The microfinance bubble has burst. The AP government ordinance, the AP oppositionfs campaign asking borrowers not to repay and the sheer public hostility towards MFIs . all these have put the brakes on MFI activities for now. We need to rethink the role of MFIs in the rural economy . In order to do so, we must first grasp some of the myths on which the MFI sector has rested...

The NAC proposals for the food security bill are narrow and lack in vision. What is needed is a comprehensive bill with universalisation of PDS and a focus on child malnutrition.   There was much excitement when food security became one of the issues in the manifestos of most major political parties in the run up to the 2009 General Elections. With burgeoning food stocks, double-digit food inflation, stagnant malnutrition rates, declining...

The poster boy of microfinance is now seeking some anonymity. In Andhra Pradesh, the epicentre of the worst crisis faced by microfinance in India, SKS Microfinance is playing down its identity and going into preservation mode. At its modest office in a residential colony in Warangal district, India’s largest microfinance company has taken down its board. At its head office in upmarket Begumpet in Hyderabad, it hung a cloth mesh...

According to the National Crime Records Bureau, since 2003, one Indian farmer has committed suicide every 30 minutes. In 2008, 16,196 farmers took their own lives, bringing the total number of farmer suicides in India between 1997 and 2008 to 199,132. (Significantly, P. Sainath is of the opinion that like all government data, these figures too are unreliable. For when women farmhands kill themselves, their deaths are not enlisted as...

The disastrous effect of the state throwing up its hands and retreating is most starkly visible in agriculture . Remember: agriculture involves 70 per cent of the country's population , generates about 56 per cent of national income, 64 per cent of total expenditure and about one third of total savings. So, any neglect translates into gigantic costs. And the central crisis in agriculture — production barely matching a depressed...