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  • Category: Miscellaneous

    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.
  • #655119
    Not only waiver of loans to farmers but also other Sops given by the government free to various people in various schemes are not solutions for the problems they face. But this has become a practice in India. The governments are trying to give many things to the people free so that they will vote for them again and again. The retirement age is 61 and the eligibility for pension is 57 years. What is the logic?
    The government should see that people will become self-sufficient and they will earn for their livelihoods. These sops are making people lazy. Many people started taking loans even though they don't require with a thought that the government may announce a waiver at any time.
    There are many ways to see that the farmers will earn enough. But if the prices are increased the general public will never accept and they will go against the existing government in the next elections. So the government will never fix these rates a little high so that the farmer will get a better rate.

    always confident

  • #655121
    It's a short term remedy but not a long term solution for the cause. In my point of view proper needs to be taken care of in context to the total production & the weather conditions which could provide the basis of restricting or increasing the imports of the cereals in accordance to when their is production loss or having a good agricultural output. For exceptional cases, this can be used but this will also let the farmers with the mindset that they will stop taking risks with a preference to look out for the other options such as the governmental assistance as a permanent solution which is not good.

  • #655127
    Waiving of loans (not only to farmers but to anybody) is a populist measure. No Government should resort to the practice except under extreme natural calamities. This populist measure weakens the country's economy and also encourage many others not to repay the loan taken from Government banks or financial institutions.
    Beware! I question everything and everybody.

  • #655130
    Although this topic has been discussed earlier also by me on this platform. But I would still like to comment on this. Loan waving was never a solution and nor is now. It just measures the government take to win the confidence of innocent farmers.
    Without realising the burden of this loan waving will ultimately fall into their heads only as ultimately its taxpayer's money which gets used in subsidies and loan waving instead of permanent infrastructure development and solution to this problem.
    The need of the hour is to take some strong action to be bad for some time and take harsh action to bring a revolutionary change in the system and reducing the dependency of farmers on government.

    "It is hardest thing in the world to be good thinker without being a good self examiner"

  • #655132
    I think most of us are not farmer background. We could not say that the waiver of the loan is the permanent solution. It is not at all. But I can say it is a great relief to our feeder who embrace the death due to defaulting of loan because his crop is burnt, washed and not getting the respectable price of what they give to yield that crop. They face many many problems. If we are going to list they are numerous heading from every field of basic need. Most of the farmer far away from basic education, water, technical support proper guidance. We have to penetrate this all things to their family. Waiver of loan definitely reduces their burden and stress.
    Well done is better than well said

  • #655134
    During natural calamities, farm loans can be waived and that's always a good decision. But the political parties announce every kind of waivers just for their own political gains. They do not think of the future and ultimately we all suffer for that. In one of the threads, I have opined that most of the farmers are staying in rural areas and they are not educated. This situation is misused by the political parties and the farmers are exploited. There is a demand for MSP for all the produce, it is not done in a uniform way and there are cases of harassments also these poor farmers face at the hands of landlords. Rather than waiving off the loans on a mass scale, a mechanism can be thought of where solutions will be provided on an individual basis.

    "Life is easier when you enjoy what you do"

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