Agri-economist Gulati for direct support to farmers

Agricultural economist Ashok Gulati has advocated direct support to farmers saying it is better than waiving their loans.

The comment comes amid announcements from the Centre and state governments of cash benefit to farmers, and demand from various political parties about waiver of loans taken by peasants.

"Direct support to farmers is better than loan waivers," Gulati said at an interactive session with The Bengal Chamber of Commerce & Industry on Wednesday evening.

In the interim-budget, the Narendra Modi government has announced Rs 6,000 per year assured income support to small and marginal farmers having less than two hectares of land in the interim-budget.

A few months ago, the West Bengal government offered direct benefits such as cash assistance of Rs 5,000 per acre to farmers. Besides, the state government will also pay premium for farmers adopting its crop and life insurance schemes.

"The policy reforms should be to augment farmers' income and change focus from tonnage centric to farmer centric," Gulati said.

"Most of the policies are restrictive. The private sectors are not allowed to hold stocks. Also free market should be allowed," he said.

The farmers are facing the problem of storage for surplus products, Padmashree awardee economist said.