Gist of Editorials: Quick Fix for the Farmer (Indian Express) | GS – III

Relevance : GS Paper III (Indian Economy)

[1000 words reduced to 150]

  • Recently, thousands of farmers held protest in Delhi.
  • Demands of farmers:
    • debate in Parliament on farm distress;
    • one-time loan waiver; and
    • raising MSPs and making them legally binding on private traders
  • Rationality of these demands:
    • debate would help understand and address farm distress better
    • loan waivers will largely help the well-off farmers, and will also hit public investments in agriculture adversely
    • an MSP formula based on just cost and ignoring demand would be inefficient
    • making MSP legally binding will turn out to be anti-farmer as it will discourage private traders
  • Way forward
    • need of reforms in agri-markets
    • encouraging contract farming, futures trading, etc.
    • investments to improve the functioning of markets
    • thinking of a sustained income support for farmers.
    • financial inclusion of small and marginal farmers
    • implementation of PM’s AASHA by state govts.
  • Quick fix of loan waivers is not a solution of farm distress.