Across India's sprawling western and southern plateau, where the black soil has long born a rich harvest of cotton, more than 3,600 farmers committed suicide in just four states over the past five years, according to official statistics.

But activists and farmers' groups say the figure is at least five times that.

Most of the suicides are reported from the three southern states of Andhra Pradesh, Kerala and Karnataka -- where the urban economy is booming -- as well as the prosperous western state of Maharashtra, home to India's financial capital, Mumbai.

On Saturday, Prime Minister Manmohan Singh said his government was handing out more than $155 million in one-time grants and interest waivers.

"In many cases, the overdue interest exceeds the principal amount. The entire (interest) amount will be waived ... so that they are eligible for fresh loans," Singh said after touring Maharashtra's Vidharba region.

He said debts totalling another $283 million were being restructured so farmers could repay over 3-5 years. He also announced a one-year moratorium on loan repayments for eligible farmers.

Many farmers borrow -- often amounts that would only buy a few drinks in a chic London or New York pub -- from the village moneylender at rates as high as 10 percent a month.

Their debts soar when crops fail or prices tumble. But those borrowing privately are not eligible for government relief.

Even those who borrow from banks, including state-run rural banks, often have to pay bribes for their loans.

Agriculture supports 600 million people, but contributes only a fifth of India's gross domestic product and accounts for only 12 percent of bank credit.

Singh's Congress swept to power in 2004 largely riding the support of the rural poor unhappy at missing out on the benefits of India's booming economy, one of the world's fastest growing.

But rising inflation and slow job creation have threatened to spoil the ruling Congress Party's image as a champion of the "aam admi", or common man.