This story is from December 16, 2018

Farm loan waiver a necessity: Kamal Nath

"I am not going to be deterred by what these economists say in their rooms. A farmer today is born in debt and all his life gets stifled under loan burden. Farm loan waiver is a necessity. Keep in mind that the economy of Madhya Pradesh is not counted by money but people," said Madhya Pradesh chief minister-designate Kamal Nath in an interview with TOI.
Farm loan waiver a necessity: Kamal Nath
Senior Congress leader Kamal Nath shows the Madhya Pradesh governor Anandiben Patel's letter inviting him to form the new government in the state, outside Raj Bhawan in Bhopal (PTI)
Madhya Pradesh chief minister-designate Kamal Nath , in an exclusive interview, told TOI on Saturday that farm loan waiver will be the Congress government’s main priority. If banks can give a breather to business houses, why not to farmers, he asks. Excerpts:
Congress has promised agri-loan waiver within 10 days of forming the government. However, former RBI governor Raghuram Rajan has said that farm loan waiver would create enormous problems for state finances…
A: If Raghuram Rajan understands villages, then let him speak.
If he can say how many years he has spent in villages and on agricultural fields. Because I am not going to be deterred by what these economists say in their rooms. A farmer today is born in debt and all his life gets stifled under loan burden. Farm loan waiver is a necessity. Keep in mind that the economy of Madhya Pradesh is not counted by money but people.
You have been Union minister for commerce and industry…
A: Yes, I have been the commerce minister and I know how the economy runs. There are 70% people in this state whose lives depend on agricultural sector. Not just farmers, there are also those who run grocery stores in rural areas and others who drive tractors on the field. There are also the poor who work as labourers in the agrarian sector. [In] Those grocery shops, payment of labourers is dependent on the purchasing power of farm sector. Who comes to the markets of Bhopal and Indore to purchase goods? Not the person living in New Delhi. There is no huge industry in this state, let us recognize this fact. It is the farm sector that supports these markets, too.

The Shivraj Singh Chouhan government announced it was committed to making agriculture a profitable venture. Where did it go wrong?
A: Do an analysis on why farmers got a bad deal in the last four years. It was a problem of excess. The state’s agricultural production increased. The crisis was not because of a shortfall. The government took Krishi Karman Awards for increase in production. But there was no procurement. If the government had increased the number of mandis, farmers would not have to queue outside for days, hoping for procurement of their produce. The Congress government took MSP for acquisition of wheat from Rs 550 to Rs 1,500 per quintal. How much did NDA increase? And even when they did, how much did they procure? How many farmers got the benefit of MSP?
Is loan waiver the best option to revive the agrarian economy?
A: We have a definite plan and strategy, which I will speak about after December 17. But go to the internet and check out the banks. See how they have waived loans of industries and business houses by 40%, even 50%. If we can waive loans of the big industrial houses, why can’t we do it for agriculture?
Rajan does not say waiving loans for industry will create a problem, why should it be a problem when agricultural loans are waived?It is said that development of the state might get affected.
A: There will be cutting of expenses, tightening of debt and resource mobilisation. It is a new thought process. We have a map for development that will be revealed soon. The biggest need of the hour in Madhya Pradesh is a change in the system. Just rules, regulations and yojanas will not work. What is the delivery system of these schemes? There are so many of these independent boards and ‘nigams’ in the state. What is their contribution?
When you were sent here as PCC chief in May, the party was thought to be totally decimated and faction-ridden while BJP seemed invincible. What did you do that the same party fought back and returned to power?
A: What worked was coordination and unity among leaders. We had to get back to the field those Congress workers who sat at home. It was to inspire and give them hope. We were up against the organisational might of BJP and their money power. So the only choice we had was to match them on the organisational front, which we don’t claim to have done fully, but to a large extent. I think we were at the organisational strength of 60%.
With 60% organisational strength, Congress won the elections?
A: I had a strategy in place — in May, I will do this, in June, this, and then when it came to October, then the strategy was planned week-wise. This was essential because we were against BJP that in 15 years had command over government employees, unions and social organisations that had lost faith in Congress. We had to instil faith in them. After a while, even sadhus started deserting BJP, not at my instance though.
You are the next chief minister. Which will be your constituency?
A: I am in a difficult situation here. Congress won all eight assembly seats in Chhindwara. There are only three non-reserved seats there. I had said that the seat with the largest margin is where I will contest from. But the seat where Congress got the largest margin is Saunser, where I am the voter and resident. But it’s not part of my Lok Sabha constituency. So this decision is yet to be made.
After the semi-finals, what happens in 2019?
A: We are getting ready for Lok Sabha 2019.
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