I agree that it doesnot make economic sense to take such a decision,but it definitely make political sense.
But the farmers issue is really of serious concern.How can one digest that the country is growing at a great speed,and its one section of population commits suicide.
Its fashionable for the upper class to blame the farmers that they don't pay income tax etc..We also need to understand their problems.A farmer cannot determine the price of his commodity,the government fixes it without considering the cost of production,In cases where prices rises and farmers start to benefit a little ,the govt imports the commodity to stablise the rates.They don't have electricity for most part of the day,(in my village there is power only for 3 hours for the pump sets).The govt even bans export if the domestic prices start increasing.This way the farmer never ever benefits from his produce to the fullest extent.
I know of micro finance schemes where the repayment by the rural women is far far better than the urban,elite class.
Probably a better alternative than the waiver of the loans should have been thought of so that a farmer never again falls into a debt trap.
And further why blame the poor farmer alone when hundreds of industrialist collect money from investors and runaway,default on bank loans,default on electricity bills?
I'm sorry if my views hurt any one,but I thought we should also see a different perspective.
Nitin