Photo: PTIFulfilling his poll promise, chief minister Yogi Adityanath has announced a farm loan waiver scheme in Uttar Pradesh. Also, as is the case with any loan waiver, those who paid back their loans despite facing hardships would end up as losers. An additional squeeze on the state budget due to the farm loan waiver could widen this gap. Farm loan waivers, like the one announced in Uttar Pradesh, would provide limited relief where none was available. However, it is also a fact that farm loan waivers are at best a palliative for India’s crisis-ridden agrarian economy.

Source: Mint April 09, 2017 22:30 UTC