Bandhan Bank, and the infamous loan with more than 28% interest rate given to sharecroppers is termed "wife mortgage loan (Bou bandhaki loan)" by the farmers themselves.

After tilling the land with a high interest rate, the farmers faced destructive weather and mites (shoshok poka) eating away their produce this year. Because of this, the farmers were unable to pay their debt dues.

The desperation that led Malik to end his life is also being felt by marginal farmers like Nakur Malik, Achin Modak, Sunil Ghosh, and others. All of them are now standing on the brink of economic devastation.

Many of them are now thinking of leaving farming as a profession and willing to work as migratory labour outside the state. All of them alleged in unison that there had been a mercurial loss in paddy production from last year.

In the Bhatar police station area, where the land is conducive to bigha wise yield of 15 to 16 quintals of rice, this year's harvest has been only eight to nine quintals per bigha and production cost has risen many a time.

However, no government help has been received in the village from any sources and local panchayats are well informed about the conditions, the farmers told Newsclick.

Most of the Beldanga village residents depend on farming as a source of income, and this condition has led to a déjà vu situation in the whole village.

On the condition of anonymity, a farmer told Newsclick that the triple-axis of mites, microfinance, and ruling party hooligans were allegedly exploiting the villagers to the core.

Earlier, the debt-laden villagers of Begot in Burdwan had written to Chief Minister Mamata Banerjee requesting her to save them from microfinance debt. But their plea is yet to resonate in the corridors of power in the state.

Farmers say that the ‘torture’ meted out to them by the microfinance companies leads them to suicide or forces them to leave the villages. In Putunda village of Burdwan, there is a similar condition, and the farmers there had complained to the state Human Rights Commission about the same.

The state Human Rights Commission has also been informed about the role of the bouncers of microfinance organisations and workers of the ruling party in the area.

In many cases, the poor, marginalised farmers have alleged that microfinance organisations have made the farmers sign white paper bonds[a1] . Even after making payments regularly, many alleged they were suffering even if they have faltered on a single instalment to repay their loans during the lockdown period.