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Measures more consistent than one-time settlement are required to create and expand income-generating capacities in the agricultural sector. There is a strong repayment culture built into the Indian tradition and ethos, and frequent write-offs and waivers may weaken this.

All the same, this one-time waiver was urgently required for the farm sector as a palliative for the distressed farmers. As pointed out by Dr M. S. Swaminathan, this programme will mark the beginning of the end of farmer suicides.

Investment rate in the farm sector has gone up to 11 per cent from 10 per cent. Now, the government aims to increase gross capital formation rate to 16 per cent, and this will create tremendous capabilities in the farm sector. Other initiatives relating to irrigation, fresh bank loans, and so on, will be additional supports.

The surplus manpower, which is a burden for the farm sector will be absorbed under the National Rural Employment Guarantee programme in all the rural districts. The government must pay attention to other measures, including marketing of farm produce to ensure that farmers get remunerative prices, as this alone can be a real spur for farming activity

K. K.Ammannaya Udupi

More Stories on : Letters | Farm credit

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