Comments on: Farmers And Loans http://indianeconomy.org/2008/02/29/farmers-and-loans/ Issues & insights Sun, 20 Jul 2008 20:07:19 +0000 http://wordpress.org/?v=2.3.1 By: pratik http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265248 pratik Sat, 05 Apr 2008 17:16:23 +0000 http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265248 "To answer the original question, considering the Indian propensity to blow up money, I would say that the extra money goes for conspicuous consumption. Comment by HmmBut — March 1, 2008 @ 7:23 pm" I agree. Funds should be earmarked for specific purposes e.g seeds, technology, machinery, introducing new irrigation methods. Earmarking removes the potential for people (whoever they are, not just farmers) to think they know best and squander the money on someone else. “To answer the original question, considering the Indian propensity to blow up money, I would say that the extra money goes for conspicuous consumption.

Comment by HmmBut — March 1, 2008 @ 7:23 pm”

I agree. Funds should be earmarked for specific purposes e.g seeds, technology, machinery, introducing new irrigation methods. Earmarking removes the potential for people (whoever they are, not just farmers) to think they know best and squander the money on someone else.

]]> By: simran jeet singh http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265243 simran jeet singh Sat, 05 Apr 2008 05:25:38 +0000 http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265243 Is there only farmer community what goverment is thinking of, free electricity, free loans, morethan 30% hike in a year in msp of wheat and other commodities for farmers,still they feel bankcrupt, no taxes , almost no burden, it seems that for survival in india, one must be farmer.Aren"t there midddle class families, are not there lacs of small scale units, who have been forced to shut down their shutters due to wrong policies of government.There is a feeling of unrest in majority of population, which shall be seen in the elections, and never ever this type of government should come to power. Is there only farmer community what goverment is thinking of, free electricity, free loans, morethan 30% hike in a year in msp of wheat and other commodities for farmers,still they feel bankcrupt, no taxes , almost no burden, it seems that for survival in india, one must be farmer.Aren”t there midddle class families, are not there lacs of small scale units, who have been forced to shut down their shutters due to wrong policies of government.There is a feeling of unrest in majority of population, which shall be seen in the elections, and never ever this type of government should come to power.

]]> By: Travel Articles http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265101 Travel Articles Wed, 26 Mar 2008 06:21:10 +0000 http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265101 Just as there are tax amnesties, why not one for farmers? Farmers in the 3rd world countries cannot compete with US farmers who have the money, know-how, experience, subsidies and political clout. Where will you have these people work if the free-trade agreements tend to kill the agricultural industries of smaller nations. Just as there are tax amnesties, why not one for farmers?

Farmers in the 3rd world countries cannot compete with US farmers who have the money, know-how, experience, subsidies and political clout. Where will you have these people work if the free-trade agreements tend to kill the agricultural industries of smaller nations.

]]> By: Amit http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265040 Amit Sat, 22 Mar 2008 08:34:35 +0000 http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265040 A couple of articles arguing why Indian government should not only be waiving all the loans to the peasants but also the neoliberalism should be abandoned as quickly as possible: Praful Bidwai arguing that the waiver is not enough for the deep agrarian crisis: A budget for the urban rich, not farmers http://www.khaleejtimes.com/DisplayArticleNew.asp?section=opinion&xfile=data/opinion/2008/march/opinion_march29.xml The leading agrarian distress writer P. Sainath about the inefficiency of the waiver to meet the concerns: Oh! What a lovely waiver http://www.indiatogether.org/2008/mar/psa-waiver.htm Renowned economist Amit Bhaduri arguing that even the 'guru' of liberalization needs the ladder of waiver to win the election, which is unfortunately the only tool left for unorganized poor, who should be united together to eliminate the present corporate Indian state: Predatory Growth http://www.counterviews.org/Web_Doc/general/amit_bhaduri_predatory_growth.pdf Arvind Sivaramakrishnan feeling a pain over how the Indian establishment treats the peasants and poor as sub-human: Food insecurity: a form of violence http://www.hindu.com/2008/03/19/stories/2008031953011000.htm P. Sainath again brilliantly showing the ills of capitalist corporatization of the agriculture: Farm Crisis: Why have over one lakh farmers killed themselves in the last decade http://subalternstudies.com/?p=153 Thanks, Amit A couple of articles arguing why Indian government should not only be waiving all the loans to the peasants but also the neoliberalism should be abandoned as quickly as possible:

Praful Bidwai arguing that the waiver is not enough for the deep agrarian crisis:
A budget for the urban rich, not farmers
http://www.khaleejtimes.com/DisplayArticleNew.asp?section=opinion&xfile=data/opinion/2008/march/opinion_march29.xml

The leading agrarian distress writer P. Sainath about the inefficiency of the waiver to meet the concerns:
Oh! What a lovely waiver
http://www.indiatogether.org/2008/mar/psa-waiver.htm

Renowned economist Amit Bhaduri arguing that even the ‘guru’ of liberalization needs the ladder of waiver to win the election, which is unfortunately the only tool left for unorganized poor, who should be united together to eliminate the present corporate Indian state:
Predatory Growth
http://www.counterviews.org/Web_Doc/general/amit_bhaduri_predatory_growth.pdf

Arvind Sivaramakrishnan feeling a pain over how the Indian establishment treats the peasants and poor as sub-human:
Food insecurity: a form of violence
http://www.hindu.com/2008/03/19/stories/2008031953011000.htm

P. Sainath again brilliantly showing the ills of capitalist corporatization of the agriculture:
Farm Crisis: Why have over one lakh farmers killed themselves in the last decade
http://subalternstudies.com/?p=153

Thanks,
Amit

]]> By: Anil_R http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265036 Anil_R Sat, 22 Mar 2008 04:31:03 +0000 http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265036 There is an excellent analysis on why Indian farmer's are indebted at http://alternativeperspective.blogspot.com/2008/03/indian-budget08-when-is-sop-not-sop.html I copy excerpt from this blog, which to me make sense who is responsible for this crisis. ""...So why are Indian Farmers indebted? The decline in agriculture started during 1980's, with the decline of public investment in the sector — in irrigation, marketing infrastructure like warehousing, mandis, etc, and seeds and extension services. From 16.4 per cent in 1979-80, plan outlay in agriculture and allied activities slumped to 4.9 per cent in the Ninth Plan (1997-2002), making farming, always the most privatised, independent business, a totally support-less venture in these liberalised, globalised times (the fact that this coincided with the IMF loan is a different story) Meanwhile, the global prices have dropped: from $216/ton in 1995 to $133/ton in 2001 for wheat, $98.2/ton in 1995 to $49.1/ton in 2001 for cotton, $273/ton in 1995 to $178/ton for soyabean, etc. The drop in global prices is not because of increased productivity, efficiency and competitiveness of other developed economies, but due to the agricultural subsidies doled out by the rich nations to their agribusiness corporations (e.g., Monsanto, Cargill, Syngenta, etc.). For instance, the U.S government pays $193/ton to US Soya farmers; 25000 cotton producers in the U.S are given a subsidy of $4bn annually, etc., leading to a subsidy of $ 230 per acre in the USA. In the process, the Indian peasants are loosing $ 26 billion or Rs.1.2 trillion annually. This is a burden their poverty does not allow them to bear. Hence the epidemic of farmer suicides." There is an excellent analysis on why Indian farmer’s are indebted at

http://alternativeperspective.blogspot.com/2008/03/indian-budget08-when-is-sop-not-sop.html

I copy excerpt from this blog, which to me make sense who is responsible for this crisis.
“”…So why are Indian Farmers indebted?

The decline in agriculture started during 1980’s, with the decline of public investment in the sector — in irrigation, marketing infrastructure like warehousing, mandis, etc, and seeds and extension services. From 16.4 per cent in 1979-80, plan outlay in agriculture and allied activities slumped to 4.9 per cent in the Ninth Plan (1997-2002), making farming, always the most privatised, independent business, a totally support-less venture in these liberalised, globalised times (the fact that this coincided with the IMF loan is a different story)

Meanwhile, the global prices have dropped: from $216/ton in 1995 to $133/ton in 2001 for wheat, $98.2/ton in 1995 to $49.1/ton in 2001 for cotton, $273/ton in 1995 to $178/ton for soyabean, etc.

The drop in global prices is not because of increased productivity, efficiency and competitiveness of other developed economies, but due to the agricultural subsidies doled out by the rich nations to their agribusiness corporations (e.g., Monsanto, Cargill, Syngenta, etc.).

For instance, the U.S government pays $193/ton to US Soya farmers; 25000 cotton producers in the U.S are given a subsidy of $4bn annually, etc., leading to a subsidy of $ 230 per acre in the USA. In the process, the Indian peasants are loosing $ 26 billion or Rs.1.2 trillion annually. This is a burden their poverty does not allow them to bear. Hence the epidemic of farmer suicides.”

]]> By: sridhar kondoji http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265033 sridhar kondoji Fri, 21 Mar 2008 19:49:43 +0000 http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265033 I completely understand Farmers need help. Instead of write-off's, why doesn't corporate banks become part investors along with farmer? Let the farmer do the hard core stuff and Corporate bank invest in it. Also provide consulting services and educate him about the markets and help turn profits. Corproate banks are loosing money anyways, so why not loose or gain by investing? I completely understand Farmers need help. Instead of write-off’s, why doesn’t corporate banks become part investors along with farmer?
Let the farmer do the hard core stuff and Corporate bank invest in it. Also provide consulting services and educate him about the markets and help turn profits.
Corproate banks are loosing money anyways, so why not loose or gain by investing?

]]> By: Mahendra Singh http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265031 Mahendra Singh Fri, 21 Mar 2008 12:21:50 +0000 http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-265031 Waiving off the outstanding loans is not only going to encourage the defaulters to do the same every election year and at the same time would prove others fool who were otherwise paying off debt on time. It was nothing but a politically motivated step. What they were busy with when farmers were committing suicide in vidharbha and other areas of the country. This step should have been taken specially for areas which got affected badly by adverse climate/agriproduce that too with some relaxation in repayment terms.Waiving off partial loan amount could have been done to encourage good repayment track record holders. We talk of inclusive growth everytime for which we should equip our population with ways & means to become self sufficient rather than initiating a such trend. Waiving off the outstanding loans is not only going to encourage the defaulters to do the same every election year and at the same time would prove others fool who were otherwise paying off debt on time.
It was nothing but a politically motivated step. What they were busy with when farmers were committing suicide in vidharbha and other areas of the country. This step should have been taken specially for areas which got affected badly by adverse climate/agriproduce that too with some relaxation in repayment terms.Waiving off partial loan amount could have been done to encourage good repayment track record holders.
We talk of inclusive growth everytime for which we should equip our population with ways & means to become self sufficient rather than initiating a such trend.

]]> By: Singh http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-264987 Singh Mon, 17 Mar 2008 13:16:22 +0000 http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-264987 Isn't the problem the fact that there are too many farmers? I mean, in Canada, the people employed directly by the farming sector is miniscule, while the amount of space for agri is massive. In India, we have 600 million making a living off of farming, and we don't have much space either comparatively. How are farmers supposed to make a living if they have only a few acres of land?? IMHO, these people need to be trained such that they can move to a different section of the economy. Maybe subsidised private education for these people is a better solution than loan waivers or free electricity (as we have in Punjab). Isn’t the problem the fact that there are too many farmers? I mean, in Canada, the people employed directly by the farming sector is miniscule, while the amount of space for agri is massive. In India, we have 600 million making a living off of farming, and we don’t have much space either comparatively. How are farmers supposed to make a living if they have only a few acres of land?? IMHO, these people need to be trained such that they can move to a different section of the economy. Maybe subsidised private education for these people is a better solution than loan waivers or free electricity (as we have in Punjab).

]]> By: daniel http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-264940 daniel Fri, 14 Mar 2008 19:46:26 +0000 http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-264940 The upa govt has run out of ideas and in their desperate attempt to try to remain in power, they have resorted to almost trying to buy the votes. But will those farmer whose loans was waived really ever vote for them. The upa govt has run out of ideas and in their desperate attempt to try to remain in power, they have resorted to almost trying to buy the votes. But will those farmer whose loans was waived really ever vote for them.

]]> By: Balaji Viswnathan http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-264859 Balaji Viswnathan Tue, 11 Mar 2008 03:21:30 +0000 http://indianeconomy.org/2008/02/29/farmers-and-loans/#comment-264859 Who here thinks that the 600b write off will solve suicide problem. I dont think there is anybody in there who commits suicide for not being able to repay a government bank. In fact, most villagers see bank loan more of charity rather than something to repay. The problem is that of loan sharks and the government should wean away people from them towards banks. But, by weakening the banks in the current situation of a global banking crisis is hardly the right way. The government could make use of this money to extend the availability of bank credit to more regions and more farmers or even better it could used to improve irrigation and productivity, in cooperation with the private sector. But, socialism refuses to die in India even after years of torturing our nation and taking it to near death a number of times, it is thriving. This week's economist issue is covering this subject in detail with a cover story and 4 articles. Who here thinks that the 600b write off will solve suicide problem. I dont think there is anybody in there who commits suicide for not being able to repay a government bank. In fact, most villagers see bank loan more of charity rather than something to repay. The problem is that of loan sharks and the government should wean away people from them towards banks. But, by weakening the banks in the current situation of a global banking crisis is hardly the right way. The government could make use of this money to extend the availability of bank credit to more regions and more farmers or even better it could used to improve irrigation and productivity, in cooperation with the private sector. But, socialism refuses to die in India even after years of torturing our nation and taking it to near death a number of times, it is thriving. This week’s economist issue is covering this subject in detail with a cover story and 4 articles.

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