I think it's an economic issue and economic logic should guide any decision in this regard.The core issue is proper deployment of this scarce resource for optimum use.It's not the small farmers who default on repyment of loans but the big ones who deliberately misuse this beneficial measure to further their dark designs!
I completely against pursuing a populist policy of granting loans to all and sundry.The record shows a substantial part of it has been pocketed by big farmers!
There is a political angle to it and all these parties also get fat donations from these rich farmers.So these farmers take these loans with the single objective of not repaying it at all.Similarly banks too are biased against the poor farmers!
chinmoymukherjee wrote:
[quote]There is a political angle to it and all these parties also get fat donations from these rich farmers.So these farmers take these loans with the single objective of not repaying it at all.Similarly banks too are biased against the poor farmers![/quote]
The needy farmers should be given loan at cheaper rates. T avoid misuse of the loan, it will be better not to pay the amount direct to farmers but instead pay the amount to suppliers of fertilizers and other equipment on basis of proper documents and relevant evidence.
G. K. Ajmani Tax consultant http://gkajmani-mystraythoughts.blogspot.com/
Agricultural loans are available for a multitude of farming purposes. Farmers may apply for loans to buy inputs for the cultivation of food grain crops
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