Farm Loan Waivers aren’t a long Term Solution: Proves Telangana

Telangana modal of direct investment support(DIS), which is also known as the Rythu Bandhu scheme it seems to have all the attention of our politicians. Two states Jharkhand and Orissa have already announced a customised and superior edition of it while some teams have already visited Telangana to study this RB model benefit plan to support the farmer’s investment for two harvests per year.

But do you think RB model will alone help the Telangana Rashtriya Samiti (TRS) to flounce the recent general elections?

India is a country, where 70 per cent of its population depends upon agriculture. In its manifesto, the TRS promised to the farmers that the party would waive off the farm loans up to 1lakh. Actually, at the beginning of 2014 general elections, the party made a similar promise since the total crop loan was about Rs 14,897 crore. To fulfil its promise the government paid about Rs 16,124 crore to the Banks. More than 36 lakh farmers get benefit from this step of the government.

Now, once again the TRS has announced of loan waiver in their 2018 manifesto in Telangana. The total budget is approx 24,000 crores. So, it is not only the Rythu Bandhu which has attracted the voters in the state. Now a question arises that why the previous loan waiver didn’t achieve its target to making farmer debt free?

Rythu Bandhu scheme

The state government has put its all afford for the implementation of the Rythu Bandhu scheme. The government officials from revenue and agriculture unit have visited more than 10,800 villages to update the land records and confirmed 72.13 lakh piece of land to free them from proceedings. On this scheme, the government is spending about Rs 12,000 crore during Kharif and Rabi seasons. Rs 4,000 per acre will be given to landowner for each harvesting season.

TRS do no learn from Punjab

The state government has also announced that free electricity will be provided to the farmers irrespective of Punjab Case. Punjab has faced the water crisis just because of the same offer made by the government.

Political parties seem to adopt this method to win elections, but these steps are leading the country in dark. As we have seen it in the elections of Madhya Pradesh, Rajasthan, and Orissa. Loan waiver is not a solution but providing infrastructure to the farmers may be a significant step to eradicate the loan problem from the country. Because, in the end it increases the burden of middle-class people. Let’s hope that government will research this problem and come with some great plan.