Agriculture

The maize debt trap: Why are tribal farmers in this Odisha district caught in a loop of debt?

Depleting soil quality and rising fertiliser costs perpetuate a crushing cycle of debt and marginalisation

 
By Aishwarya Iyer
Published: Monday 24 July 2023

This story is based in one of the most resource rich states of India — Odisha. But this particular district in Odisha is a case study on the increasing marginalisation of vulnerable communities in the country.

Tribal farmers are being crushed under a cycle of debt because they have been growing hybrid maize crops for the last two decades. Maize, being a fertiliser hungry crop, is adding to their cost of production every year.

But with erratic weather and the global climate crisis, production is not what it used to be. As fertiliser costs increase every year farmers borrow money from local moneylenders to meet their farming and daily expenses.

This comes at an interest of three-five per cent and soon a farmer ends up working for his own land as a labourer. They also cannot borrow money from banks because banks require collateral.

This collateral is generally the land they farm on but under the Forest Rights Act, 2006, they need papers to prove that the land belongs to them and does not fall under reserved forests.

These claims, once submitted to the government, take at least two years to process and mostly get rejected for several reasons. So, this cycle of depleting soil quality, crushing debt and further marginalisation of vulnerable communities continues.

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