5. Farm Loan Waivers
<music> hub hopper originals <music> hello and welcome back to another episode of zero down a hopper originated in this episode we talk about an issue that has been debated passionately in the recent indicts on the twenty ninth of november thousands of farmers from on the corners of the country mosh today this historic dubbed as the kazan more germont draw draw the prevailing agrarian distress into public discourse again approximately three lack farmers have committed suicide between ninety and ninety five and two thousand fifteen. Most of these sites are driven by pressures of indebtedness on farmers duty cycle production farmland income many like buying fertilizers and pesticides for crops you too extreme uncertainty of the success of the crop and this lack of proper interest show to ensure the seal of produce at the right price. Most farmers are stuck in the vicious cycle of day over the years. The indebtedness of farmers only getting worse or two thousand fifteen n._s. Ota sovi estimated that more than half off-farm households are in debt addressing this issue beta state governments have come up with loan meals means since two thousand seventeen eight states announced what one point nine hundred eleven hundred ps some political bodies have gone one step further and advocated a nationwide known when we listen in teary alone is not completely useless as often suggested in the nineteen seventies. A concept called laughable was emerge. George emerged after the economist arthur laughable who use an upside down new ship go to illustrate his point about taxation laugh targeted relationship between tax rates and tax revenue was such that sometimes increasing tax rates could actually decrease the tax revenue the laugh ago represents sense the idea in a graphical way and why it does happen with accusation of being an over simplified example of reality the point it makes sounds indubitably true. This has since been obliged to are they gonna mix as van some propose a deadly ethical which draws a similar relationship between the amount long of that country and the likelihood of that money being paid back to the creditors the idea is that four going some of the loan actually in the dude to pay back the best or the reduced amount long people seem to have this idea as it's typical basis the idea that waving off part of alone makes farmers feed more comfortable being addressed how long have not shown substantial effects on easing the agrarian distress for more more holistic view. Let's see how long we affect the different stakeholders in ward first. Let's look at the government on a political trend known waivers might be favorable before the populist electoral gains for the government but it throws bad to the fiscal discipline and fed culture of the economy into thousand sixteen entrepreneurs opt opt for llanview scheme that offered fourteen passing or benefits bottle be spent on the scheme giving achieve. Just voting of benefit is a board aditi. Similarly in rajastan giving to achieve levin benefits is also in spending thousands of rose unless effective policy policy leaves less for much more effective ones like allegation or infrastructure which later effect unbans is more indirect than that as these variables are compensated by the state government executives however home the credit card disrupted than reported in the past that there is usually leeann increasing n._p._r.'s after lawn was due to modern has ads for instance when upn announced don't in two thousand eight and cultural n._b._a.'s what close to two percent of the entire at the loan book but between two thousand nine and two thousand seventeen they have grown nearly six percent this this is more damaging to the government because again most famous loan are held in the banks banks also tend to restrict cleansing to farmers after weaver's denounce since they lose out on the interest payments and might lead the band to categorizing these loans as bad bones in the end. Uh of the all the damage is done do lawn vela's head farmers. The answer is quite disputed. Bills cover only formal lending hence known. I do not agree to any v._a. Benefits to small and moslem farmers who housley depend on informal bottling this is due to the fact that only fifteen percent thank the small families have access to institutional credit which are covered in these way was there are several other unintended consequences fun instance vich farmers do balloons even if there is no need for it in the hope of the next loan waiver scheme this will impact the farmers wet genuinely need of loans. What's bigger families are the main body was from from banks and other formula institutes and because of past loan waivers former lenders have reduced the traffic flock to the marginal farmers lending them to approach leading them to approach informal lenders the biggest reason as to why on our criticize is that they do do not adjust the actual problem which is much more complex and rooted and cannot be sold with a single stroke of vehicles why it does not worthy to lend a hand to farmers in that the solution cannot be permanent when does not take into account what is causing the dead in the first place in a sense it is like increasing tap flow to fill in the hole a real solution in water a great deal of the forms agricultural sector instead politicians get ovarian with history quick fixes that doing more damage than help as mentioned above lack of funds allocated waivers can be channelled towards constructive projects knicks dynamic benefit transfers to almost white light the light to bundle scheme delon ghana is one shot down solution built canals and reservoirs is to deal with droughts when needed conducting seminars about the user protective integration techniques encouraging farmers to adopt aquaculture and other type. It's a farming instead of relying solely on staple crops investing agricultural. I didn't enter morning. Organic farming fueled alternatives. They're more light can be said and more money can be bumping agreed in the state requires consistent and long-term reforms and efforts that we will as an initiative appeals dubious. I just shot them. Solution for a long-term malady mazen investment in the advocate tal sector is the need of the which may lead to increased mechanization improved <music> access to marketplace where the famous beck event housing and transportation facilities this would enhance the profitability of the farmers and would stand in their capacity to weather weather rough times such as routes and natural calamities. Why did we was definitely a relief to some families. Our focus should be on solutions that that fight indebtness by making farming profitable instead of writing way debts it says and vince and upbeat <music> thank you. 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