{"id":27541,"date":"2018-10-23T14:40:24","date_gmt":"2018-10-23T09:10:24","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=27541"},"modified":"2018-10-23T14:40:24","modified_gmt":"2018-10-23T09:10:24","slug":"solutions-beyond-farm-loan-waivers","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/solutions-beyond-farm-loan-waivers\/","title":{"rendered":"Solutions beyond farm loan waivers"},"content":{"rendered":"<p><a href=\"https:\/\/www.livemint.com\/Opinion\/28FyhnOCm4cFP1PCcJLYsN\/Solutions-beyond-farm-loan-waivers.html\">Solutions beyond farm loan waivers<\/a><\/p>\n<p><strong><u>Article<\/u><\/strong>:<\/p>\n<ol>\n<li>Nilanjan and Manorma, a Professor of Economics has discussed about the in-effectiveness of loan waiver schemes.<\/li>\n<\/ol>\n<p><strong><u>Important Analysis:<\/u><\/strong><\/p>\n<ol start=\"2\">\n<li>Research conducted by Tata Trust in Rajasthan has revealed that loan waiver schemes are extremely expensive with limited impact.<\/li>\n<li><u>Issues associated with loan waiver scheme:<\/u><\/li>\n<\/ol>\n<ul>\n<li>Scheme is available only to 15 % of marginal farmers who have taken formal loans.<\/li>\n<li>Marginally poor farmers without any formal loans are neglected.<\/li>\n<li>After loan waiver scheme, banks reduce credit support to small farmers during next loan cycle.<\/li>\n<li>Small farmers use money saved from loan waiver for domestic consumption instead of agriculture. Leading to low agriculture productivity.<\/li>\n<li>Very less impact against the money spent. Which further curtails the limit of allocated credit in the subsequent year<\/li>\n<\/ul>\n<ol start=\"4\">\n<li><u>Challenges faced by the poor farmers:<\/u><\/li>\n<\/ol>\n<ul>\n<li>Due to unavailability to formal loans, they are forced to attract informal loans which is costly.<\/li>\n<li>Inadequate storage facility discourages small farmers to grow perishable items on which profit is more.<\/li>\n<li>And even if they do grow, they often sell their produce to the person from whom they may have taken the loan.<\/li>\n<\/ul>\n<ol start=\"5\">\n<li><u>Report has recommended better remedies for farm distress<\/u><\/li>\n<\/ol>\n<ul>\n<li>Spend money on building canals and warehouses<\/li>\n<li>Advanced storage facility \u2013 will reduce waste of perishable produce.<\/li>\n<li>Efficient E-Markets \u2013 Could ensure better prices to farmers.<\/li>\n<li>Rural Electrification.<\/li>\n<\/ul>\n<ol start=\"6\">\n<li>Though, there are e-Markets and regulated markets to control the farm distress, some issues are still associated with regulated markets such as:<\/li>\n<\/ol>\n<ul>\n<li>Lower and fragmented market size.<\/li>\n<li>Lack of price incentive due to presence of buyer\u2019s cartel.<\/li>\n<li>Lack of information on product standard.<\/li>\n<\/ul>\n<ol start=\"7\">\n<li><u>Benefits of e-Mandi:<\/u><\/li>\n<\/ol>\n<ul>\n<li>Provide direct market access to Farmers by excluding middleman.<\/li>\n<li>Symmetry in data would provide better price mechanism to poor farmers.<\/li>\n<li>e-Mandis has benefited Rajasthan<\/li>\n<\/ul>\n","protected":false},"excerpt":{"rendered":"<p>Solutions beyond farm loan waivers Article: Nilanjan and Manorma, a Professor of Economics has discussed about the in-effectiveness of loan waiver schemes. Important Analysis: Research conducted by Tata Trust in Rajasthan has revealed that loan waiver schemes are extremely expensive with limited impact. Issues associated with loan waiver scheme: Scheme is available only to 15&hellip; <a class=\"more-link\" href=\"https:\/\/forumias.com\/blog\/solutions-beyond-farm-loan-waivers\/\">Continue reading <span class=\"screen-reader-text\">Solutions beyond farm loan waivers<\/span><\/a><\/p>\n","protected":false},"author":61,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[555],"tags":[],"class_list":["post-27541","post","type-post","status-publish","format-standard","hentry","category-test-1","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704890723},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27541","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/61"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=27541"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/27541\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=27541"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=27541"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=27541"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}