Date:12/03/2008 URL: http://www.thehindu.com/2008/03/12/stories/2008031255221000.htm

Opinion - Letters to the Editor

Farm loan waiver

The article “Oh! What a lovely waiver” (March 10) has examined the true impact of the Rs.60,000 crore waiver of farm loans on debt-ridden farmers. It has exposed the UPA government’s motive behind the timing of the waiver. That nothing has been done to mitigate the debt situation of farmers who have borrowed from moneylenders, and to distinguish dry land farmers of Vidharbha from other farmers, has rendered the waiver ineffective in addressing the immediate and long-term agrarian crisis.

J. Jayashankar,
Mayiladuthurai

The waiver does not cover small farmers who are heavily indebted to moneylenders. As the article clearly points out, Rs.60,000 crore is not as huge a figure as it is projected to be because banks write off such money as bad debts periodically. The government need not search for funds for the waiver and impose a cess on this pretext.

N. Suryanarayanan,
Chennai

The article has brilliantly exposed the hype surrounding the “unprecedented” loan waiver scheme. Dry lands are the worst-hit by the agrarian crisis and deserve special treatment. It is common knowledge that farming is of little viability on small holdings in dry lands. An overwhelming majority of farmers would, therefore, own more than 2 hectares of land. Curiously, the UPA government failed to take cognisance of this simple fact.

B. Jayanna Krupakar,
Surathkal

The reality about the so-called benedictory farm loan waiver is interesting. The waiver is an outcome of electionomics and is quite superficial in its approach. As for the corporate sector’s hue and cry over the budget being pro-farmer, it must understand that India wishes to achieve inclusive growth and bridge the gap between India and Bharat. I wonder why our corporates overlook the fact that even capitalist countries like the U.S. provide huge subsidies to their farm sectors.

Preeti Sharma,
Bareilly