Waiver Of Farm Credit

Stating that loan waivers and subsidies provide only temporary relief to farmers, Vice President M Venkaiah Naidu on Tuesday stressed on making Indian agriculture profitable by reducing input costs and providing uninterrupted power as well as credit at low interest rates to the farming community.

In his first rally since losing three big states to Congress and two others to regional parties in the recently held assembly elections, Prime Minister Narendra Modi virtually launched the BJP's campaign for the next year's national elections in Raebareli, the home turf of Sonia Gandhi.

"Farm loan waivers of up to 2 per cent of GDP in the run up to the 2019 hustings pose fiscal/rate risk and impacts credit culture," analysts at Bank of America Merill Lynch said in a note on Monday.

The RBI governor said such write-offs of loans also meant "transfers from taxpayers to borrowers. If on account of this, overall government borrowings go up, yields on government bonds also are impacted."

Echoing State Bank of India chief Arundhati Bhattacharya's views, Reserve Bank of India (RBI) Deputy Governor S.S. Mundra on Thursday expressed concern over farm loan waiver.

Ahead of the recently concluded assembly elections in Uttar Pradesh, the BJP had promised to bring in a loan waiver scheme for farmers in the state, if its voted to power.

Putting a question mark on the effectiveness of government's farm debt waiver programmes, Reserve Bank of India Governor Raghuram Rajan on Saturday said such schemes have constrained flow of credit to farmers.

Farmers in Karnataka on Wednesday staged a protest march under the banner of Rajya Raitha Sangha and Hasiru Sene demanding waiver of farm credit, permanent measures to check drought among others.

Stating that loan waivers and subsidies provide only temporary relief to farmers, Vice President M Venkaiah Naidu on Tuesday stressed on making Indian agriculture profitable by reducing input costs and providing uninterrupted power as well as credit at low interest rates to the farming community.

In his first rally since losing three big states to Congress and two others to regional parties in the recently held assembly elections, Prime Minister Narendra Modi virtually launched the BJP's campaign for the next year's national elections in Raebareli, the home turf of Sonia Gandhi.

"Farm loan waivers of up to 2 per cent of GDP in the run up to the 2019 hustings pose fiscal/rate risk and impacts credit culture," analysts at Bank of America Merill Lynch said in a note on Monday.

The RBI governor said such write-offs of loans also meant "transfers from taxpayers to borrowers. If on account of this, overall government borrowings go up, yields on government bonds also are impacted."

Echoing State Bank of India chief Arundhati Bhattacharya's views, Reserve Bank of India (RBI) Deputy Governor S.S. Mundra on Thursday expressed concern over farm loan waiver.

Ahead of the recently concluded assembly elections in Uttar Pradesh, the BJP had promised to bring in a loan waiver scheme for farmers in the state, if its voted to power.

Putting a question mark on the effectiveness of government's farm debt waiver programmes, Reserve Bank of India Governor Raghuram Rajan on Saturday said such schemes have constrained flow of credit to farmers.

Farmers in Karnataka on Wednesday staged a protest march under the banner of Rajya Raitha Sangha and Hasiru Sene demanding waiver of farm credit, permanent measures to check drought among others.