Opinion - Letters to the Editor   

Farm loan waiver

The editorial “Dispelling doubts on waiver” (March 17) is a fitting reply to short-sighted economists and critics of the Rs.60,314 crore farm loan waiver announced by Finance Minister P. Chidambaram in the 2008-09 budget. The opposition, particularly the Bharatiya Janata Party, criticised the UPA government for the increase in the number of farmers’ suicides all these years. After the government announced the waiver scheme, it is raising a hue and cry fearing the loss of farmers’ votes. As suggested in the editorial, the government should take follow-up measures for the waiver to have a lasting impact.

S. Nallasivan,

Tirunelveli

The government’s clarification that the waiver will be funded from tax buoyancy, non-tax sources and borrowings, if necessary, should adequately dispel doubts on the scheme. What bothers most farmers and agriculture scientists is the two-hectare eligibility for the waiver. What determine productivity are crop varieties, weather variables, and inputs such as irrigation and fertilizer. The waiver should, therefore, consider the agro-climatic factors and the farmers’ distress level. Crop losses caused by poor storage facilities, transport and assured market were among the reasons that drove farmers to borrow. The infrastructure facilities for post-harvest management should get priority if the waiver is to have a discernible impact.

V. Rajagopal,

Tirupati

Announcing farm loan waivers, particularly in the election-year budget, is nothing new for our politicians. Only effective follow-up measures can lend meaning to the exercise by securing the livelihood of poor farmers, and avert another populist waiver in five years’ time. The best we can hope is for the UPA government to be given another term that could lead to the implementation of these measures.

L. Santhosh,

Bangalore

The waiver will surely give relief to the farming community. But what the farm sector needs is a permanent support system. Education in farming methods must start in schools. The curriculum should include a course in the rudiments of farming. By the time the student leaves school, he or she should have knowledge in farm practices and management. The introduction of farm studies in schools will also bring down the dropout rate in the rural areas.

S. Chidambaresa Iyer,

Chennai

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