But chief ministers are surely aware that these waivers are not a durable solution. A national loan waiver for farmers nine years ago, for instance, did nothing to solve structural problems. Instead, through the mechanism of loan waivers, agricultural distress is now morphing into fiscal dangers for states. India’s farm economy is intertwined with the rest of the economy. The key to relieving agricultural distress is to replace the current policy of ad hoc interventions like farm loan waivers with one that holistically supports the transition away from a cereal-led rural economy.

Source: Times of India June 12, 2017 20:46 UTC