Yogi Adityanath Delivers On Modi’s Promise, Waives Farm Loans Worth Rs 30,729 Crore Yogi Adityanath

In Uttar Pradesh Chief Minister Yogi Adityanath’s first cabinet meeting in Lucknow today (4 April), loans worth Rs 30,729 crore were waived off for the small and marginal farmers. Beneficiary farmers will reportedly number around 86 lakh.

Farm loan waiver was the talking point well before the meeting was announced as the farming community had urged the Bharatiya Janata Party (BJP) to waive off loans – a promise the party itself had made during the recently-concluded assembly polls, and the Prime Minister himself much earlier.

While it can be said at this point that the BJP is keeping its election promise, critics have raised doubts over the effectiveness of populist measures like loan waivers. Too much focus has been laid on keeping unviable farm businesses alive by extending unsustainable artificial support and subsidies. “India needs an exit policy for unviable farmers and farming, not indefinite life support for them to stay in comatose conditions forever,” R Jagannathan has written about farm loan waivers.

Does this mean that farmers should not be extended relief in exceptional circumstances? Of course not. But instead of waivers from governments, the burden of natural disasters should be substantially borne by insurance. In highly exceptional cases, “debt relief can be considered, but only on accumulating interest dues, not the principal,” writes Jagannathan.

In the press briefing after the cabinet meet, minister Srikanth Sharma announced that the government had also decided to keep a target of 80 lakh tonnes for wheat purchase. Seven thousand wheat-purchase centres would also be set up in the state and will be monitored by Adityanath.

Minister Siddharth Nath Singh also said the government would introduce farmer bonds for the welfare of the farming community. Farmers will also reportedly get Rs 10 more than the minimum support price per quintal.

An Appeal...

Dear Reader,

As you are no doubt aware, Swarajya is a media product that is directly dependent on support from its readers in the form of subscriptions. We do not have the muscle and backing of a large media conglomerate nor are we playing for the large advertisement sweep-stake.

Our business model is you and your subscription. And in challenging times like these, we need your support now more than ever.

We deliver over 10 - 15 high quality articles with expert insights and views. From 7AM in the morning to 10PM late night we operate to ensure you, the reader, get to see what is just right.

Becoming a Patron or a subscriber for as little as Rs 1200/year is the best way you can support our efforts.

Become A Patron
Become A Subscriber
Advertisement