Agriculture is one of the strong holds of the Indian Economy which provides the principal means of livelihood for over 60% of India’s population. As being stated by the economic data of financial year 2009-2010, agriculture accounts for 14.6 per cent of the country's gross domestic product (GDP) and 10.23 per cent (provisional) of the total exports. The agriculture sector of India has occupied almost 43 percent of India's geographical area. Agriculture remains the largest economic sector in the country despite a steady decline in its share to the gross domestic product (GDP).
But recently, the low growth rates under the sector and ascend of an agrarian crisis in several parts of the country had posed a threat to the national food security as well as the economic well being of the country. In 1947 the share of Agriculture in total GDP was 50%. Gradually it declined and has now come down to about 20%. The Indian agriculture is in a state of crisis, the reasons for which are manifold attributing it to the nature of the economic strategy, various technological, ecological and weather related issues.
Agrarian crisis has become so critical in the recent years that farmers in certain parts of the country have directed themselves to committing suicide. The worst position of the farmers in the country is in Vidarbha region. Vidarbha region comprises of 11 districts of Maharashtra which includes Buldana, Washim, Akola, Yavatmal, Chandrapur,Gadchiroli, Gondiya,Bhandara, Nagpur, Wardha and Amarawati. These districts are prone drought prone and are characterized by consequent crop losses.
Vidarbha region is characterized by very poorly drained soil depleted of fertility due to mono-culture which has lead to repeated crop failures.
The Radhakrishna Committee Report based on the “Report of the Expert Group on agricultural indebtness” submitted to the Ministry of Finance, Govt. of India reveals that stagnation in agriculture, marketing risks, collapse in extension system, growing institutional vacuum, and lack of livelihood opportunities besides agricultural indebtedness are the primary caused for farmer suicides in Vidarbha.
The report ‘’ Regional Disparities and Rural Distress in Maharashtra with particular reference to Vidarbha’’ submitted to the Planning Commission, Govt. of India by the fact finding team on Vidarbha reveal that there was a complete breakdown of coping mechanisms in rain-fed areas where substantial loans were taken from informal sources at high interest rates in a scenario were returns were not assured due to vagaries of both monsoons as well as markets.