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LATEST NEWS UPDATES | Why loan waivers won't fix India's agriculture woes -Milind Murugkar

Why loan waivers won't fix India's agriculture woes -Milind Murugkar

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published Published on Jun 13, 2017   modified Modified on Jun 13, 2017
-The Economic Times

Yogi Adityanath’s government in Uttar Pradesh opened a Pandora’s box of loan waivers and there seems to be no stopping it. The BJP, perceived by many as a reformist party committed to addressing chronic structural issues, is taking populism to new heights.

Loan waivers could prove to be a huge drain for the exchequer and might deal a blow to the creation of much-needed infrastructure in agriculture. The chief ministers of Madhya Pradesh and Maharashtra, Shivraj Singh Chouhan and Devendra Fadnavis, who seemed to be conscious of this danger, are now being forced to yield to the demand for loan waivers.

Who is responsible for this? Are the chief ministers victims of the anti-market policies of the Centre?

But first take a look at the serious structural issues that are thwarting agricultural development, especially rain-fed agriculture. Most of the agriculture in the country is rain-fed and saddled by low productivity.

This is despite impressive demonstrations for raising the groundwater table, which can be achieved through scientific watershed development. At the least, it will ensure protective irrigation for rain fed agriculture when it is in dire need of a little but timely water. This will ensure minimum productivity level of crop in monsoon (kharif ) and will open up the possibility of an additional crop post monsoon: this will be a game-changer for poor farmers. Public money spent here will offer big and quick returns.

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The Economic Times, 11 June, 2017, http://economictimes.indiatimes.com/news/politics-and-nation/why-loan-waivers-wont-fix-indias-agriculture-woes/articleshow/59086914.cms


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