The recent passing of former Prime Minister Dr. Manmohan Singh at the age of 92 has prompted farmers across India to reflect on his significant contributions to the agricultural sector. Among his numerous initiatives, the 2008 Agricultural Debt Waiver and Debt Relief Scheme stands out as a monumental relief effort, providing over ₹71,000 crore to alleviate farmers’ debts nationwide.
The 2008 Agricultural Debt Waiver and Debt Relief Scheme
In 2008, under Dr. Singh’s leadership, the Indian government introduced the Agricultural Debt Waiver and Debt Relief Scheme, aiming to:
- Alleviate Farmer Distress: Address the financial burdens faced by small and marginal farmers due to indebtedness.
- Enhance Agricultural Productivity: Enable farmers to invest in modern farming techniques and resources by freeing them from debt.
- Stimulate Rural Economy: Boost the rural economy by increasing farmers’ purchasing power and encouraging agricultural investments.
Key Features of the Scheme
The scheme was comprehensive, offering:
- Complete Loan Waiver: Full waiver of loans for small and marginal farmers, defined as those owning up to two hectares of land.
- One-Time Settlement (OTS): For other farmers, a 25% rebate on the outstanding loan amount, provided they paid the remaining 75%.
- Coverage: Approximately 43 million farmers benefited from the scheme, making it one of the largest debt relief efforts globally.
Farmers’ Recollections
Farmers who benefited from the scheme recall the relief it brought:
- Immediate Financial Relief: The waiver lifted the immediate burden of debt, allowing farmers to focus on cultivation without the looming threat of creditors.
- Renewed Investment in Agriculture: Freed from debt, many farmers invested in better seeds, equipment, and farming practices, leading to improved yields.
- Psychological Well-being: The scheme alleviated the mental stress associated with indebtedness, contributing to better overall well-being among farming communities.
Although such waivers are often criticised as short-term solutions to agrarian distress, farmer organisations like Kisan Mazdoor Morcha and SKM (Non-Political) continue to advocate for similar measures today. “We want the Centre to waive farmer loans to provide much-needed relief to them,” said Sarvan Singh Pandher, a coordinator of the movement, as quoted by TOI.
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Critiques and Challenges
While the scheme provided substantial relief, it faced certain criticisms:
- Exclusion of Non-Institutional Borrowers: Farmers indebted to informal moneylenders were not covered, leaving a segment of the farming community without relief.
- Short-Term Solution: Critics argued that the waiver addressed symptoms rather than underlying issues such as low agricultural productivity and lack of access to formal credit.
- Fiscal Impact: The substantial financial outlay raised concerns about the long-term fiscal health of the economy.
Legacy of Dr. Manmohan Singh
Beyond the debt waiver, Dr. Singh’s tenure was marked by several initiatives aimed at improving the socio-economic fabric of India:
- Economic Reforms: As Finance Minister in the early 1990s, he spearheaded liberalization policies that opened the Indian economy to global markets.
- Social Welfare Schemes: Introduction of programs like the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA), Right to Education, and Aadhaar, aiming to provide social security and improve quality of life.
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Current Farmer Movements and Demands
In light of Dr. Singh’s passing, current farmer movements have been vocal about their demands, drawing parallels to past relief efforts:
- Legal Guarantee on Minimum Support Price (MSP): Farmers are advocating for a legal assurance of MSP to ensure fair prices for their produce.
- Debt Waiver: Renewed calls for debt relief highlight the ongoing financial challenges faced by farmers, exacerbated by factors like erratic weather patterns and fluctuating market prices.
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Dr. Manmohan Singh’s Agricultural Debt Waiver and Debt Relief Scheme of 2008 remains a significant chapter in India’s agricultural history. As farmers commemorate his contributions, the scheme serves as a reminder of the impact of comprehensive policy measures in addressing agrarian distress. The ongoing demands from the farming community underscore the need for continued attention to sustainable agricultural practices and farmer welfare.
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