WE CAN SAVE 17,000 FARMER SUICIDES PER YEAR

Rajan warns against farm loan waivers

Former RBI governor Raghuram Rajan on Friday cautioned against farm loan waivers and instead backed income transfers to ease distress in the agriculture sector

Read more at: https://lnkd.in/fZdgnfs

More than a year ago , I had suggested a " INCOME TRANSFER " scheme for the farmers and sent to the Cabinet Ministers , following email :

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A different kind of UFO ?

The UFO which all of us understand , stands for “ Unidentified  Flying  Object “

What I have in mind is “ Universal Farm  Output “

Something like currently talked about “ Universal Basic Income “ for the very poor

A great majority of our farmers , too , are very poor – and very indebted

Whenever the rains fail and their crops wither , they are forced to commit suicide ( - since for them , honour comes before life ) . Some 17,000 + every year

Other day , on TV , I heard a farm expert  wonder :

“ Even when the rains are reasonable , farm income of an ordinary farmer  barely comes to Rs 6,000 per acre ,

But ,

Our “ Farmer MPs “ ( who have declared their profession as “ Farming “ ) , show in their income tax return , “ agricultural income “ at Rs 6 lakh per acre , even when their land is located in a famine-stricken area  “

How come  ?  Using what “ technology “ do they pull off such a miracle ?

Of course , we will never know !

But that prompts following suggestion

Government has fixed MSP ( Minimum Support Price ) per quintal for most farm produce

It will buy , at this price , whatever quantity of grains , a farmer produces

But , during a famine , poor farmer cannot produce anything , not being in possession of that superior “ technology “ !

During such occasions , I suggest that the government pays him as follows :

·         MSP ( for the quantity of grains produced ) , or

·         Rs 6 lakhs per acre of land,

-      Whichever is higher  

Of course , we will need to lay down very strict criteria for deciding which farmer will get this UFO , where and when and how often !

23  Sept  2017

www.hemenparekh.in / blogs