Farm loan waivers should not be the part of plebiscite promises. Former Reserve Bank of India governor Raghuram Rajan, an international academician, an Indian economist, who is the Katherine DusakMillerdistinguished professor of finance at the University of Chicago Booth School of Business. He was the 23rd governor of RBI for 3 years.
Raghuram Rajan said that Poll don’t have to promise about loan waiving. It is not the solution to the long-festering distress in the sector. Farm loan waivers and an increase in the minimum support price (MSP) is part of political parties. Raghuram meets 12 economists and denied the claim of loan waivers and a better MSP. He said that it harms the state’s economy.
The economists prescribed improving access to land for development through computerized land mapping. Government guaranteed to title the creation of land banks and uses of auctions for land acquisition, they said for the long run they should think above how to make agriculture vibrant itself. Therefore it is highly questionable for fiscal transfers.
He writes a letter to the Election Commission. He said to Election commission it should not be in poll promises for a healthy economy. Policies must make agriculture vibrant but loan waiving is not a solution as it creates many problems for the fiscal of the state.
Therefore there should be a conversation or debate on this topic for the benefit of farmers.