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Resource centre on India's rural distress
 
 

Are Loan Waivers a Panacea for Rural Distress? -Nilanjan Banik

-Economic and Political Weekly

Small and marginal farmers are not the real beneficiaries of loan waivers. In the year following loan waivers, small farmers lose out on three counts: lower access to formal loans, falling agricultural revenue because of higher informal loan costs, and falling agricultural productivity. Instead, supply-side interventions could make a real difference in farmers’ lives as a long-term alternative to loan waivers.

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