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By:

Akhilesh Sinha

25 June 2025 at 2:53:54 pm

Beyond the Waiver Reflex

As Tamil Nadu approaches a high-stakes election, its farm policy will test whether voters favour a blend of immediate relief and long-term reform over familiar short-term populism CM MK Stalin uses a handloom during an early morning outreach campaign ahead of the state Assembly elections in Ramanathapuram. Pic: PTI New Delhi: India’s farm policy is generally trapped in a loop. Each crisis, whether drought or flood has shown state governments usually reaching out for the same palliative...

Beyond the Waiver Reflex

As Tamil Nadu approaches a high-stakes election, its farm policy will test whether voters favour a blend of immediate relief and long-term reform over familiar short-term populism CM MK Stalin uses a handloom during an early morning outreach campaign ahead of the state Assembly elections in Ramanathapuram. Pic: PTI New Delhi: India’s farm policy is generally trapped in a loop. Each crisis, whether drought or flood has shown state governments usually reaching out for the same palliative instruments – be it loan waivers, raising procurement or subsidising inputs. However, these are measures that do not solve the problem, The underlying system of fragmented holdings, fickle markets and water stress remains brittle. What distinguishes Tamil Nadu’s recent approach in recent years - particularly under Edappadi K. Palaniswami’s tenure as Chief Minister - is not that it broke from this cycle, but that it tried to bend it. That matters all the more in a poll-bound state. As Tamil Nadu edges toward its next electoral test, farm policy is poised to become more than a ledger of promises. It is a referendum on whether voters reward immediate relief or longer-term repair - or, as this model suggests, a calibrated mix of both. Take the Rs. 12,110 crore crop loan waiver of 2021. The waiver came in the wake of the economic dislocation caused by COVID-19 and the destruction wrought by cyclones Cyclone Nivar and Cyclone Burevi. It functioned as a stabiliser during systemic shock. Crucially, it was paired with measures designed to reduce the likelihood of such distress recurring. Among the most consequential was the notification of the Cauvery delta as a Special Protected Agricultural Zone. Covering eight districts, the policy imposed restrictions on non-agricultural activities, effectively redrawing the boundary between industrial expansion and fertile land. In a country where urbanisation often consumes prime farmland, this was an explicit political choice: preservation over encroachment. Revival and Expansion Water management - Tamil Nadu’s perennial Achilles’ heel - was tackled through a blend of revival and expansion. The Kudimaramath scheme, rooted in traditional community-led tank restoration, was scaled up significantly, with thousands of works completed. Alongside this decentralised effort, the state pushed forward with the Athikadavu-Avinashi project, a large-scale attempt to divert surplus water from the Bhavani River to drought-prone regions. River-linking proposals and negotiated land acquisitions aimed to extend irrigation benefits further. The logic was that resilience begins with water security. Yet improving production is only half the battle. Farmers’ incomes depend less on what they grow than on what they earn. Here, too, Tamil Nadu attempted incremental correction. Procurement under price-support schemes was expanded beyond staples to include pulses and copra. The state set relatively generous support prices for paddy and sugarcane, seeking to inject a degree of predictability into an otherwise erratic market. Such measures cannot eliminate volatility, but they can soften its edges. Mitigating Ecological Risk Diversification has formed another layer of the strategy. India’s long-standing bias towards water-intensive monocropping has heightened ecological risk. Incentives were therefore introduced to promote millets and horticulture - crops better suited to changing climatic conditions. By integrating millets into the public distribution system in cities such as Chennai and Coimbatore, the state attempted something more ambitious: aligning production incentives with consumption patterns. It is a subtle but important shift. Lowering the cost of cultivation was another priority. Subsidised solar pump sets hinted at a convergence between agriculture and renewable energy, while assurances of continuous three-phase electricity addressed a mundane but critical constraint on farm productivity. These are not headline-grabbing reforms, but they shape the everyday economics of farming. Beyond the farm gate, attention turned to value addition. Plans for Mega Food Parks in districts such as Dindigul, Krishnagiri and Salem sought to integrate farmers into processing-led supply chains, reducing post-harvest losses and capturing greater value. Meanwhile, Tamil Nadu Agricultural University released dozens of new crop varieties and hybrids, spanning cereals, pulses and horticulture. Such investments in research and development rarely yield immediate political dividends, but they underpin long-term productivity. Institutional reform, too, has been part of the picture. Proposals for a State Agricultural Commission suggest a move towards continuous policy calibration rather than episodic intervention. Efforts to strengthen Farmer Producer Organisations through financial support, federated structures and tax relief reflect an understanding that aggregation is essential in modern agricultural markets. The contrast with the broader Indian pattern is instructive. Agriculture is often treated as a sector requiring periodic rescue rather than systemic redesign. Tamil Nadu’s approach, imperfect and incomplete though it is, hints at a different framing: farming as an economic system that must be made more resilient, diversified and knowledge-driven. The emphasis shifts from producing more to earning better. Under subsequent administrations, including that of M. K. Stalin, improvements in irrigation and output have continued, though the translation into higher farm incomes remains uneven. Tamil Nadu does not offer a ready-made template for India. Its geography, politics and institutional capacity are distinct. But its experience illustrates that where political intent aligns short-term relief with long-term restructuring, the contours of a more stable agrarian system begin to emerge. Over to the voters now.

BMC auctioning three land parcels to raise funds, says Aaditya

Updated: Oct 22, 2024

Aaditya

Mumbai: Shiv Sena (UBT) leader Aaditya Thackeray on Thursday alleged Mumbai’s civic body had decided to auction three land parcels to raise funds and make up for the “loot” of the metropolis by the Eknath Shinde government.


The Brihanmumbai Municipal Corporation, which is being run by an administrator now, has decided to auction the Chhatrapati Shivaji Maharaj Mandi (Market), the Brihanmumbai Electric Supply and Transport (BEST) Malabar Hill Receiving Station and the Worli Asphalt Plant, Thackeray pointed out.


“The sale of Mumbai is being done by the Eknath Shinde regime to benefit its favourite builders and contractors,” he alleged.


A criminal investigation will be conducted into the matter after the Maha Vikas Aghadi government comes to power, Thackeray added.


“So on one end, they looted the BMC and Mumbai and gave the money to their favourite contractors. Now, by auctioning these iconic and important land parcels, the BMC will be left without both funds and plots,” the Shiv Sena (UBT) leader and former state minister claimed.


When Shiv Sena started controlling the BMC in 1997, its finances were in deficit but by 2022 his party turned around the fiscal health of the civic body, Thackeray said.


Alleging that the Shinde government wants to drive Kolis and fisherfolk out of Mumbai, he said, “We will oppose this. It has to remain and be made into a fish market, and (should be) in the ownership of the BMC.”


Aaditya puppet for urban naxals: Shelar

Bharatiya Janata Party ( BJP ) Mumbai chief Ashish Shelar has called Uddhav Thackeray’s son and Shiv Sena (UBT) leader Aaditya Thackeray as a puppet for urban naxals after former’s comments on the Dharavi Redevelopment project and has also challenged him for a debate.

Ashish Shelar said that the project is a necessity and a priority project, adding that Uddhav Thackeray-led Shiv Sena and Congressleader Varsha Gaikwad are peddling lies.

Aaditya Thackeray seems to have become the spokesperson of urban Naxals. Without studying the subject (Dharavi) in detail, Aaditya Thackeray is speaking like an ignorant. I have seen that these people have been trying to set a narrative regarding Dharavi and the re-development work,” Ashish Shelar said.

He challenged Aaditya Thackeray and Varsha Gaikwad in a debate on the Dharavi Redevelopment Project.

“Uddhav ji and the people of his party – Aaditya Thackeray and Varsha Gaikwad have started this false narrative regarding Dharavi. I openly challenge Aaditya for a debate. I want to ask him that 70 per cent of the homes in the Dharavi Redevelopment Project will go to Marathi people, Muslims and Dalits. It is their rightful home, so why are they putting roadblocks by creating a false narrative?”

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