Is waiving of loans a solution for the farmers?The Madhya Pradesh and Chattisgarh State Governments waived the loans of the farmers which are under Rs 2 lakhs. The political parties always talk of waiving loans of farmers whenever there are elections. Is this a good practice? How long the loans can be waived without finding a permanent solution?
The best way is to fix the minimum support price in such a way that the farmer is not subjected to any loss and makes a decent profit to look after their families. This may burden the consumers but probably the best way. The other solution in my personal view is cooperative farming. The holdings of the farmers may be clubbed together into large units and adopt cooperative farming. This is easily said than done as there will be many problems. The main problem is that many of the farmers are having small holdings and may not like them to be clubbed into large units. The farming of large units can be done in a methodical and scientific manner resulting in lesser expenditure and more profits.
I personally feel that loan waivers are not a permanent solution. It is high time serious thought is given to solve the problems of farmers in a permanent manner than adopting temporary measures.