 "Urjit Patel")
Farm debt waivers eventually push up the interest rate in the entire economy and crowd out private sector entities from accessing finite resources of market funds, Reserve Bank of India (RBI) Governor Urjit Patel said on Thursday.
“There is a gamut of issues that have intensified the anguish of our farmers. In this context, farm loan waivers have brought forward the urgency of designing lasting solutions to the structural malaise that affects Indian agriculture,” Patel said in a seminar on agricultural debt waivers.
However, the waivers lead to “concerns about the macroeconomic and financial implications, how long they will persist in impacting
