Economic Survey blames unusual demand drop for recent farm distress

Farm loan waivers may give 'significant' deflationary risks to economy

After a rather quiet first edition, the second volume of Economic Survey of 2016-17 dwelt on the negative impact of farm loan waivers in detail and blamed unusual demand drop alongside limited avenues for sale as being the main reason for the recent distress in agriculture.

It pitched for building strong market infrastructure to stop farmers from getting exposed to price risks. 

The survey which comes against the backdrop of massive agitation of farmers in several parts of the country leading to clamour for waiver of farm loans to save the growers said that managing and reducing the risks in