Nitin Gadkari gets it right on farm loans—-सविस्तर माहितीसाठी इकॉनॉमिक टाइम्स मधील बातमी वाचावी.

Union minister Nitin Gadkari is spot on when he says farm loan waivers are not the answer to tackling rural distress. Making crop insurance more effective would certainly help, but a blanket loan waiver is clearly detrimental to the development of credit markets, adversely affects credit discipline and plain misallocates governmental funds that ought to shore up much-needed investment.
Over half the cropped area depends on rains for water. We need to boost agricultural productivity with a revamped irrigation and canal network, improved rural and district roads, besides investment in cold chains and better markets. We also need greater financial inclusion and timely access to agricultural credit from formal finance, but resorting to loan waivers would perversely disrupt and stymie credit markets.

via Nitin Gadkari gets it right on farm loans

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s