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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.

Reset in the East

After a period of drift, India and Bangladesh rediscover the logic of cooperation.

In history and diplomacy, geography is destiny but memory often intervenes. For India and Bangladesh, two neighbours bound by history, culture and an unruly border, the past has a habit of intruding upon the present. Yet recent developments suggest that the bilateral relationship, strained by political transitions and mutual suspicion, may be entering a phase of pragmatic recalibration.


The visit of Bangladesh’s foreign minister to New Delhi earlier this month signals an attempt by both sides to reset ties after nearly a year and a half of diplomatic chill. That frostiness followed political upheaval in Dhaka and a period of uneasy engagement under an interim dispensation under Muhammad Yunus, when mistrust deepened and cooperation stalled. Now, with a new government in place, both capitals appear keen to turn the page.


Decisive Role

The historical weight of the relationship is considerable. India played a decisive role in the birth of Bangladesh in 1971, intervening militarily to end Pakistan’s brutal campaign in its eastern wing. The legacy of that moment has long shaped bilateral ties, reinforced by shared linguistic and cultural affinities. Yet history, while binding, has not prevented periodic tensions between the two countries over water sharing, border management and domestic politics.


Under former PM Sheikh Hasina, Bangladesh had achieved notable economic progress and relative political stability in recent years, becoming one of South Asia’s more dynamic economies. But her later tenure was marred by internal dissent, culminating in political unrest that forced her resignation and a temporary shift in governance. That interregnum proved difficult for India-Bangladesh relations, with accusations of policy drift, concerns over minority rights, and a general cooling of diplomatic warmth.


The return to an elected government in Dhaka has created an opportunity both sides seem determined to seize. The foreign minister’s visit was an exercise in fine-tuning.


Several areas of cooperation stand out. Water sharing, always a sensitive issue, has re-emerged as a focal point. The Ganga water-sharing treaty, signed three decades ago, is due for renewal in 2026. Early discussions on its extension suggest a willingness to avoid the brinkmanship that has characterised past negotiations. For Bangladesh, equitable access to river waters is a matter of economic survival; for India, it is a test of regional goodwill.


Equally important is the restoration of visa services. In recent years, restrictions have disrupted travel for Bangladeshi citizens, affecting medical tourism, education and trade. India remains a preferred destination for affordable healthcare and business engagement. The easing of visa procedures is a tangible step towards rebuilding trust at the level of ordinary citizens.


Security cooperation also featured prominently. The India-Bangladesh border, one of the longest in the world, has often been a site of friction, marked by smuggling, illegal crossings and occasional violence. Both sides now speak of reducing tensions and enhancing coordination. Defence ties, though modest, are expected to deepen, particularly in areas such as counter-terrorism and intelligence sharing.


Critical Issues

Energy has emerged as another critical domain. Bangladesh faces an acute fuel shortage, with deficits in diesel, petrol and liquefied petroleum gas straining its economy and testing the new government’s credibility. India, with its expanding energy infrastructure, is well placed to assist. Discussions during the visit reportedly focused on alleviating these shortages.


Bangladesh occupies a pivotal position in South Asia, serving as a bridge between India’s northeastern states and the wider Indo-Pacific region. Stable relations are thus not merely desirable but strategically essential. In an era of intensifying great-power competition, both countries have an interest in ensuring that their partnership remains resilient.


The visit also underscores a shift in tone. Where recent interactions were marked by caution, the current engagement reflects a more constructive approach. Meetings with senior Indian officials, including the national security adviser and the petroleum minister, point to a comprehensive agenda that spans security, energy and regional cooperation.


None of this guarantees smooth sailing. Structural challenges remain, and the relationship will continue to be shaped by domestic politics in both countries. But the willingness to engage and to prioritise mutual interests suggests a maturing partnership.


For India and Bangladesh, the task now is to ensure that the current thaw is not a fleeting moment but the beginning of a more stable equilibrium grounded less in sentiment and more in shared interests.


If that proves possible, the recent visit may indeed be remembered as a modest but meaningful turning point.


(The writer is a foreign affairs expert. Views personal.)

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