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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.

Lateral upgrade to ailing annihilation

Updated: Oct 21, 2024

Lateral upgrade to ailing annihilation

Being the first person from the private sector to be appointed as chairperson of Securities and Exchange Board of India (SEBI) as part of the government’s lateral initiative, Madhabi Puri Buch also holds the honour of being the first woman to hold the top post as capital market regulator.

But the laurels that the former private sector banker enjoyed in her earlier stint with ICICI Bank, was marred with allegations that she and her husband were having a stake in offshore entities, which were used to artificially inflate shares of Adani group companies.

Terming the allegation as `character assassination, Buch clarified that all disclosures have already been furnished and the fund in question did not invest in any securities involving the Adani group.

When it rains, it pours. This allegation was subsequently followed by Congress Party allegation that Buch had received salary and post-retirement benefits from ICICI Bank after she quit the private sector bank.

In its clarification to the stock exchanges, ICICI Bank asserted that the payments made to Buch were purely retirement benefits after her exit from the bank and they were neither salary nor employee stock options.

Prior to these allegations, Buch tenure at SEBI was all about bringing in quick reforms on operational issues by changing the format of consultation paper to bring in larger responses digitally. Being data savvy, the rationale of her decisions were democratic based on big data analysis derived from the responses received to the consultation papers.

Further she bifurcated the duties of the SEBI staff between operations and enforcement, which were done by the same persons earlier. Having worked for the private sector in the capital market domain space, Buch had a better understanding of the subject compared to officers from the administrative service in the past that reflected even in her orders as a whole-time director at SEBI before becoming the chairperson. As a whole time director at SEBI, her orders on adjudication issues were more directional to the capital market space, according to experts in the compliance space. She was also quick to revamp the old provisions of the 90s at SEBI.

Being tech and data savvy, Buch enhanced regulatory surveillance and detection of market manipulation, insider trading and fraud while also emphasizing on strengthening corporate governance by introducing stricter rules for independent directors and enhancing disclosures for related-party transactions.

To put in perspective, the annual report of the capital market regulator in the just concluded financial year revealed that the number of investigations related to insider trading jumped to 175 in 2023-24 from 85 in the preceding year while probes related to front running jumped over three times to 83 from 24 in the preceding year.

Transparency in mutual funds by implementing measures to protect retail investors along with tightening norms for initial public offers, particularly in the SME platforms were some of her other positive initiatives including confirmation of denial of any market rumours within 24 hours for the top 100 listed companies which will be extended to top 250 companies from December 1. However increased transparency and compliance with tightening regulations led to increased operational costs for the market participants and hence faced resistance from certain quarters. Born in 1966, Buch completed her primary education in Mumbai and graduated with specialization in Mathematics from Delhi and later obtained a management degree from Indian Institute of Management, Ahmedabad. In between, she got engaged to Dhawal Buch, a director at a consumer goods multinational at the age of eighteen and got married at the age of 21.

Besides ICICI Bank, Buch also worked as a lecturer at a college in England, worked at Greater Pacific Capital in Singapore and ICICI Securities as its CEO. She also worked as executive director on several private sector companies and as a consultant for New Development Bank (Brics Bank).

What now remains to be seen, is whether Buch, who survived the 26/11 terror attack when she along with her husband, was attending a meeting at Taj, be able to overcome the current ordeal. Keeping fingers crossed for the times to come.

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