Indian agriculture is in dire need of mechanisation and modernisation to make it a self-sustaining commercial activity. It has become more of a compulsion for the farmers instead of a promising career opportunity. Dry lands are the worst-hit by the agrarian crisis and deserve special treatment. It is common knowledge that farming is of little viability on small holdings in dry lands. When nature rides roughshod over debt-ridden farmers in the form of erratic monsoon and crop failures, they face grim options. Indebtedness is a key reason for the many farmer suicides in the country. Loan waivers provide some relief to farmers in such situations, but there are debates about the long-term effectiveness of the measure. Waiving loans addicts the farmer to the concept that repayment is not to be expected. It is just like giving alms to able bodied beggar and perpetuating begging habits. It is to be remembered that loan waiver has not helped the farmers as it is a relief only for one season with the farmers going back to grind in the next. Giving such sop is also not economically viable as it reduces government’s fiscal power to intervene when needed the most.
Loan waiver is not a permanent measure for the farmer’s agony but it will prove to be a drag in the long run. It is a retrograde step in the development of the entire agricultural sector. Farmers are virtually on their death bed, so some booster dose will be helpful, but for how long the farmers will be kept alive. Farm debt waiver is not a permanent solution to farmers’ problems. In India where annual agriculture waste is about Rs 96,000 crore, farm loan waiver is just a poll sop with no long term economic gain for farmers in distress. The real crisis for Indian farmer is that he or she is not in control of the produce, unlike other businesses, and is dependent on cartel of traders to fetch a decent price. Don’t we think our Indian agriculture needs to be diversified and alternative sources of income generation like animal husbandry, horticulture; floriculture etc. should also be made a part of the agricultural milieu.
Here the point is not that government should not help distressed farmers. Some recent government initiatives such as developing an open market for agricultural produce, increasing coverage of crop insurance, building rural roads, among others are likely to be useful to the farming community.
