Rationale for the index
In line with a current examine by Nabard, greater than 60% of the ‘very excessive’ and ‘excessive’ misery small and marginal farmers didn’t get mortgage waiver advantages within the final a few years.
In Maharashtra, as an example, greater than 42% of such farmers haven’t been eligible for mortgage waivers. Even in Uttar Pradesh, 47% farmers are disadvantaged of mortgage waiver profit.
Then again, sugarcane farmers from Maharashtra and UP obtained advantages of mortgage waivers, though they possessed irrigated land and loved value help.
Farmers with largely non-irrigated lands who develop lower-value crops particularly these which aren’t procured by the federal government at minimal help costs have little entry to the monetary system.
Key parts of the index
The index will combine excessive frequency information on climate situations, weather conditions, debt burden on farmers, agricultural commodities and the market.
It could measure variables similar to monsoon rains, extreme rainfalls, drought and dry spells, variations in temperature and soil moisture, yield of main crops in every district, space underneath irrigation, depth of underground water and weird frost. Advertising and marketing alternatives out there to the farmer together with MSP help may even be assessed.
The index may even have a metrics on the present degree of debt burden of the farmers, their entry to crop insurance coverage.
Based mostly on the severity of misery, the federal government and lenders can present a mix of unconditional grants, crop mortgage restructuring or full debt waivers. The help to particular person farmers may be based mostly on a mix of district index and particular person farmers’ misery measured by way of irrigation standing of his land, revenue from crops grown by him, common productiveness of the district and the typical value in Agricultural Produce Market Committee (APMC) markets of the district as in comparison with the typical value of the state.
Such an index may also help policymakers in not simply predicting but additionally monitoring farmer misery. Well timed monitoring of misery would assist in formulating mitigation measures. As an alternative of focusing simply on the side of crop damages, the index would offer a extra holistic view of farmer misery.
-The UPA authorities on the Centre introduced a Rs 60,000-crore mortgage waiver scheme for farmers in 2008
-13 states have rolled out farm mortgage waiver schemes since 2012-13
-Uttar Pradesh applied a Rs 36,000-crore mortgage waiver in 2019
-Maharashtra introduced a Rs 30,000-crore scheme in 2017