Farm Loan Waiver 2018-2019

A lot has been suggested by the GoI under the advise of Rahul Gandhi for waiving off the farm loans in India. Here is a glimpse of what can change and happen!

  1. Centre, not states- The onus can lie with the centre and not the states. Passing the baton through the states is not a good idea. Is it the time to keep agriculture under the Union List?
  2. Micro Finance- Working strategy of microfinance firms for ushering credits above 12% will create tumors that are not required. Law adherence for micro lending can be revised, if necessary closing. Any dealings with micro finance above a limit can have statuary affects.
  3. Clustering and grouping- A group of farmers, however small and medium, can form a group at the block level to guide and perceive information based on farming and advice. The small group loans can be passed through the farmers.
  4. Back ward Integration- Corporates and corporate identities working on backward integration can pool in resources to waive off farm loans based on pre-occupation and produce of farms.
  5. Total Waive Off- Partial loan waiver is not required, but fully, so that the states and farmers can stay fresh. A partial loan waiver will only result in time delays of loans.
  6. Agriculture Officer- Agriculture officers can work in tandem with block information officers for vigilance and grievance redressal and block development officers for information on produce and adherence to complaints and complaint resolutions.
  7. Bank Credits- Starting bank credits for NABARD and other rural banks can raise interest levels at a very granular level, if necessary. Forming micro credit bureaus for necessary adherence to laws can be necessary.
  8. Irrigation and farming information- Helping farmers to dissuade with new irrigation and farming information can help farmers and irrigation methods take a new shape. Pursuing information through progressive farmers in the group will only have positive affects.
  9. Raising MSP- Raising MSP suddenly will have a major impact on economy, until it is of 5-10% quanta of the MSP level every two years, and then three years. This will boost the agrarian economy, while the economic gain will accrue over the years, raising GDP per capita.
  10. Farming methods– New farming methods will allow a lot of information to flow- a project which needs time for farmers and GoI as well. Progressing through the groups will have better affects.


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