KARNATAKA ECONOMY

NAME: PRATHVI G NAIK

CLASS: MCOM IIIRD SEM
ROLL NO: 18CO1224
TOPIC:

AGRICULTURAL CRISES
Agricultural crises is also known as farm crises. A
Farm Crisis describes of agricultural recession,
low crop prices and low farm incomes.
In this case, a conflict between the new level
of value and prices for agricultural goods and
the old rent relations arises, not to be soon
resolved. During agrarian crises, as prices for
agricultural commodities decline, the usual
source for the payment of rent – a supplemental
profit-disappears.
 Karnataka is a drought-prone region with
large proportion of wastelands, high
outstanding agricultural credit from scheduled
banks, and high density of marginal and small
farmers. Agricultural distress is acute in
Karnataka’s northern dry regions, while the
incidence of suicides has been very high
since 1997. Aside from indebtness, farmers’
distress is acute in Karnataka can be
attributed to lack of proper resources, poor
extension services, frequent failure of
monsoon and droughts resulting in crops
losses, and absence of institutions where
farmers could seek counselling.
Hit by the sever drought prevailing in majority
of taluks in the state, Karnataka’s gross state
domestic products(GSDP) is projected to grow
at 9.6% during 2018-19, a dip of 80 basis points,
as compared to 10.4% in 2017-18 according to
Economic Survey for 2018-19 tabled in the state
legislature on Friday.
 AGRARIAN CRISIS CLEAR &PRESNT DANGER FOR
INDIAN ECONOMY
India’s gross domestic product (GDP) growth for the second quarter
(Q2) has laid bare the deepening distress in its villages. Farm incomes
haven’t risen even through the government has announced a hike in
minimum support prices. The country’s agricultural output, measured
a gross value added, grew at a sedate pace of 2.8%, far slower than
the 5.3% in the June quarter. This was on top of a low base of 2.6%
growth last year.
Economists said that the GDP deflator for agriculture is negative
for the first time in many years. In other words, farmers are earning
less than what they were before. Indeed, if the recent marches to New
Delhi by thousands of famers are any indication, the farm sector has
already sent up emergency flares.
What is notable is that even allied activities are growing
slower. This does not bode well for rural demand in the
coming months. For a government that will face the litmus
test of its policies through a national election within 6
months, the farm sector’s woes are unsettling. Although
agriculture contributes less than one-third of the output of
the entire economy, rural centers are key demand areas.
Consumption demand from the rural economy also needs to
hold up for the overall growth rate to remain above 7%.
An extension of the troubles of the Indian economy has also been
visible on the expenditure side. Pride final consumption
expenditure side. Private final consumption has been the strongest
engine of growth and, incipient signs of a slowdown that was
followed by distress in the financial sector, will hurt economy.
To balance this gloom was a bright spark in gross fixed capital
formation. This grew at a brisk pace of 12.5%, but on a low base of
6.1% a year ago. Gross fixed capital formation has been growing
faster and faster every quarter over the last 5yrs, which is a sign of
traction in investment growth. Juxtaposing the not-so-bad 7.4%
growth in manufacturing gives hope on the employment front.
Even as the debate over revising past GDP growth rates continues,
the government and the markets should be really worried about
the impact of rural distress on the pace and direction of economic
growth.
FARMERS’ SUICIDES

 In 2018-19, 572 farmers suicides have been accepted as those relating to

agriculture, while another 128 are under review. In 2017-18, there were 1,050
accepted cases, which is 45.5% more than the 572. In a major relief to the
state government- which has spent most of its first year warding off daily
political dangers in Karnataka has dipped by 45% for year ending march 31,
even as one farmer killed himself evert 12 hours on average.
 In 2018-19, 572 farmers suicides have been accepted as those relating to
agriculture, while another 128 are under review. In 2017-18, there were 1050
accepted cases, which is 45.5% more than the 572. Now, if the 128 cases too
are considered as farmer suicides taking the total number to 700, the decline
would still be 33%.
 Initially, all the reports of farmers suicides as claimed by families are counted.
Then a committee examines whether they are farm related or not. Only those
 2019 KARNATAKA
FLOOD
 On 1st August 2019 1st week, due to heavy rainfall in the monsoon season, sever
flood affected the southern Indian State of Karnataka. As a security measure in the
prevailing situation of heavy rains, India Metrological Department issued Red alert
to several regions of coastal and mained regions of Karnataka state.
 Thousands of people were evacuated to safer places and relief camps. A total od
61 people have been killed and seven lakh have been displaced. As of 14 august
2019, over 6.97 lakh people were evacuated. Chief Minister BS Yeddyurappa had
announced a compensation of 5 lakh for the family members those who died in
the floods.
 For the past few days, torrential rains in north interior Karnataka has wreaked
havoc as many rivers, rivulets and small streams are in spate, reminiscent of the
floods in August this year, official sources said.
 The affected districts are Dharwad, Belagavi, Kalagurbi,
Gadag, Vijayapura, Bagalkote, Shivmogga and
Chikamangaluru, where water has gushed into houses
and government buildings, including schools and banks
in low-lying areas.
 Belagavi yet to recover from the flood-fury two months
ago, once again bore the burnt of the heavy downpour.
The Meteorological department recorded 58.14MM rain
from Sunday evening to Monday morning in Belagavi.
 Rainwater gushed into many houses in low-lying areas in
Chikkodi and some other places, forcing people to take
shelter on roof-tops.
 The Belagavi-Goa route was also affected near Jamboti
due to a landslide, which swept away many parked
vehicles, the sources said.
 In Belagavi district’s Gokak town, water from
KARNATAKA FLOOD RELIEF FUNDS: FARMERS SUFFER DUE TO LACK OF CROPS
LOSS COMPENSATION
As per reports, even though crops grown in total of 2,21,428 hectares
are destroyed, no relief fund for crops loss have been announced so
far either by the state or the central government. Six farmers have
already killed themselves.
 The flood affected parts of Karnataka have still
not received the relief funds nor has any relief
work started there. The B S Yeddyurappa- led
Bhartiya Janata Party(BJP) government in the state
had been waiting for a “surprise package” from
the BJP government at the Centre. However, after
two long months of waiting, the central
government announced the release of just Rs.
1,200crore as flood relief fund for Karnataka , as
opposed to the total requested amount of Rs 3,000
crore. The floods in August in the state have
caused a huge damage to housing as well as
crops agricultural land.
Taluks Loss in Hectares
Karwar 458
Ankola 1260
Kumta 1300
Honnavar 310
Bhatkal 30
Sirsi 1435
Yellapur 219
Mudagod 2095
Sidapur 648
Haliyal 1690
Supa 523