Loan waivers are no panacea for India's farmers

A sweeping wave of loan waivers for farmers in India has generated serious debates across the country on their economics and likely outcomes. To date, 12 states have announced loan waivers amounting to more than $28 billion.

This cannot be a solution to India’s ongoing agrarian crisis. Instead, the government must look for long-term answers. There is also the danger of intense competition among political parties promising loan waivers—projecting themselves as the protectors of farmers—becoming the norm in the days before each election.

Photo: Adam Cohn