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Question
We should recognise the indebtedness of the country to its farm families who toil to safeguard national food security. Loan waiver is the price we have to pay for the neglect of rural India over the past several decades. There has been a gradual decline in investment in key sectors related to agriculture such as infrastructure, marketing, post-harvest technology etc. The four crore farmers whose debt is to be relieved will be eligible for institutional credit for their cultivation expenses during Kharif 2008. The challenge is to prevent them from getting into the debt trap again. For this purpose the Central and various State governments should set up an Indebted Farmers' Support Consortium, comprising scientists, panchayat raj officials and others relevant to assist- ing farmers to improve the profitability and productivity of their farms in an environmentally sustainable manner. The smaller the farm the greater is the need for marketable surplus to reduce indebtedness. The Indebted Farmers' Support Consortium should aim to get all the four crore farmers all the benefits of the government schemes such as the Rashtriya Krishi Vikas Yojana, Irrigation Benefit Programme and others. If this is done every farm family released from the debt trap should be able to produce at least an additional half tonne per hectare of food grains. This should help increase food production by about 20 million tonnes by 2008-10. At a time when global and national food stocks are dwindling and prices are rising, this will be a timely gain for our national food security. We need to ensure that the outcome of the debt waiver enhances farmers' income and production. The prevailing gap between potential and actual yields in the crops of rainfed areas such as pulses and oilseeds is over 200 percent even with the necessary technologies on the shelf. We are now importing without duty large quantities of pulses and oilseeds. If helped, farmers can produce these at a lower cost. Opportunities for assured and remunerative marketing are essential if loan waiver is not to become a recurring event leading to the destruction of the credit system. This is why the Minimum Support Price is necessary for all not just for a few crops which is the case at present. This is the single most effective step to make loan waivers history. There is another urgent step which needs to be taken. The loan waiver does not cover those who borrow from moneylenders. It will not be possible for the government to scrutinise the veracity of such private deals but steps can be taken such as giving them Smart Cards which will entitle them to essential inputs like seeds and fertilisers. The gram sabha can be entrusted with the task of identifying these farmers so that there is transparency in the process and elimination of the chances for falsification and corruption. Fear of occasional misuse should not come in the way of enabling millions of poor farmers who have borrowed from informal sources if we are to achieve the goal of four percent growth in agriculture. |
What is the likely impact of ensuring farmers benefit from government schemes?
- They can use the credit from these schemes to repay moneylenders.
- The government can control the price rise.
- Increased agricultural production.
Options
Both A and B
All of the above
Only C
Both B and C
MCQ
Solution
Both B and C
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