Is not it a surprise for all of us that so much farm loan had been distributed in all these years? We had an idea that successive governments cared a hoot for these poor people who happened to be the backbone of our country.
The Banks need not have to keep those unproductive loan papers in their strong rooms, any longer.
The biggest beneficiaries are the Banks. This Rs 30,000 Crore (the remains of the 25% waiver for other farmers) will directly go to their books in hard cash.
And while doing this exercise, the government is loosing practically nothing at all. The entire Rs. 60,000 Crore has already been provided for against Bad Debts by the Banks in all these years. Well distributed in these Four Years.
The Cleaver Move is the Brain-work of our PM, FM and some good economists who could think of such a good idea. By practically spending nothing, Votes of so many people are ensured.
It was a painstaking excersise since last 4 years, and the timing was perfect.
2008 is the best Budget in Indian History. FM Farm loan waiver is a very good move for India's progress. India Agriculture sectors accounted for 18.0% - 20.0% of the Indian GDP, and It employed 60% of the total Indian workforce.
I cant believe my eyes...Rs.60k Crores..WOWWW. Iam sure that, LOTS of ppl are going to make LOTS of money, whereas very few deserving-farmers would benefit. Pls rmbr that there are 'rich' farmers in India, who anyway, dont pay any taxes (agricultural income is tax-free), get subsidised electricity, and cheap loans. These ppl will benefit at the cost of our tax-money. If the govt spends, 60k crores in improving the agricultural infrastructure, then our farmers wont have to depend on Rain or middlemen, which is the main reason for their present condition. "YOu give a hungry-man a fish and u feed him for a day, But if u teach him to fish, then u feed him for whole life". Infact, in 60k crores, you can improve all the infrastructure of the whole country. Is our govt soooo rich??? WOW. THis is the most inefficient use of money.
RE:60k Crores.... WOOOOW
by Anis Kamdar on Mar 01, 2008 11:06 PM Permalink | Hide message
I agree with what you say. In future, this may also result that the farmers will stop paying for the loans they get - because FM has done away with their debts and they will look forward for a repeat. If FM wanted to do this, it should have been case-to-case basis and only those should have benefitted who had taken loan AND APPLIED LOAD FUNDS TO FARMING (and not otherwise) and genuinely work hard and still suffered loss and could not repay debt. At present, it is 60K crores down the drain future problems of non-repayment of loans.
Finance Minister's Budget will be beneficial to only few deserved farmers,but I strongly feel insteed Govt. can reduce interest rate to 4%P/A or less and should avoid additional interest on unpaid balance dues.Formality for loans can be simplfied.When natural or unforeseen situation disallows the farmer from paying dues,the interest can be waved and additional loan should be arranged for the next crop.This will give farmers a boost and Govt will not suffer .
Farmers' loans have been waived. This is at a cost of Rs. 60,000 crores to the exchequer.
Waiving appears to be good to farmers, but not really good.
That it was necessary to waive off the loans shows that something is really wrong with the agriculture.
This Rs. 60,000 crores could have been invested in some agricultural infrastructure, so that the agricultural sector can become strong and stand on its own legs.
This is a purely populist measure. This shows that the government is unable to help the farmers in any better way, other than just waiving off the loans.
This is similar to reservations. The government is unable to help the poor people in any better way, so it throws the reservations and quotas at them, to keep them happy.
This government is a miserable failure in all ways. It is good only in vote bank politics and populist measures.
This move will discourage honest loanees to default in the future, effectively promoting dishonesty. Every farmer will wait for similar waivers prior to every election year budget. The effort is completely self defeating.
Additionally, then, applying the same logic, why not also waive loans given to entrepreneurs and industrialists whose projects have failed due to unavoidable circumstances. Are these people also not contributing to the growth of the nation ?
This is ridiculous decision,many farmers must be repaying there loans keepin there stomach half filled while many others didnt even care to pay... in other words farmers who were doin right job of payin bk loan in installments will feel totally cheated as all the loans are gettin waived and in future even they will be encouraged not to pay back loan... great goin government
The important agenda for most developing countries at WTO are Farm Subsidies. The Trade ministries compare the farm subsidies of various developed countries and negotiatiate for the anti-dumping measures. The agricultural subsidies provided to farmers in most of the developed coutries are extremely high. European agricultural subsidies represent 44% of EU Budget apart from guaranting minimum produce price, imposition of import tariffs and quotas. The USA provides around $16Billion per year subsidies on various Agrucultural programs.
Finance minister has announced a Loan Waiver of Rs. 60,000 Crores, which is approximately equal to $16Billion. It would be interesting to note whether US Agricutural subsidy was considered as a benchmark while announcing the Loan waiver proposition.
This is still a very dangerous proposition because it would provide additional incentive to Indian rural population to stay in farms. The skill level required for agriculture is extremely low and a huge incentive like this will send wrong singals to the rural class.
However, there are certain advantages for such stimulas packages when compared to subsidies as it has been noticed that providing direct subsidies have promoted the farmers to employ unecological ways of increasing production such as indiscriminate use of fertilizers and pesticides with serious enviornmental concequences.
The second advantage of announcing such stimulas package i
RE:Agriculture Loan Waiver - The Hidden Agenda
by Manish Patel on Mar 01, 2008 08:13 AM Permalink
The second advantage of announcing such stimulas package is that it would not be considered as farm subsidy on the WTO table and would provide the requisite rights to India for negotiations at par.
RE:How many loans farmers have taken?
by Amit Kaushal on Mar 01, 2008 02:32 PM Permalink
abbe dhakan....sixty thousand crore mein 11 ZEROS aati hai aur tune 13 Zeroes dhali hai...lallu ke desh ka hai kya tuu...
RE:How many loans farmers have taken?
by neeraj kumar on Mar 01, 2008 06:07 PM Permalink
hello...!!! offense taken. if you hinted at bihar thru ur 'lallu ka desh' remark.
