Despite the loan waiver decisions, the economic status of the farmers is apt

Due to the recent rains in the country, the debt forgiveness is being reverted to the farmers especially the farmers of Maharashtra. In Maharashtra, the formation of the government has been tight-lipped, but demands for amnesty are being sought from political parties. In the absence of the government, the Governor of Maharashtra has declared assistance to the farmers.

Even before the assembly elections in Maharashtra, political parties have announced loan waivers. Loan waivers are purely a political move, and it is argued that loan waiver eases farmers' debt and empowers farmers to invest. It is also claimed that productivity increases over time as farmers become empowered. But nothing has been seen since the loan waiver decisions and implementation so far.

Loan waiver ads do not hesitate to default to repayment of loans. According to the data obtained, the gross non-performing assets (NPA) in the agriculture sector has crossed Rs one trillion. Gross NPA's percentage in agricultural credit has been 5% and has increased significantly in the last two years. As the country's banking sector faces high NPAs, the increase in bad loans in the agricultural sector will further worsen the situation in the country's financial sector.

Farmers may have defaulted on loan repayments due to lower prices of agricultural produce and loss of crops. But one thing is certain that programs like loan waivers are ruining the credit culture. According to a recent Reserve Bank of India report, NPAs have increased in the states where the loan waiver was announced in 1-3 and 3-4. While other states where the loan is not waived, the state has not made a significant difference. Thus, the standard of defaulting in the expectation of a loan waiver keeps rising.

Loan waivers not only create problems for the banks but they are also becoming increasingly challenging for the government. Banks may not be ready to provide loans to farmers in states where they have waived farmer loans in the past because banks are slow to obtain money from the government. Farmers have to rush to lenders to meet their financial needs as banks stop getting loans.

Farmers have to get loans at high interest rates from the lenders. Due to the loan waiver, the fiscal position of the government is not seen as a problem. According to the Reserve Bank's estimates, loan waivers increased by 5% of the total increase in the state's revenue expenditure in fiscal year 6-8. Because states have limited financial concessions, decisions such as loan waivers reduce the power of investment in states' industrial or other development sectors.

Overall, there has been no significant benefit from the loan waiver, and it is with these experiences that political parties need to show courage to avoid making loan waiver decisions. The loan waiver has not and will not solve the basic problems of farmers. Extensive reforms in the field of agriculture are needed to address the problem of farmers. There is no opinion that farmers should not be provided support but there is a need for transparency in the financial assistance provided to the farmers.

There are several steps that must be taken to improve the condition of India's agricultural sector. Specially measures for water availability and protection of crops in case of excessive rainfall or flood. Managing water resources is a major challenge for farmers. Integrated irrigation facilities reduce dependence on rain water for agriculture.

Adequate irrigation system across the country can lead to stability in farm production and increase farmers' income. The recent rains in many parts of the country have caused heavy damage to the kharif crop. Timely arrangement of delivery of the harvested crop from the well-stocked farm will prevent the crop from being wasted. As a result, farmers may have less chance of being compensated.

It is known that due to the lack of necessary infrastructure, the loss of food grains and waste due to lack of necessary infrastructure during harvesting the crop from the farm to the market place and consumption point.

Due to the inadequate availability of cold storage systems and transportable transport facilities from villages, the incidence of crop rotation is often infected. Continuous efforts are required to prevent crop wastage, wastage and decay. Unless steps are taken to prevent various crop losses, the country's agricultural produce will not actually see an increase, which is necessary to increase the income of the farmers.

The agricultural reforms undertaken by any government at the center are often similar to old alcohol in new bottles. In these reforms, farmers are rarely empowered to fight the situation. One of the reasons behind this is the vote bank. It may be difficult to protect the farmers from damage caused by natural disasters, but it is necessary to build proper water facilities if every natural disaster such as drought or poor monsoon situation is to protect the farmers. It is not without doubt that any such political action will be taken by any political party, unless the farmer ceases to be regarded as a vote bank.