Telangana model can be one of the options instead of a farm loan waiver, says Niti Aayog vice chairman Rajiv Kumar

Government think-tank Niti Aayog on Thursday said there is an issue of farmers which needs to be addressed and the model adopted by Telangana government to address farmers issue can be one of the options instead of a farm loan waiver.

However, if you implement it across the country, the cost could be quite significant, said Rajiv Kumar, vice chairman, Niti Aayog.

"The cost of farm loan waiver as per Telangana model could be above Rs 2 lakh crore," Kumar told CNBC-TV18.

Telangana has introduced Rythu Bandhu or Farmers’ Investment Support Scheme, under which the assistance of Rs 8,000 an acre to all eligible farmers in two instalments of Rs 4,000 each would be given.

The first phase of the scheme was completed in May/June with about 50 lakh farmers receiving the cheques.

"I am not ruling anything out at the moment except to say that we in Niti Aayog are addressing the issue. We have taken note of it but at the moment there is not much that I can say by way of what actions or measures we would be recommending," Kumar added.

On adopting agriculture produce and livestock marketing act of 2017, Kumar said state government had committed to abolish Agricultural Produce Market Committee (APMC). "The government will adopt a new law to give farmers the freedom to market their produce," he said.

On Wednesday, joining the debate on farm loan waivers Kumar said it is not a solution to farm sector distress. "It is not a solution but is palliative," he said at a press conference after the release of Niti Aayog's 'Strategy for New India @ 75' document.

In its 'Strategy for New India@75' document released by finance minister Arun Jaitley, the think tank suggested many reform measures to increase the farm sector growth and double farmers' income by 2022.

Niti Aayog pitched for setting up an agricultural tribunal and auctioning of farm produce in mandis by fixing minimum reserve price.