Islamic banking may solve farmer suicide crisis: Swaminathan




By TCN News,

Chennai: Eminent economist and Father of Indian green revolution, M S Swaminathan sees Islamic banking and finance system as solution to the farmer suicide crisis. At an award ceremony here yesterday Swaminathan said Islamic banking may be the solution to farmer suicide crisis in Vidarbha.

Speaking at Karuna Ratna award presentation function, Swaminathan expressed deep concern over the unending vicious cycle of debt and suicide in the Maharashtra region. He said the exorbitant lending rates charged by money lenders is the main root of crisis and thus interest-free Islamic banking could be a solution to the problem. “Even yesterday we heard news about 30 farmers who committed suicide in Vidarbha. Islamic banking, which propagates zero interest lending, could hold the key to solving this crisis”, he has been quoted as saying. He was presenting Karuna Awards.

The Karuna Awards for outstanding work on ahimsa, love for ecology and vegetarianism are given by Karuna International, Chennai. The awards were given to four eminent social workers including Padmashree Muzaffer Hussain, for research on Islam and vegetarianism, Chinny Krishna of Blue Cross and Nanditha Krishna of CPR Foundation.

Comments

Islamic Bank can be a solution for farmer suicide

Islamic Banking in India could / can be a solution to solve "farmer suicide", if allowed to operate without HURDLES and MOUSE-TRAPS in their operation.

Islamic Banking officials need to be ON-GUARD not only from insiders, but from outside SHARKS, whose traditional business will be hurt with introduction of this newly floated system.

They also need to closely study GOI policies and procedures, in order NOT TO get trapped in "loop-holes" / "land-mines" laid through government policies / procedures. This will be of PRIME IMPORTANCE for proper functioning and success of micro-credit banking system, which is running successfully in our neighbouring countries.

An Indian

Only people like Mr. M S Swaminathan can tell the truth boldly

I watch whatever Mr. M S Swaminathan is doing and saying in the past very carefully. He has been recognized by the West as one of the most respected revolutionist. He is right that Islamic Banking has stopped farmers and poor people suicide in a number of countries. Whenever poor farmers cannot pay their loan or even compound interest (many folds of their loan amount), they find only solution in the suicide. Even after 60 years of independence, still our farmars are ending their life by suicide only. This can be added as an achievement of the Government of India today. Let us give an open look and the benefits of Islamic Banking (in German, it is known as "zero interest banking") and save the lives of poor farmers. What India need is not sending the man to the moon, but saving the valuable lives of poor Indian farmers. Thank you Mr. M S Swaminathan. Kindly keep up your good work.

With all due respect to Mr.

With all due respect to Mr. Swaminathan, I do agree that Islamic finance may be a solution, however I am not 100% convinced. This is due to the fact that though banks under islamic finance do not charge interest rates, the transactions are designed in a way that banks do earn an interest which is shown as profit share in the books of the banks rather than "interest earned".

The crux of islamic finance is that the risk in the investment shall be borne equally by the bank and the recepient of the loan. However practically, it is seen that contracts are executed in the best interests of the bank.

Only providing finance is not a solution to the problem. The government should undertake measures such that reliance on nature is reduced. This means more reservoirs should be constructed and the farmers should be provided with technologically advanced means of agriculture. Today so many gulf countries who are oil rich but do not have water have become self sufficient by growing produce themselves using technology. Another solution can be providing alternate sources of employment to farmers.

Took So Long To Figure It Out

finally, someone managed to speak what was very obvious from the beginning, now that mr. swaminathan has spoken, i hope the govt. listens and acts accordingly.........

it would be a right move

It would definitely be a right move if implemented. As Islam is the solution for Humanity so as the Islamic banking solution of saving many innocent lives which are sacrificed every year due to burden of debts. Paying interests when a poor person is not in a condition to pay even the principal amount is not just difficult but impossible. The only option left with him then is to end his life. Islamic Banking could bring new hopes for such people.

it would be a right move

It would definitely be a right move if implemented. As Islam is the solution for Humanity so as the Islamic banking solution of saving many innocent lives which are sacrificed every year due to burden of debts. Paying interests when a poor person is not in a condition to pay even the principal amount is not just difficult but impossible. The only option left with him then is to end his life. Islamic Banking could bring new hopes for such people.

nice thanks Mr.M S

nice thanks Mr.M S swaminathan sir