The worst affected in India's farm crisis are small, marginal and tenant farmers. It's time to strengthen their hands
AGRARIAN DISTRESS is not limited to a single year or a particular place in India. Even in the highly productive East Godavari district of Andhra Pradesh, paddy farmers suffered losses in 19 out of 36 years, which forced them to declare crop holidays from time to time. In 2011, farmers declared crop holiday on a massive 40,468 hectares. Such acute farm distress often results in suicides. According to the National Crime Records Bureau, at least 8,007 farmers in the country killed themselves in 2016 alone.
To provide succour to farmers, Telangana, Andhra Pradesh, Maharashtra and Uttar Pradesh had earlier announced loan waivers. Though such a measure provides immediate relief, studies show that frequent loan waivers are not a solution for indebtedness, which accounts for 40 per cent of farmer suicides. In the long run, waivers discourage repayment by those who can afford to pay back. There is another drawback. Due to low repayment rates, banks either stop giving loans, especially to smallscale, marginal and tenant farmers, or use tactics like delayed sanctions, high collaterals and reduction in the loan quantum.
This leaves them at mercy of loan sharks
This story is from the July 16, 2018 edition of Down To Earth.
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This story is from the July 16, 2018 edition of Down To Earth.
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