Rural Financing

Finance Minister P Chidambaram has announced farm loan waiver of Rs 60,000 crore in this union Budget. Any decision that protects the right of the farming community is welcome. But before we congratulate him, some issues need to be resolved. The government should take proper care that every package it announces, should reach the target group. The agricultural sector in India is unstructured and most of the farmers are in the clutches of powerful moneylenders. So, the government, instead of playing vote bank politics should work on the grass root level and see that proper justice is done, The productivity of land in our country in not good. The farmers lack good irrigation facilities and most of the land in our country is unproductive. Illiteracy is another big issue among farmers and so they are vulnerable and likely to be attacked by the powerful moneylenders and local bankers. But the government, instead of taking a serious note of these, has taken a surface view. All steps have been taken to woo voters, as this is an election year.My experience in Rural sector tell me that this kind of decison is going to harm both farmers interest and banking institution. The economic prudence of farmers will be lost and it will not let them evolve and banks may refuse financing but that doesnt mean we should not do any thing


I have Five step formula
Arhtiya or local aggregator in every Mandi should be made procurement officer instead of FCI which should be replaced by Farmer corporation.
Their books should be bought by Govt and on case to case basis farmer officer can request for the Waiver.
Farmers should be asked for pooling up land and Farmers associations must be encouraged.
Regular training by farmer corporation to farmers, at district level.
Subsidy in crop input only only if farmer opt for govt farming policy.

All these are original Ideas which, i feel should implemented by govt, as we all know farmers are still not free from Mafia arthiya babus fiefdom so rosy pic of Idealism is not easy to acheive, so we should start with reality.