The Hindu Business Line : <I>Ploughed out </I>

A. M. Chacko, an avid farmer in Kerala's mid-Travancore for over 15 years, has decided to rest his plough. It was not an easy decision for him to make, as agriculture was a passion for him, having spent all his time and effort on it after retiring as a senior officer from the Kerala government in the late 1980s.

He became one of the leading farmers in the region, and something of a rebel by shunning the route to easy returns by saying no to rubber cultivation.

What finally clinched the argument was a stock taking of sorts by his wife, also a retired government officer, on how much money he had spent in 2005 on retaining his status as a farmer and what he got in return for his efforts.

The tale that unfolded was quite bleak insomuch as the fiscal prudence side was concerned. It transpired that he had spent over Rs 90,000 towards hiring farm labour and another Rs 15,000 on manure, fertilisers and so on. His total revenue from selling his produce was only Rs 45,000.

In other words, he had incurred a loss of Rs 60,000. While Mrs Chacko was willing to underwrite Rs 20,000 towards in-house consumption of the tubers, bananas and green vegetables grown in their three-and-a-half-acre farm, it still left Rs 40,000 uncovered.

"There are many factors that work against the interests of small and marginal farmers in Kerala who do not take to rubber cultivation for financial security. Whenever I take my produce to the local market, the price offered is never more than half its selling price.

"On the other hand, farm labour costs Rs 150 a day, almost double that in the neighbouring States. It makes better business sense not to grow farm produce anymore in Kerala but buy the same from Coimbatore and other places," says Mr Chacko.

Clearly, Mr Chacko was aware that he never made any profit from his farming ventures all these years, but quite satisfied to bankroll the shortfall from his pension.

But the gap widened beyond acceptable limits in recent years and hence the decision to quit farming. Not so easy for many farmers who may have to borrow regularly and end up in debt traps that they rarely manage to come out of.

It may be the plight of the farming community in Kerala to lives beyond its means, but others may be doing so quite willingly.

According to a recent study, a good many families in the State live well beyond their means, borrowing money at high rates to keep up with the `Joneses'.

A significant portion of the borrowed money, the report says, goes towards funding ostentatious marriages or footing the bill in pricey hospitals.

Add to this the pressure to splurge on palatial houses, the latest vehicles and other consumables, it can be quite a lethal combination. Those who spend their lifetime trying to repay these debt would willingly agree.

Vinod Mathew

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