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By:

Abhijit Mulye

21 August 2024 at 11:29:11 am

Fadnavis writes off Rs 48,000 crore

Mumbai: In a clear indication that the Maharashtra government is leaving no stone unturned to keep the state’s agrarian base happy, Chief Minister Devendra Fadnavis has unleashed yet another massive populist measure. Hot on the heels of relaxing the eligibility criteria to ensure a blanket farm loan waiver, the Chief Minister announced a sweeping Rs 48,000 crore waiver on the pending electricity bills of farmers across the state. Addressing a ‘Krutadnyata Sohala’ (gratitude ceremony)...

Fadnavis writes off Rs 48,000 crore

Mumbai: In a clear indication that the Maharashtra government is leaving no stone unturned to keep the state’s agrarian base happy, Chief Minister Devendra Fadnavis has unleashed yet another massive populist measure. Hot on the heels of relaxing the eligibility criteria to ensure a blanket farm loan waiver, the Chief Minister announced a sweeping Rs 48,000 crore waiver on the pending electricity bills of farmers across the state. Addressing a ‘Krutadnyata Sohala’ (gratitude ceremony) organized by the BJP Kisan Morcha at Mumbai’s Yashwantrao Chavan Pratishthan on Wednesday, Fadnavis declared that farmers using agricultural pumps of up to 7.5 horsepower will see their historical electricity dues completely wiped out. The announcement was met with the traditional sounding of the Tutari and thunderous applause from hundreds of farmers who had gathered from every corner of the state. The Chief Minister framed the mega-sop as a necessary step to “wipe the farmers’ slate clean,” enabling them to write a new chapter of prosperity. Calculated Pitch The timing and scale of the announcement underscore a government that is boldly embracing populist economics to solidify its political footprint in rural Maharashtra. While Fadnavis maintained that these decisions were taken purely in the interest of the farmers—pointing out that the original loan waiver was announced when no elections were in sight—the political undertones were unmistakable. Taking a sharp dig at the opposition, the Chief Minister accused rival parties of running “political shops” in the name of farmer agitations without understanding the government’s genuine intent. Asserting his grassroots connection, Fadnavis proudly claimed, “I do not make decisions sitting in my house. I am a farmer myself, a man of the soil.” He openly defended the government’s recent move to strip away the stringent conditions attached to the blanket farm loan waiver, signaling that his administration will not hesitate to clear bureaucratic hurdles if it means putting money directly into the hands of the rural voter. Balancing Sops Even as he rained freebies, the Chief Minister attempted to balance the populist optics with a dose of economic pragmatism. He acknowledged that handing out repeated loan waivers is a symptom of deep-rooted agrarian distress, not a permanent cure. Pointing to the Rs 95,000 crore in aid currently being pumped into the agricultural sector by the state and central governments, Fadnavis outlined his administration’s shift toward an investment-driven agricultural model. He championed the success of schemes like ‘Jalyukt Shivar’ and ‘Magel Tyala Shettale’ (farm ponds on demand), claiming these initiatives have already empowered farmers to harvest multiple crops a year. Addressing the core issue of farming costs, he noted that the government already subsidises power to the tune of Rs 25,000 crore annually. By coupling this with a push for solar pumps and solar agricultural feeders, he promised that 100 percent of the state’s farmers would receive uninterrupted daytime electricity by the end of the year. Infra Dream Looking beyond immediate financial relief, the Chief Minister laid out a grandiose vision to permanently drought-proof Maharashtra’s most vulnerable regions. A staggering Rs 6 lakh crore infrastructure pipeline is being planned to ensure the next generation never witnesses a drought. Fadnavis detailed ambitious river-linking projects, including the Wainganga-Nalganga link, to divert excess floodwaters to parched regions. The state plans to construct 24 new dams and raise the height of 16 existing ones to ensure not a single district in Vidarbha faces water scarcity. Furthermore, massive engineering feats are on the drawing board to divert 200 TMC of floodwater from Western Maharashtra to Marathwada, and lift 275 TMC of wasted water from the Ulhas basin to quench the thirst of North Maharashtra and Marathwada. By marrying immediate, massive debt relief with long-term infrastructure promises, the Fadnavis administration is aggressively cementing its pro-farmer narrative. As the Yashwantrao Chavan auditorium echoed with whistles and cheers, it became highly evident that the government’s strategy of pairing mega populist waivers with big-ticket rural dreams is striking a powerful chord with the state’s agrarian voters.

Tearful Harvest

Despair once again prevails in Maharashtra’s onion belt as angry farmers have launched protests across Nashik, Sambhaji Nagar and Solapur in wake of onion prices crashing to absurdly low levels. For cultivators who spent months battling erratic weather, rising fertiliser costs and mounting debt, the arithmetic is devastating. At such prices, farmers are unable even to recover transportation costs, let alone repay loans or sustain their households.


In the past, Governments in Delhi have risen and fallen over onion prices. In 1980, soaring onion prices contributed to public anger against the Janata Party government. In 1998, the BJP lost the Delhi Assembly elections amid voter fury over onions becoming prohibitively expensive. Few commodities possess such emotional resonance in Indian politics. Yet there is a cruel irony in India’s onion economy, namely that while consumers revolt when prices rise, farmers suffer when prices crash.


Farmers in Maharashtra are demanding procurement at Rs. 32 per kg, while the state government has announced an assured procurement price of Rs. 1,580 per quintal. Leaders of the opposition Maha Vikas Aghadi have openly challenged the Mahayuti government to show where procurement at those rates was actually taking place.


Yet the crisis illustrates a larger structural failure that no emergency meeting can fully conceal. India’s onion economy remains trapped in a cycle of volatility. When production dips, governments rush to ban exports, impose stock limits and flood markets with imports to calm urban consumers. But when production surges, farmers are abandoned to market collapses. The result is a deeply distorted agricultural ecosystem where cultivators bear the risks while political actors chase short-term electoral optics.


Maharashtra, which accounts for a substantial share of India’s onion production, has witnessed such turmoil repeatedly. The protests of 2018, when farmers dumped onions on roads in Nashik after prices crashed below cultivation costs, should have served as a warning. They did not. Nor did earlier agitations led by the Shetkari Sanghatana in the 1980s and 1990s, which highlighted the asymmetry between urban-centric policymaking and agrarian realities.


The present crisis is especially troubling because it strikes at a moment of already fragile rural sentiment. Farmer indebtedness remains acute. Climate variability has made cultivation increasingly precarious while input costs have risen steadily. Against this backdrop, a market collapse becomes a social issue, feeding anger, migration and, in the worst cases, suicides.


The answer lies not in episodic procurement announcements or reactive subsidies, but in deeper reforms. India requires better agricultural storage infrastructure, predictable export policies and decentralised food-processing networks that can absorb production gluts. Most importantly, policymakers must stop treating farmers merely as electoral constituencies to be placated during crises.


The onion has often moved governments because it affects the urban middle class. But a republic that ignores the tears of those who grow it risks a far deeper reckoning.

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