Augendra Bhukuth,

ITSMI School of Management

Paris, France

E-mail: augendra@gmail.com

The economics of farmers’ suicide in developing countries

Damien Bazin,

Côte d’Azur Université

CNRS, GREDEG

Nice, France

E-mail: damien.bazin@unice.fr

Naceur Khraief,

Tunis Business School

Université de Tunis

Tunis, Tunisia

E-mail: naceur.khraief@tunis-business-school.tn

Bernard Terrany,

Ipag Business School

Paris, France

E-mail: b.terrany@ipag.fr

Abstract. 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.

Received: August, 2018

1st Revision: December, 2018

Accepted: January, 2019

DOI: 10.14254/2071-789X.2019/12-1/8

JEL Classification: D62, D63, Q12, Q14

Keywords: farmers suicide, poverty, indebtedness, rational choice, GMO technology