On 23rd May 2019, the BJP-led NDA coalition rode back to power with a thumping majority thereby assuring India of a stable government for the next 5 years. Amongst other things, one of the primary challenges the new government faces is reviving the agriculture industry in India.
Initiated with the noble aim of empowering farmers to market their own produce efficiently, and in the process double their income by 2022, on 14th April 2016, Government of India launched National Agricultural Market (NAM), which was later renamed as Electronic National Agricultural Market (e-NAM).
Since the last 7 decades, successive governments in India have tried their best to find a long-term solution to address the country’s ailing farm sector. But despite their best efforts, the Indian agriculture sector continues to stay distressed.
In the first part of this two-part series, we covered the various diverse perspectives that are emerging on Farm Loan Waivers in India and presented a new perspective – linking Commodity Spot Markets with short-term credit linkage initiatives to enhance famers’ bargaining power that will lead to better realisations for their agriculture produce.
The announcement of loan waivers for farmers has been cited as one of the key factors for a leading national party’s return to power in three Hindi heartland states of Madhya Pradesh, Chhattisgarh and Rajasthan. As we write this, diverse views from numerous experts on the efficacy of farm loan waivers are already in the air.