Politics and Economics of Farm Loan Waiver
Post state bifurcation of Andhra Pradesh, there is a mad rush by the governments of the 2 new states to write of farm loan and loan by self- help group.
The UPA government too had written off farm loans in the not so distant past. This brings up a pertinent question as to the reasons why another write off is required.
The attached document covers impact of such write offs on economy and different sections of the society. It delves into the root cause of farm loan default and effectiveness of write offs in solving the issues.
Finally it lays down an alternative to farm loan waiver and revival of agriculture sector.
For the benefit of those who want to read it on the screen, it is copied in smaller sections below.
Your feedback, comments and inputs would be highly appreciated. more
The UPA government too had written off farm loans in the not so distant past. This brings up a pertinent question as to the reasons why another write off is required.
The attached document covers impact of such write offs on economy and different sections of the society. It delves into the root cause of farm loan default and effectiveness of write offs in solving the issues.
Finally it lays down an alternative to farm loan waiver and revival of agriculture sector.
For the benefit of those who want to read it on the screen, it is copied in smaller sections below.
Your feedback, comments and inputs would be highly appreciated. more
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Politicians are still hell bent on moving ahead with farm loan waiver. Is there anyone who can get sense in them? http://www.deccanchronicle.com/140622/nation-current-affairs/article/telangana-government-decides-waive-farm-loans more
Jun 22
I found this BJP National Executive resolution on agriculture. http://www.bjp.org/documents/national-executive-documents/2012/resolution-on-agriculture-passed-in-bjp-national-executive-meeting-in-mumbai It has lot of good content. Can we not convert this good content quickly into a new agriculture policy? more
Jun 20
While looking for study report on past farm loan write offs. I found this internship paper. http://ccs.in/internship_papers/2008/Loan-Waiver-and-Indian-Agriculture-195.pdf It clearly brings out that such write off would not stimulate agriculture. If politicians are genuinely concerned about improving agriculture then they should invest the money into development of farm infrastructure that would reduce the high input cost. Invest in organic manure and pesticides to replace chemical fertilizers and pesticides. develop micro irrigation through drip irrigation. Help recharge of water ground water levels by constructing check dams. Provide solar water pumps at reasonable cost to reduce dependence of expensive power. most importantly invest in the development of farmers through partnership and hand-holding instead of one way preaching that i found in some training sessions that I attended. more
Jun 20
I found this article which brings out the concerns voiced on my post. http://articles.economictimes.indiatimes.com/2014-06-17/news/50651393_1_debt-waiver-crop-loan-telangana-government more
Jun 20
Speaking of corruption, any scheme and program by government cannot be free from scam. Read this article on scam in previous write off by UPA. http://www.newindianexpress.com/nation/Farm-Loan-Waiver-Plan-Fraud-Shames-UPA/2014/02/02/article2032888.ece more
Jun 20
