Indian Express

Express India

Screen

Loksatta

Express Cricket

Kashmir Live

Biz Publications
 
| Make this your homepage | Feedback

A stitch in time saves nine

Siddhartha Mitra
Posted online: Tuesday , February 26, 2008 at 21:33 hrs
Updated On: Monday , February 25, 2008 at 21:53 hrs


Font Size

Print

Feedback

Email

Discuss
Rate This Article
1 2 3 4 5 6 7 8 9 10
Rating:  0

Rumour mills are agog with word of a cess to be levied by the government to write off debts of suicide prone farmers. After several insignificant attempts at farmer welfare, the government has come up with this populist idea just before general elections. It is not populism in itself that needs to be criticised, though. After all, incumbent political parties are in the business of offering sops to win elections. However, once a sop decision has been made, it is advisable to be imaginative in its provision and allocation of benefits.

Very often, populist measures that gift large amounts of money to the poor fail to reach the targeted population, resulting instead in inflationary pressure that erodes the popularity of an incumbent government.

Indebtedness has been touted as a major reason for the incidence of suicides, especially among the cotton growers of Vidarbha. However, to solve the problem, we need to address the roots of indebtedness. By just “waving off debts”, as thank-you banners put it, the government would only relieve symptoms of a deeper malaise.

What is the root of the problem in Vidarbha? Lack of irrigation water. Farmers have been undertaking the hazardous task of cotton cultivation on unirrigated soil. While India’s progressive integration with the global free trade regime has led to a decline in prices of many crops, including cotton, no corresponding increase in farm productivity has happened in Vidarbha that can neutralise the effect. With the cost of cultivation also rising, as prices of pesticides, seeds and labour go up, unirrigated cotton farming has been rendered unviable.

Vidarbha has had other problems, too, notably the alleged stepmotherly treatment accorded to this region by the state government ever since Maharashtra came into being. The sugarcane districts around Kolhapur, which cover only about 5% of the cropped area, receive a lion’s share of the irrigation water supplied in the state, while cotton, with a much greater coverage, is almost denied any. It is still not too late to enhance irrigation facilities for cotton through better conservation and efficiency in other uses.

Levying a cess to rectify matters may be justifiable. However, what the government proposes to do with the funds raised belongs to the realm of myopic policymaking. It would have been more advisable to spend the sum raised through this cess on both debt financing and investment expenditure. I propose that only some part of the money raised...

Single Page Format 1 - 2 - Next
Ads by Google

Post Comments

Comments: (Limit 3,000 characters)
Name
Message
Email ID
Subject
TERMS OF USE:
The views represented here are not neccesarily endorsed by www.financialexpress.com and its allied websites. All messages will be moderated and no message that has inflammatory, abusive, derogatory language or any language deemed unfit for publication by the editor will be displayed. Though it will be endeavoured that as many messages as possible be displayed, there will be time lag between the submission and publication of the messages. The website reserves the right to publish or reject any message.
I agree to the terms of use.

Comments
Shaadi Matrimonials
Get Marriage Proposals by Email EVERYDAY!
Register FREE on Naukri.com.
200000+ Hot Job Openings!
Yatra Offers
10% cash back on Master Card
Send Raksha Bandhan
Gifts and Rakhis
Express Classifieds
Post and view free classifieds ad
Express Astrology
Know what's in the stars for you