THE ECONOMICS OF FARMERS' SUICIDE IN DEVELOPING COUNTRIES

In the past years, farmers suicide in India has become a major problem and denotes a social ill that could lead to a national tragedy. This article seeks to explain the phenomenon of suicide among Indian farmers. The article focuses only on economic factors to explain suicides. We have constructed a theoretical model, based on the assumptions which show that over-indebtedness, price of inputs, and uncertainty of the return on the technology used by the farmers can cause suicide. Therefore, we assume that over-indebtedness has a negative impact on the livelihood of Indian farmers and on their capacity to repay the debt. Consequently, an assumption is made between suicide and the decrease of utility on one side and suicide and an increase in prices for inputs on the other side. Ultimately, suicide becomes a rational and optimal choice that improves well-being in the sense that farmers are relieved from all burdens of material life.