 "Villagers walk on dry bed of Mervewadi lake in Karad, Maharashtra on Wednesday, May 11, 2016 PTI")
The Associated Chambers of Commerce and Industry of India (Assocham) today urged the government to bear the burden of farm loans (repayment), besides reaching foodgrains to drought-hit areas at highly subsidised rates.
Expressing grave concern over the widespread rural crisis, Assocham president Sunil Kanoria said: "No meaningful gains can be accrued from over seven percent GDP growth if a large part of our population is pushed to live on the margins of distress and poverty. We at Assocham believe in holistic economic development which alone can help trade, business and industry. No one sector is isolated from the other. So, if one sector suffers, others must chip in."
Kanoria was in Hyderabad for his meeting with state Governor ESL Narasimhan on issues concerning the microfinance sector.
He said the industry body was not making an outright demand and asking banks to take the load of loan waiver or moratorium on agriculture loans since the banks themselves were going through unprecedented challenging times in terms of non-performing assets.
Instead, the government should commit maximum resources to the rural sector, as the fiscal burden on it has been considerably reduced thanks to ultra low prices of crude oil for about 18 months now, he said in a statement.
Kanoria, however, maintained that they were not suggesting populist measures like loan waver as an election freebie, but in case of natural distress like drought, the affected people have to be helped. "So, under the circumstances, there is absolutely no rationale that can point towards bad economics in providing relief to the needy," the Assocham president said.
