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Wednesday, January 15, 2025 | 03:07 PM ISTEN Hindi

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How farm loan waivers can hurt

Such bailouts do not have any measurable impact on improving consumption

farmer
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Illustration by binay sinha

Abheek Barua
Let’s get a couple of things straight right at the outset. Indian farmers remain vulnerable to a host of adversities that include both crop failure and overproduction. There are chronic problems of low farm-gate prices, with farmers at times getting less than a third of the final retail price. These often result in a crippling debt burden. The question is: Is the waiver of bank loans to farmers (I estimate it at a potential 2.6 per cent of gross domestic product or GDP, adding up the states that have declared and those that are planning a waiver) the answer?

To begin
Disclaimer: These are personal views of the writer. They do not necessarily reflect the opinion of www.business-standard.com or the Business Standard newspaper

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