Loan waiver for farmers

LOAN WAIVER FOR FARMERS

Loan waiver for farmers

The primary highlight of the government budget stops at complete loan waiver to little and marginal farmers. Every party during budget claims it as the historical step. They promote themselves as saviour of farmers. Visit Maharashtra, the worst affected state with more than thousand farmers suicide every year. Every time farming realted scheme is announced, the ruling and opposition parties fight among themselves for credit.

Where do the fundamental realities lie? Agricultural experts point out that loan waiver may only provide the usual short term relief and it can even create a bad habit for many who might indulge in more borrowing anticipating waivers in the future too. They say the need of the hour is more infrastructure investments in the agricultural sector. With the global trend of diminishing returns and rising costs of cultivation such investments should aim at providing irrigation services, extended electrical supply, adequate fertilizer and seeds. The land should be made more effective so the farmers can repay loans without needing waivers.




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