abstract

Farmer suicides in Maharashtra represent a profound socio-economic crisis, with the state accounting for nearly half of India's total farmer suicides per recent National Crime Records Bureau (NCRB) data (NCRB 2023). Between 2013 and 2018, over 15,000 such deaths occurred, 83.74% concentrated in Vidarbha and Marathwada (IJSRSET). Empirical analyses identify indebtedness, crop failure, and low returns as key drivers, exacerbated by environmental shocks and market volatility (PMC 18; Oxford UP). Critically underexplored is how household debt composition institutional (banks, cooperatives) versus informal (moneylenders, relatives) mediates crop failure's impact on suicide rates. In Vidarbha, 51.5% of suicide victims held debts from both sources, and 47% from formal alone ("Indebtedness of Farmer Suicide Victims"). Informal credit imposes high interest and coercive recovery, undermining institutional credit's protective role (PMC; ISEC 21; Findev Gateway). Nationally, formal sources supply 58% of rural household credit, informal 42%, with Maharashtra showing persistent informal reliance despite banking outreach (ISEC; Findev Gateway).

This study examines, at the district level, the extent to which institutional versus informal debt mediates crop failure's effect on farmer suicide rates in Maharashtra's rural districts, focusing on Vidarbha and Marathwada. Using NCRB suicide data, state crop loss statistics, and rural credit surveys, we construct district-level indicators of debt composition to quantify mediation via regression analysis. Findings reveal that districts with higher informal debt shares exhibit amplified suicide rates post-crop failure, informing targeted policies for credit reform, insurance, and relief to bolster resilience.