Loan waiver not lasting solution: Devendra Fadnavis to farmers

Following the UP government’s decision to extend a crop loan waiver, pressure has been mounting over similar demands in other states, especially Maharashtra, where the Opposition has been attacking the state government and demanding a crop loan waiver.

A farmer asked what could be done to ensure farmers don’t have to seek a crop loan waiver ever. Fadnavis replied, “While I’m not ruling it out completely, I would like to say it has to be provided at an appropriate time and adequately backed by greater infrastructure in the agriculture sector. We are making higher capital investments in the agriculture sector. Out of

Rs 31,000-crore capital investments, Rs 19,000 crore is allocated to the agriculture sector to help farmers.”

Referring to the 2008 crop loan waiver, he said, “Today, even if we were to give a Rs 30,000-crore loan waiver, it will surely give us political mileage. But does it make farmers self-reliant? It only helps them wipe off the current debt and seek a fresh loan. They land in the same debt trap. But what about their repaying capacity for the next term? My efforts are to infuse this Rs 30,000 crore regularly in agriculture to provide water, power and strong market linkages to farmers, which will minimise their debt burden with assured income provided through sustainable agriculture practices.”

He added, “I reiterate a crop loan waiver can be one of the many solutions, provided it is adequately supported with other aspects to help farmers. We will consider it at the right time.”