Rise in farm income, not loan waiver, is the panacea for rural distress

The Congress in Madhya Pradesh has already announced that it will be waiving loans up to Rs 200,000, which will cost in excess of Rs 350 billion

farmers protest
Farmers protest

On Monday, the newly appointed chief minister of Madhya Pradesh, Kamal Nath, proudly announced that his first executive decision was to waive farm loans in the state. While campaigning for the assembly elections, the Congress party had promised that if voted to power, it would waive farm loans within 10 days. Speaking to reporters on Tuesday, Rahul Gandhi gloated over the fact that this was done within six hours in Chhattisgarh and Madhya Pradesh, with Rajasthan to follow soon. But implementation is not going to be easy. According to Reserve Bank of India estimates in 2017, ...