Microfinancin Firms and New Suicide Trend

There has been news from the Andhra Pradesh about some suicide cases which were due to non payment of loan from the micro-financing firms. There has been voices of concern from different quarters. Some have told to punish the microfinancing firm agents
http://www.deccanchronicle.com/hyderabad/suo-motu-case-against-lending-firms-160
while some have even called for ban on such firms
http://www.deccanchronicle.com/nellore/cpi-demands-ban-micro-finance-firms-936

These are knee jerk reactions and short term solutions. one should understand the real problem and go to the root cause.
what was the problem farmers faced in olden days. few can be listed
2) there were people who repeatedly borrowed money from the money lenders for investing in the farm. it was left to the honesty of the money lender. it must have supported the society for long time before it was accepted as system. but it was misused by few if not many and that pushed borrower in cycle of debt. some of them landed as bonded laborer for generations.
3)people thought one should save farmer from the clutches of the money lender. so banks were encouraged to lend money at lesser interest. in this process there was some fault to. banks were centralised and in many cases they did not understand the real need of farmers. major chunk of the loan was appropriated by the bigger farmers. really needy farmers did not even have enough documents to apply for the loan. apart from this this lead to populist measure by some politicians who announced loan melas and loan waiver in case of natural calamity destroying the crop.
4) subsidy was given on fertilizer and seeds were provided by governmen electricity was for irrigation was coming from central grid. even water canals were controlled by the central agencies. crop was bought by government. all these made farmers dependent on the goverment. they always looked at the goverment for next step. farmers lost their independence. in turn villages lost their independence.
5) bad does not come in a fearsome dress. do you remember abduction of Sita. it takes the form of golden dear and makes you loosen your guard. you even send way your protection away. then comes the rakshasa in form of a sage. there too sita had a chanse to protect herself. she should not have crossed the laksman rekha. but she crossed and then she suffered for an year for her mistake in the land of Ravana. Thank God she had Ram as her savior. but what about others
here the bad came in form of microfinace. the role of the moneylenders were taken over by these. the problem will repeat. history will repeat itself.

what are solutions?
make farmer independent for seed fertilizer and water sources. tell him to recycle the seed. tell him to generate manure in the village. tell hm to conserve water. government should focus on catching hoarders and black marketing persons. government should focus on the storage of food at local levels in village and taluka level. for water problem ponds should be dug in every village. independent village should be given incentives and promoted.
one cannot avoid natural calamities. but if they are regular happening then government can prepare itself and the people for it. such action will keep these money borrowing habit at the bay. don't eliminate such financing organizations but reduce dependence on them.