When, prime minister, Modi during his high octane campaign in the run up to assembly elections in Uttar Pradesh [UP] promised loan waiver for farmers [albeit small and marginal/poor] in the state, he might not even have contemplated that state-after-states would be confronted with similar demands. In retrospect, this is precisely what has dawned on the political establishments particularly in states ruled by BJP viz. Maharashtra, Madhya Pradesh, Haryana etc. The irony is that whereas, BJP had voluntarily made a commitment in a poll bound state, the demand for loan waiver has surged even in states where it was not a poll promise. Those states have been coerced in to granting waivers using the modus operandi of protests and demonstrations....
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Category: Investment & growth
Unholy politician-trader nexus – behind farmers plight
For several decades, production of pulses in India has fallen substantially short of consumption. The persistent deficit has led to intermittent bouts of spike in their prices as imports [needed to plug it] have often come after lag and failed to reach consumption points in time – courtesy, handling, storage and transportation bottlenecks. The import of pulses in large quantity also resulted in huge outgo of foreign exchange exacerbating balance of payment problems especially during times when the macro-economic fundamentals were weak [for instance, during early 90s and 2012-13/2013-14]. This also affected the ability of the government to remain glued to the path of fiscal consolidation. Pulses are an important source of nutrition especially for vegetarians and a critical component...
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Yogi – Modi onslaught on poverty
The just concluded assembly elections in Uttar Pradesh [UP] were fought in the backdrop of deteriorating law and order situation, hostile environment for investment, crumbling infrastructure [sans a few pockets in urban areas], widespread farmers distress, their high level of indebtedness and acute shortage of bare necessities viz. home, food, education, health, water and electricity. The poor investment climate and pathetic law and order discouraged industrialists and businessmen from setting up factories/shops even as existing establishments were facing closure. Together with farming being un-remunerative/losing proposition, this made a deadly cocktail leading to large-scale loss of jobs and in turn, migration of youth en mass to other states such as Maharashtra and Gujarat. Promises galore BJP led by Modi promised liberation...
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PM agri–insurance scheme – challenges ahead
Farmers in India are constantly under the threat of drought and other natural calamities such as floods, hailstorms, pest attacks etc leading to unprecedented loss of crop output. Unable to pay back loans [taken for growing crop], tens of thousands of them commit suicide every year. It is a national curse. The issue has been debated several times in the parliament wherein parliamentarians across the political spectrum pledge to put an end to it but things have so far remained at a standstill. The Pradhan Mantri Phasal Bima Yojna [PMPBY] launched by Modi – government early this year has come as a beacon of hope. Under PMPBY, a farmer will be compensated for the crop loss by paying small premium...
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LOOKING AFRESH AT FARM SECTOR
The Modi Government has taken a slew of measures to double farmers’ income by 2022. However, for these efforts to succeed, State Governments must cooperate, as the real action can only take place at the ground level Prime Minister Narendra Modi’s objective to double farmers’ income by 2022 is being looked upon with scepticism. Critics argue that this will require an agricultural growth of more than 10 per cent per annum, at a time when growth in agriculture has collapsed to less than half a per cent per annum. Critics also argue that the minimum support price has risen only marginally (around four per cent) under the Modi dispensation. Both arguments are flawed. First, a number of States such as...
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‘Unshackle’ food sector before cash transfer
Emboldened by the success of DBT (direct benefit transfer) in LPG, the government is keen to launch this in food and fertilizers. To begin with, it will launch a pilot scheme in Puducherry where 330,000 ration card holders could receive Rs 300-400 a month each in their bank account in lieu of their monthly quota of rice after the lists are validated and their bank accounts are seeded with Aadhaar. Beneficiaries will be free to spend the money on any thing, not necessarily grain. If, the pilot in Puducherry is successful, it will be rolled out in other Union Territories (UTs) When juxtaposed with Modi – government’s tall claim about implementing DBT [a committee under Mr Shanta Kumar – a...
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