Bhanwar Lal took the extreme step as he was under huge debt, and the bank and money lenders were pressurising him, his family said on Wednesday.
Few days ago, he had sold his land to repay the debt, but a significant loan amount was still pending.
An investigation in the case has been initiated.
A violent protest was also staged by the agitated farmers in Mandsaur over an agrarian crisis last year. The protest had also claimed lives of five farmers.