It would seem, for a change, that farmers are back in the reckoning. The newly installed Congress government in Madhya Pradesh quickly announced a loan waiver to farmers for up to two lakh rupees, after the present round of assembly polls has brought rural distress to centre-stage. A change in perception was quickly reinforced by Congress chief Rahul Gandhi, who said the new governments in both Rajasthan and Chhattisgarh would follow suit. Gandhi’s offer is also that this would be the pitch on which the Congress would approach the Lok Sabha polls. Farmers across the country might or might not be enthused. For, many such promises in the past had not materialised.
Notably, there has been more of crocodile tears for farmers than real help coming their way. A question might be raised as to why farmers and the entire rural economy are in such a pitiable state even after the same Congress party wielded power for six decades. The NDA led by the BJP too held power for repeated terms. All these did not lead to a noticeable strengthening of the rural economy. Farmer suicides are one too many, though not all of these might be due to crop loss or loan distress. As per estimates, 45 farmers commit suicide every day, or 12,000 farmers a year. At least, most of these could be avoided if there are effective mechanisms to help farmers with crop loss due to natural or other calamities, or if banks help them more liberally with loans and repayment provisions.
A crop loss is no small matter. Fact is, there is not even a proper pricing mechanism or distribution system at work to help small farmers who form the bulk of our population. Big talks by the Modi government too did not translate themselves into action. Since the 1990s, or since the age of liberalization, banks are reticent about extending loans to small and medium farmers. Chief minister Kamal Nath has a point when he asked why farm loans could not be written off when big loans by big businesses were written off.
The Niti Ayog’s contention in this matter is worth noting. Its take is that only 10 to 15 per cent of the farmers in backward states could benefit out of loan waivers, termed a “palliative” for temporary relief rather than a long-term solution or redressal mechanism. Going round and round, and reaching nowhere, will not help. Meaningful help should be at hand to farmers which will translate itself into strengthening the rural sector as a whole.