<b>Letters</b>: Enhanced credit

The hike in allocation of farm credit by 11 per cent from Rs 9 lakh crore to Rs 10 lakh crore, in addition to the separate fund for micro irrigation and dairy activity, is a welcome move.
 
Statistics show that banks and financial institutions are in a dilemma over whether to lend further to the farm sector, which is unable to service interest and repay debts due to the grim situation arising out of successive droughts.
 
This being the reality, farmers have already reached a saturation point in borrowing, hence the possibility for availing of further credit is