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  

View all 15 comments Below 15 comments
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  
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  
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  
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  
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  
Post a Comment

Related Posts

    • Should Convicts be Barred for Life from Polls?

      The above question is posed by Supreme Court to Central Government and Election Commission. If a convicted person is barred from govt. employment, what is the rationale behind provisions in the Rep...

      By MOHIT PANDE
      /
    • Request for Survey

      Local Circles please carry out a Survey on the following topic: * Noise pollution due to Loud Speakers at Religious Prayer places and its health effects viz increased stress levels, sleep dis...

      By MOHIT PANDE
      /
    • Stray Dogs Menace:

      A tragic incident occurred near Wadala Chowk in Jalandhar, where an elderly woman was attacked by 7-8 stray dogs while on her way to a Gurdwara early in the morning. The entire incident was recorde...

      By Harsimran Kaur
      /
    • Income Tax Act 1961: Suggestion for making it Simple

      Government had invited suggestions for simplifying Income Tax Act, 1961. In this connection I would like to suggest that “CHAPTER VI-A DEDUCTIONS TO BE MADE IN COMPUTING TOTAL INCOME” m...

      By MOHIT PANDE
      /
    • Not expected

      1) Tremendously increased VIP culture 2) Unnecessary expense on Opening ceremonies, Rallies 3) Increased Extra expense on protection of leaders 4) Any type of Appeasement

      By Mahen Patle
      /
    • FLOOD CONTROL – Solution

      Every year various parts of our country face floods during rainy season. This year floods were more severe. Since independence many proposals were submitted to Government which included River Linki...

      By MOHIT PANDE
      /
    • States holding BH registration of vehicles

      Ministry of roads had issued detailed guideline in the year 2022 for implementation of registration of vehicles under BH series. This step was a revolutionary step to reduce the hardships faced by ...

      By Abhishek Prahladka
      /
    • ALLOW WOMEN TO CARRY PEPPER SPRAY FOR SELF DEFENSE

      With increasing cases of Molestation, Rape and Rape & Murder in all over India, the Government should consider permitting women to carry 35 gm Pepper Spray for Self Defense. In places of e...

      By MOHIT PANDE
      /
    • BAN LOUDSPEAKERS AT RELIGIOUS PLACES OF WORSHIP

      Noise pollution is an invisible danger and impacts millions of people on a daily basis. The Noise Pollution (Regulation and Control) Rules, 2000 under the Environment (Protection) Act, 1986 ...

      By MOHIT PANDE
      /
    • Remove Input Tax Credit

      CBIC detects Rs. 36,374 Cr. Fake ITC in FY 2023-24 In a significant revelation, the Central Board of Indirect Taxes and Customs (CBIC) has reported a massive detection of fake Input Tax Credit...

      By MOHIT PANDE
      /
    • Good Governance in a Democracy and Citizens' expectations

      India is a country with enormous Manpower resources and it took 1st place in the world surpassing China. India is said to be world's largest Democracy and growing economy. Even after o...

      By RAGHONADH DUTT P
      /
Share
Enter your email and mobile number and we will send you the instructions

Note - The email can sometime gets delivered to the spam folder, so the instruction will be send to your mobile as well

All My Circles
Invite to
(Maximum 500 email ids allowed.)