Sir — Maharashtra has announced farm-loan waiver that would cost the State exchequer Rs34,000 crore. This amount is second only to the loan-waiver announced by the Uttar Pradesh Government, which amounted to Rs36,000 crore. Karnataka too has given loan waivers to farmers to the tune of more than Rs8,000 crore.
In principle, farm-loan waivers make for bad economics. This may, however, prove to be good politics. But our farmers face deficient monsoons, years of drought and falling prices for their produce. Waivers are, therefore, not a lasting solution. The solution is to augment the income of farmers by giving them remunerative prices of products, crop insurance, storage and marketing facilities and jobs.