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Articles: Politics | Short term Sops
- Mr. venakata kutumbarao krothapalli
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Lok Satta Party points out that bank loan waiver for small and marginal farmers and one-time settlement for other farmers will provide only temporal relief to a small section of farmers. An overwhelming majority of farmers are outside the institutional framework and borrow from private moneylenders. The waiver is also iniquitous in that it rewards only defaulters and lets down borrowers who have repaid their loans.
Reacting to the Union budget 2008-09, Lok Satta Party President, Dr. Jayaprakash Narayan recalled that farmers continue to commit suicide although Governments have written off farmers’ loans off and on. Instead, the Government could have constituted a Rs.100,000 crore agricultural fund to resolve farmers’ problems once and for all by taking steps for increasing productivity and ensuring remunerative prices.
“We need to ensure credit to every farmer, small trader and labourer, improve marketing infrastructure, provide direct access to consumer, and add value to agricultural produce. A one-time loan waiver will temporarily improve banks’ balance sheets, but the plight of farmers and rural poor will remain unchanged. There is a real danger of rural credit system getting paralysed as it happened in 1990s.
The loan waiver, decided upon with an eye on elections, provides temporary relief for a microscopic section of farmers at the cost of long-term gains.”
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