The government also continues to keep the profitability of agriculture artificially low. Few outside the farming sector realise the extent of laws that prevent farmers from selling their product directly in the market at the most competitive prices. The FCI and various mandi boards between them have effectively denied the farmer access to the open market. Even the kisan unions, with their entire focus on increasing the MSP for various crops, become complicit in tying down the farmer. Perhaps it would be better that the government removes such shackles and allows the farmer to sell his product in the open market at a competitive price.

Finally, before exclaiming at the present one-time farm loan waiver of Rs 600 billion, recall that in 1997 the Fifth Pay Commission had given a Rs 170 billion per year increase in salaries to all government employees. Surely farmers are more deserving than that.

The writer teaches history at Panjab University, Chandigarh. He is author of ‘Farmers suicide: facts and possible policy interventions’ (Yashada, Pune)

GOVERNMENT REPORTS ON AGRARIAN DISTRESS

2006 October Swaminathan report: Report of the National Commission on Farmers [given to the Ministry of Agriculture, Government of India]

2007 April Swarnkar report : Report of the Working Group to Examine the Procedures and Processes of Agricultural Loans [given to the Reserve Bank of India]

2007 July Radhakrishnan report: Report of the Expert Group on Agricultural Indebtedness [given to the Ministry of Finance, Government of India]