In 1992, Bill Clinton’s election advisor James Carville said, “It’s the economy, stupid.” In the run-up to general election in 2019, it might well be, “It’s the politics, stupid.”
In 1992, Bill Clinton’s election advisor James Carville said, “It’s the economy, stupid.” In the run-up to general election in 2019, it might well be, “It’s the politics, stupid.”
It is expected that a farmers’ income scheme may be announced in the next few weeks. Drawing up a direct investment support (DIS) scheme, estimated to cost Rs 2.8 lakh crore (if the entire gross cropped area is covered) should have ideally been done in close consultation with states, Reserve Bank of India (RBI) and domain experts, but after losing elections in Madhya Pradesh, Chhattisgarh and Rajasthan, where is the time for such conversation?
City-dwellers may think farmers are being pampered by all parties. Some are promising to waive crop loans while others are considering interest-free credit, nominal premiums for crop insurance and a crop-neutral, no strings attached DIS modelled on Telangana’s Rythu Bandhu. Few urban consumers will acknowledge that they are paying less than last year for several food items, including vegetables.
Farmers, on the other hand, are not able to figure out why there are so few buyers for several crops and prices are down from 2018 and 2017. Experts attribute this to higher production, collapse in demand, demonetisation and a global downturn in commodity prices. Though unorganised, farmers have been protesting against declining incomes with massive rallies.
Meanwhile, the media has led politicians to believe DIS will ensure electoral victory. Instead of thinking long-term, preparing a region-wise strategy and reforming the gamut of food, inputs, water and electricity subsidies, a uniform DIS is being considered a panacea for agriculture’s ills.
This can only have short-term impact. A nationwide DIS cannot be implemented by the Centre alone. States maintain a record of agricultural land, without which a DIS cannot be implemented. It’s not possible to correct land records to reflect current ownership in a few months, so DIS can only be an election promise.
It would be simplistic to assume that DIS alone won Telangana for the Telangana Rashtra Samithi. The state worked on DIS for over six months and a massive land record updation programme was undertaken in mission mode. Agriculture officers organised the first round, verifying ownership documents at meetings in villages. In the second round, the records were checked by revenue staff and change of ownership was recorded. Disputed cases were identified for early resolution through revenue courts.
Moreover, it is forgotten that Telangana had also waived farm loans of Rs 16,124 crore in 2014-18. A promise for another round of debt forgiveness is on the table. The state also announced free electricity for agriculture for 24 hours, which may cost Rs 4,984 crore per annum.
It is expected that a farmers’ income scheme may be announced in the next few weeks. Drawing up a direct investment support (DIS) scheme, estimated to cost Rs 2.8 lakh crore (if the entire gross cropped area is covered) should have ideally been done in close consultation with states, Reserve Bank of India (RBI) and domain experts, but after losing elections in Madhya Pradesh, Chhattisgarh and Rajasthan, where is the time for such conversation?
City-dwellers may think farmers are being pampered by all parties. Some are promising to waive crop loans while others are considering interest-free credit, nominal premiums for crop insurance and a crop-neutral, no strings attached DIS modelled on Telangana’s Rythu Bandhu. Few urban consumers will acknowledge that they are paying less than last year for several food items, including vegetables.
Farmers, on the other hand, are not able to figure out why there are so few buyers for several crops and prices are down from 2018 and 2017. Experts attribute this to higher production, collapse in demand, demonetisation and a global downturn in commodity prices. Though unorganised, farmers have been protesting against declining incomes with massive rallies.
Meanwhile, the media has led politicians to believe DIS will ensure electoral victory. Instead of thinking long-term, preparing a region-wise strategy and reforming the gamut of food, inputs, water and electricity subsidies, a uniform DIS is being considered a panacea for agriculture’s ills.
This can only have short-term impact. A nationwide DIS cannot be implemented by the Centre alone. States maintain a record of agricultural land, without which a DIS cannot be implemented. It’s not possible to correct land records to reflect current ownership in a few months, so DIS can only be an election promise.
It would be simplistic to assume that DIS alone won Telangana for the Telangana Rashtra Samithi. The state worked on DIS for over six months and a massive land record updation programme was undertaken in mission mode. Agriculture officers organised the first round, verifying ownership documents at meetings in villages. In the second round, the records were checked by revenue staff and change of ownership was recorded. Disputed cases were identified for early resolution through revenue courts.
Moreover, it is forgotten that Telangana had also waived farm loans of Rs 16,124 crore in 2014-18. A promise for another round of debt forgiveness is on the table. The state also announced free electricity for agriculture for 24 hours, which may cost Rs 4,984 crore per annum.