Loan waiver no panacea

Farmers' income stability is possible only if govt ensures proper support prices for their produce

With reference to the editorial, “Make it count” (August 4), farmers’ distress persists. The severity of the distress depends on the rainfall. As 60 per cent of the population is engaged in agriculture and allied activities, any kind of change in their earnings impacts consumption, demand and the propensity to save.

There is a cascading effect on the overall growth of the economy. Stability in farmers’ earnings is possible only if the government ensures that they receive reasonable support prices for their produce, irrespective of a good or bad monsoon.

Another factor contributing to the distress of farmers is poor infrastructure. Lack of motorable roads inhibits approachability to markets, and farmers, particularly the landless, small and marginal ones, are forced to go for distressed sale of their produce. Development of markets is essential to enable farmers to sell their produce at competitive prices. 

Poor availability of health care systems leads to ill health and adversely affects the productivity of farm labourers. Lack of educational institutions adds to the woes of the rural population. It prevents them from adopting modern techniques and their dependence on primitive methods of cultivation hampers their productivity.

Availability of credit at affordable rates is essential to ensure smooth and profitable cultivation. The availability of institutional credit at affordable rates at the doorsteps of farmers is also far away. In fact, several farmers are still compelled to borrow from local moneylenders at exorbitant rates. This situation also contributes to the distress of farmers.

The government needs to come up with comprehensive reforms to accelerate the development of rural areas and eliminate the distress of farmers. Loan waiver is not the panacea for farmers’ distress, rather it hampers their willingness to repay the money. Instead of offering farmers loan waivers, they should be supported and encouraged to continue with their agricultural activities.

                     V S K Pillai   Changanacherry Letters can be mailed, faxed or e-mailed to: 

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