Farm Loan Waiver: Is it a good idea or a bad one?

Farm Loan Waiver: Is it a good idea or a bad one?
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“To heal the temporary pain of farmers are we overlooking the technological advancement? To know whether loan waiver should be given or not CEV conducted a heated debate on Fri, 10 Aug.”


Farm Loan Waiver: Is it a good idea or a bad one?


The purpose was to analyze the impact of loan waivers on our farmers as well as the growth of the country.

The following points were kept by a group against the provision to the farmers

  • Loan waivers must be replaced by technological solutions to their problem in terms of better irrigational facilities, advanced equipment, etc.
  • Loan waivers is a temporary solution as it has no future aspects.
  • Agriculture is a business and thus is subject to risks like all others hence it doesn’t need any special attention.
  • Doling out farm loan waivers would add to the woes of Indian bank system, which is already reeling under the pressure of NPAs (non-performing assets). So the Indian economy may see a great drawback due to this provision.
  • UPA government in 2008 had announced a loan waiver to all small and marginal farmers across the country, which cost around 60000 crores which is a considerable percentage of our GDP. on the other hand the number of farm suicides had not seen any kind of dip, instead, it has increased.
  • Technologies have lead countries boost their farmer’s conditions, like China employs 300 million farmers but still, it ranks first in world farm production. Israel has only 20% arable land but 95% of its requirement is produced within a country, they and we got independence nearly at the same time but focusing on technological advancement have led them far ahead of us.
  • It is increasing the load on taxpayers.
  • We need to educate our farmers to adapt to new technology for the growth of the country as a whole.
  • In most cases, it has just become a political agenda to grab votes.
  • And just as reservation in India the deserving rarely gets benefited, corruption had killed the true essence of it.

Points to support the provision were as follows:

  • Agriculture is a business but it is subjected to maximum insecurities, the weather, the market, the pests, fire accidents and so on, thus the farmer needs a special consideration from the government.
  • Also, farming is the most basic lifeline industry, hence the involved i.e. farmers should be well-taken care off by govt.
  • Although loan waiver is a temporary solution but is a worth necessary step for ones who are poor and needy.
  • A huge section of India is dependent on farming so for sake of technological advancement we cannot deny their urgent need and risk their life like anything.
  • If working-class society thinks of insurance of their cars even, then why the farmer should be denied to get loan waivers for their failed crops.
  • Adopting the new technologies would be typical for Indian farmers, so bringing new advancements would not also lead us in the same direction as of other countries like Netherlands Australia, Israel, etc.


Considering the current conditions of farmers in India, denying loan waivers for failed crops will create a havoc to the farmers and surely will lead to anguish among farmers for the govt, on the same time spending such a huge sum of money will also lead India nowhere, both technologically and economically.

A responsible committee to ensure that only deserving gets loan waivers should be set up. Technical advancement and conventional methods to lift our farmers must go hand in hand with each other.

Minutes by:


2nd Year,SVNIT.

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