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New Delhi (People's Daily) - Widespread farmer debt has led to 1,254 suicides in India's Maharashtra state from June to October, as only a few loan waiver applications have been approved, the India Times reported.

In the past 10 months, 2,414 farmers have committed suicide, 7% less than the 2,604 cases in the same period last year.

While the loan waiver policy, launched in 2008, was aimed at improving the farmers' livelihood, farmers said that the government has failed to address low agricultural product prices.

Cotton is Maharashtra's staple crop, and the price of this year's Rs 3,400 is lower than 5,400 last year. The government announced a minimum support price of Rs4,320, but barely anything has been procured.

As of March 2017, the central and state government have exempted Rs 88,988 crore ($13.9 billion) in loans to 48.6 million farmers over nine years. The loan waiver was projected to curb farmer suicides,and ease their widespread indebtedness.

However, 22.1 million small or marginal farmers have  a very slim opportunity to have their applications approved, which comprise 67.5% of the farmers in India. IndiaSpend reported in June that about 85% of farms are no bigger than two hectares. Since 1951, the per capita availability of land has declined 70% from 0.5 hectares to 0.15 hectares in 2011, according to the latest ministry of agriculture data.

On average, only a third of small and marginal farmers in India have access to institutional credit,  while other farmers rely on moneylenders and relatives for loans. Government data shows that  the previous loan waiver policy not only failed to stop farm suicides but have increased. Maharashtra recorded 4,291 suicides in 2015, its highest level.

The RBI governor said that waivers undermine an honest credit culture and leads to the crowding-out of private borrowers as high government borrowing tends to increase the cost of borrowing for others.