‘It may also help defend the financial health of banks saddled with bad loans’
Prof. Jayati Ghosh of Jawaharlal Nehru University has mooted a win-win proposal to bail out debt-ridden ryots on the only hand and defend the economic fitness of banks as political parties vie with each other in saying farm debt waiver in several States with elections next door
“Setting up of debt comfort commission is the manner out to take a look at each case of debt-ridden farmer case by means of case and provide suitable alleviation to ryots concerned with genuine debt problem and on the identical time make sure that banks aren’t overburdened with insufferable bad loans,” stated Prof. Jayati Ghosh, who had went deep into the reasons of debt-ridden farmers taking the acute step of finishing their lives in the united Andhra Pradesh.
“This would silence the critics of the debt waiver scheme raising a hue and cry over the financial burden associated with periodic loan waiver at the monetary fitness of banks,” she said here on Sunday even as listening to moral hazard associated with routine loan waiver resulting in slippages in existing loan payments through farmers in anticipation of write-offs.
Setting the farmers agenda in advance of polls for a honest deal to ryots stuck in a debt trap at a seminar organised by means of the CPI(M)-led All India Kisan Sabha right here, she stated the Centre has to offer each farmer crossing the age of 60 years a monthly pension of at least ₹four,000 to ensure minimum social safety within the evening in their lives.
She advised imposition of one% wealth tax and 20% inheritance tax to deal with the deep-rooted agriculture crisis and bailout the debt-ridden farmers who also took loans for fitness and schooling prices.
Backing the demand for adding 50% of value of manufacturing which blanketed amount of capital and the hire at the land mooted by using mentioned agriculture scientist M.S. Swaminathan, she, felt any huge a hike could no longer have that means while public procurement agencies left farmers to fend for themselves in opposition to opposed marketplace forces.
She said that money transfer to farmers instead of farm subsidies changed into not the first-class answer as this would advantage most effective a minuscule segment of farmers with clean land title leaving inside the lurch tenant farmers who accounted for a majority of growers on the grass-roots level.
A superb alternate for the better for the reason that she came out with a voluminous document changed into the implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme(MG-NREGS), she said and wanted the salaried employment scheme to supply organic fertilisers and insecticides for the benefit of farmers. The self-styled cow protectors, did a disservice to the motive of farmers, especially in drought-prone areas, by destroying the cattle economic system, she stated.
It turned into a double blow for farmers because the unfriendly exam coverage allowed import of less expensive farm produce from overseas and disallowed export of farm deliver with higher fee distant places.