Better ways to tackle farm distress than loan waivers: NITI Aayog

UP, Maharashtra govt's has announced farm loan waivers of Rs 1.3 lakh crore or 0.8% of GDP in FY18

NITI Aayog member Ramesh Chand on Friday said there were more effective ways to deal with problems of farmers than loan waivers, which benefit only a fraction of agriculturists. States, including Uttar Pradesh and Maharashtra have announced farm loan waivers adding up to Rs 1.3 lakh crore or 0.8 per cent of GDP this financial year.

“If you look at institutional loan, then there is a very tiny percentage of farmers who take loan. NITI Aayog has taken this position. There are much more effective ways to address problems of farmers rather than going for this loan waiver... very small fraction of farmers get benefit of loan waiver,” Chand said.