Waivers won’t wipe out farmers’ woes

Farmers may welcome the proposed farm loan waiver but the relief comes at a time when another concern looms large the possibility of an El Nino year that could disrupt the monsoon and affect rainfallFor farmers dependent on the monsoon even a slight shift in rainfall can make the difference between a decent harvest and financial distress After last yearrsquos crop damage caused by excessive rain in several parts of Maharashtra the prospect of another uncertain season is worrying both farmers and policymakersThe Mahayuti alliance had promised a farm loan waiver during the 2024 election campaign After coming to power however its leaders repeatedly stated that the decision would be made ldquoat an appropriate timerdquo whenever the issue was raised This drew criticism from many quarters that the government was delaying the fulfilment of its promiseThe proposal now appears to have moved to a fast track With farmers already under stress due to crop losses over the past year and concerns rising over a possible El Nino year the government seems to be considering some form of relief The renewed push for a loan waiver suggests that the administration is responding to growing agrarian distress and political pressure to deliver on its electoral commitmentThe Maharashtra government is now considering a farm loan waiver estimated at around R35000 crore which could benefit approximately 30 lakh farmers For many farmers such relief would provide immediate breathing space But it also raises a familiar question are loan waivers becoming the default response to deeper problems in agricultureJournalist P Sainath a Ramon Magsaysay Award winner known for his work on rural distress has often argued that loan waivers offer only temporary relief to farmers As he once put it ldquoA loan waiver is a tool not a transformation a relief but not the answerrdquo His observation reflects a broader reality while waivers ease immediate financial pressure they do little to address the structural challenges facing agricultureLoan waivers are not new to Maharashtra Successive governments have announced similar relief packages whenever agrarian distress has intensified While such measures provide shortterm respite they rarely address the underlying issues that push farmers into debt repeatedlyAgriculture remains one of the most uncertain livelihoods in the country Farmers face risks from multiple directions unpredictable weather fluctuating crop prices rising input costs and limited irrigation facilities In states like Maharashtra where large parts of farming still depend on rainfall a weak monsoon can quickly translate into crop losses and mounting debt The past year itself highlighted the sectorrsquos vulnerability Several districts experienced heavy rainfall that damaged crops forcing the government to announce a R31628 crore relief package Many farmers are still recovering from those losses The possibility of an El Nino year has now added another layer of uncertaintyIn such circumstances governments often face pressure to step in Ignoring rural distress can deepen economic hardship and even trigger social unrest From that perspective loan waivers function as an emergency relief measure during periods of acute crisisBut the larger question goes beyond immediate relief Repeated waivers also point to a deeper policy challenge If the same solution has to be used every few years it suggests that the fundamental problems in agriculture remain unresolved At the same time the cost of cultivation continues to rise Seeds fertilisers pesticides and electricity have become more expensive over the years When farm incomes fail to keep pace with these rising costs farmers increasingly rely on credit to sustain their farming operationsThis combination of uncertain rainfall unstable incomes and rising expenses creates a cycle that repeatedly pushes farmers into debt Loan waivers may ease the pressure temporarily but they do not break this cycleThere is also the larger question of the statersquos finances Maharashtra is already dealing with rising public debt which is projected to increase to Rs 1102654 crore in 202627 up from Rs 973989 crore in 202526 A farm loan waiver of this scale will add further strain on the statersquos budget and could reduce resources available for longterm investments in agricultureLoan waivers may be necessary during periods of severe distress and governments cannot ignore the hardships faced by farmers But such measures should be viewed as temporary relief rather than a lasting solutionIf Maharashtra wants to secure the future of its farmers the focus must shift from periodic debt relief to building a more resilient agricultural system Otherwise the state risks repeating the same cycle crop losses rising debt and another loan waiver announcement every few years Farmers do not need periodic bailouts as much as they need a system that ensures stable incomes and protection from therisks of farmingSanjeev Shivadekar is political editor midday He tweets SanjeevShivadekSend your feedback to mailbagmiddaycomThe views expressed in this column are the individualrsquos and donrsquot represent those of the paper