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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.

US Vice President JD Vance, his family arrive in Delhi

  • PTI
  • Apr 21, 2025
  • 2 min read


NEW DELHI: US Vice President J D Vance arrived here on Monday on a four-day visit to India against the backdrop of ongoing negotiations for a bilateral trade agreement between the two strategic partners to address a variety of issues, including tariff and market access.


Vance is accompanied by his Indian-origin wife Usha Chilukuri and their three children Ewan, Vivek, Mirabel and a delegation of senior US government officials.


The US Vice President and the Second Lady were received at the Palam air base by Union Minister Ashwini Vaishnaw.


The American leader was also accorded a ceremonial welcome on his arrival.

In the evening, Prime Minister Narendra Modi will host a dinner for the Vances after holding wide-ranging talks with the US Vice President.


External Affairs Minister S Jaishankar, NSA Ajit Doval, Foreign Secretary Vikram Misri and Indian ambassador to US Vinay Mohan Kwatra are expected to be part of the Indian team to be led by PM Modi at the talks.


The focus of the meeting is likely to be on early finalisation of the proposed bilateral trade pact as well as ways to boost overall trajectory of ties between the two countries.


Besides Delhi, Vance and his family will travel to Jaipur and Agra.

Vance's first visit to India comes weeks after US President Donald Trump imposed and then paused a sweeping tariff regime against around 60 countries, including India.


New Delhi and Washington are now holding negotiations to seal a bilateral trade agreement that is expected to address a variety of issues, including tariff and market access.


Vance and his family are scheduled to leave for Jaipur on Monday night.

In Delhi, the US Vice President and his family are staying at the ITC Maurya Sheraton hotel.


On April 22, the Vances will visit a number of historical sites in Jaipur, including the Amer Fort, also known as Amber Fort. The fort is a UNESCO world heritage site.


In the afternoon, the US Vice President is scheduled to address a gathering at the Rajasthan International Centre in Jaipur.


Vance is expected to delved into broader aspects of India-US relations under the Donald Trump administration during his speech that is expected to be attended by diplomats, foreign policy experts, Indian government officials and academia.


The US Vice President and his family will travel to Agra on the morning of April 23, people familiar with the matter said.


In Agra, they will visit the Taj Mahal and Shilpgram which is an open air emporium showcasing various Indian artefacts, they said.


After concluding their visit to Agra, the Vances will return to Jaipur on the second half of April 23.


The US Vice President and his family will depart for the US from Jaipur on April 24, according to the people cited above.

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