I’ve just learned of a heart breaking suicide by a dairy entrepreneur in Madurai—not the first, but perhaps the most urgent yet. Today, I call upon the entire dairy fraternity to confront a vital question: in the eyes of the system, what truly is the value of a dairy farmer’s or entrepreneur’s life? These individuals don’t borrow for profit—they borrow to feed families, support farmers, and fuel rural economies. Yet when debt deadlines arrive, they too often face eviction, humiliation—and sometimes death. This could happen to any one of us. Will we remain silent, or rise together and demand change?
The story of J. Rajapandi, a 52‑year‑old dairy businessman from A Malampatti, Madurai, brings this tragedy into stark relief. He borrowed from a bank three years ago and repaid punctually until seven months ago. When he missed EMI payments this June, the bank issued a notice to seal his firm by June 27. Although Rajapandi arranged a ₹35‑lakh demand draft, the bank sealed his unit before acknowledging receipt. Pressed and humiliated, he tragically took his own life at the MGR bus stand. The Madurai police have recorded a case under Section 194 BNSS, and S. A. Ponnusamy, president of the Tamil Nadu Milk Dealers Welfare Association, has condemned the bank’s actions and called for abetment charges against the authorities involved.
Please read it till the end
This is not an isolated incident. In November 2023, M. R. Albert, 73, president of the Kolakkad Dairy Co‑op in Kannur, Kerala, hanged himself after receiving an eviction notice on a ₹2‑lakh loan. That same month, Parappallil Thomas (“Joy”, 58), a Wayanad dairy society member, ended his life under more than ₹10‑lakh in debt. Across the country, dairy operators such as Munna Yadav in Lucknow, Bhoopathi in Salem, and Siyarām Meena in Rajasthan—all driven by ambition and community spirit—collapsed under the weight of state-backed loans and aggressive recovery tactics. Many others go unreported, buried beneath statistics.
Who are these entrepreneurs?
They are the unemployed graduates, small farmers, and rural youth drawn into the burgeoning startup ecosystem, propelled by initiatives like Startup India and Stand Up India. These programs offered collateral-free loans, credit guarantees, and subsidies—designed to foster self-enterprise in dairy supply chains, co‑operatives, value-added products, and community livelihoods. Unlike urban tech tycoons, they are community-minded visionaries, often supporting dozens of households.
Dairy entrepreneurs borrow not for their personal gain, but to:
- Provide regular income to smallholder farmers,
- Build employment in rural/semi-urban India,
- Support allied industries tied to dairy.
India claims to push for ease of doing business and support entrepreneurship. Yet, outdated policies and loopholes in enforcement allow banks to operate without empathy. When repayments falter, banks frequently resort to coercive measures—sealing assets, issuing public notices, freezing operations—without empathy.In Tamil Nadu’s Salem district, a farmer with a ₹4.8‑lakh loan tragically died after aggressive harassment by bank recovery agents—just days after the state passed a law to prevent such coercion. Tamil Nadu responded, passing the Money Lending Entities (Prevention of Coercive Actions) Bill, 2025, which bans aggressive recovery tactics, prescribes punishments up to five years in prison and ₹5-lakh fines, and introduces abetment charges if a borrower dies by suicide.Karnataka showed strong results when it passed guidelines cautioning banks against property attachment—farmer suicides dropped 70 %. Clearly, policy can matter—but implementation remains inconsistent.
Toward a Compassionate Future
The dairy community must unify around empathy, not debt. Banks and institutions should adopt human-centered recovery practices—offering counseling, restructuring, and support rather than threats. Governments must nationalize protections, penalize coercive recovery as Tamil Nadu has, and double down on accountability through audits and borrower redressal. Holistic support—like mental health counseling, financial planning, and cooperative lending structures—can ensure entrepreneurs don’t fall into despair.
Behind each loan EMI lies a village, a family, and a future. When repayment falters, we must not let ledgers outweigh lives. It’s time for banks, regulators, and communities to shift from enforcement to empathy—with lives and dignity held at the heart of finance.
Only then can India truly honor those who nourish its backbone—and prevent more dairy dreams from dying under bank pressure.
It’s time for the dairy fraternity to stand together against such insensitive treatment by regulators. After all, none of us knows what the future holds—it could happen to any one of us.
Source : Dairynews7x7 June 30th 2025..Blog by Kuldeep Sharma Chief Editor Dairynews7x7