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Higher prices could lower clamour for farm loan waivers

A waiver could, at best, give a temporary respite, at the cost of the exchequer

Sanjeeb Mukherjee  |  New Delhi 

Falling prices had put farmers in various parts of the country on the warpath for several months. In some cases, prices of commodities have even fallen below the basic cost of production.  Increased supplies pulling down demand and causing a price crash is not new. But as the Economic Survey Part-II, released in August, pointed out, the impact in 2017 was greater due to a variety of factors that included imperfect markets. The slump had ignited calls for waivers of farm loans and five state governments had announced waivers in some form or the other. The total ...

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First Published: Mon, September 04 2017. 01:34 IST
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