CPI food is at -2.6 - customers are paying much less than what they were last year. The farmers are getting poorer & farm loan waiver while a short term remedy (with serious fiscal repurcussions) is NOT the long term answer! We need a sustsinable Agrarian policy!

Farmers in India are forced to sell *only* in government controlled markets called Mandis under APMC act. Result- No effective bidding takes place to give the farmer the best of the prices.

A close look at Agriculture Census- India's per farmer land holding has consistently been going down since Independence and is lower than the breakthrough level. More farmers are sticking to less and less land - less and less income.

Indian government steps in by announcing the MSP- a sort of insurance if the prices fall too low. More and more farmers even when the land is not suited for the crops, start growing - Wheat, Rice, Sugarcane - protected under the MSP.

Land sustainablity falls but more & more generations stick to the falling income - India has not been able to produce low skilled manufacturing jobs to divert the agrarian population into productive sectors. Result? 60% Indians depend on least productive Agricultural income.

One kg walnuts outside my house costs Rs 250 (the lowest in years), the same quantity costs Rs 1000 in Big Bazaar. Because there are no lowscale agro-processing factories. Small packaging adds immense value to the produce. Result? Our export market remains untapped.

With no cold storage facilities, no private sector infrastructure, all farmers are forced to sell whatever price they get before the stock rots up- especially the horticulture produce. Result- Better harvest = Lower prices.

The government comes up with a suicidal policy (Read Election manifesto)-Farm loan waivers. They give an additional incentive to the farmer to remain in the least productive sector. The poorest of them don't even get the waiver because loans are availed by the better off farmers.

Nor does it help the govt policies which push this sector into more and more poverty. Scariest part- It makes the micro finance agriculture industry unviable in the long run. Our fiscal deficit goes up by 4% of our GDP into subsidising the LEAST productive sector of our economy.

This is why Farm loan waivers are NOT the solution. Govt should be forced out of Agriculture market and effective intervention of Private sector is the answer, while pushing for low skilled manufacturing jobs, PS pushing for an organic revolution to tap into the export market.

We the citizens of India demand an AGRARIAN POLICY and not Farm loan waiver lollypops.

-End of the thread-