By Shivam Saklani
From planting crops, to finding a market for their produce, farmers in India Encounter a plethora of risks, observed the second volume of the Economic Survey 2016-17 released this Friday.
The Survey’s focus on risks comes against the backdrop of protests by farmers since June, demanding
loan waivers to which many states’ government have agreed (State government is being referred since Agriculture is a state subject).
The Survey notes that recent farm loan waivers will be deflationary since states which are waiving loans will either have to cut expenditure or raise taxes, both of which will reduce the demand in the economy. Such loan waivers, the survey said, could reduce aggregate demand by as much as 0.7% of the GDP, imparting significant deflationary shock to economy.
To prevent these situations from reappearing, the current government schemes are sufficient, only the
ground work in terms of educating farmers needs to be done thoroughly, so that the benefit of the schemes such as the Crop Insurance Scheme, National Agricultural Market, PMKSY etc. may reach even to the humblest farmer.
Good written but is there any transparency in loan waiver?
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