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Wake up, smell the leakage -Ashok Gulati & Prerna Terway

-The Indian Express Substantial number of interest subvention scheme loans are diverted to non-agricultural uses. Government must switch to an income-support subsidy regime The Union budget for 2016-17 has provisioned Rs 15,000 crore on account of interest subvention for short-term agricultural credit, up by Rs 2,000 crore over the revised estimate for FY16. The mere shifting of this line item from the department of financial services to the department of agriculture...

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Is agriculture a business? -Harish Damodaran

-The Indian Express Yes, except that farmers suffer rules other businessmen never encounter Agriculture is said to be India’s largest private-sector enterprise, engaging nearly 119 million farmers (“cultivators”) and another 144 million landless labourers, as per the 2011 Census. It is even considered the most respectable business, going by the oft-quoted slogan “uttam kheti, madhyam vyapar, kanishtha naukri (supreme is farming, mediocre is trade and most lowly is service)”. But the exalted...

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Golden yields - Focusing on agriculture alone will not improve farm incomes -Shubhashis Gangopadhyay

-The Telegraph The recent budget talked about the government's plan to double farm incomes in the next five years. This will be done through investments in rural infrastructure, especially irrigation. About 50 per cent of land under foodgrain production in India is irrigated. This means that half of the foodgrain producing land in India faces weather uncertainties and, hence, those working on them face annual (seasonal) variations in income. These variations...

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Waterless in Marathwada: Farm crisis is extra hard on women -Kavitha Iyer

-The Indian Express In Marathwada’s worst-hit districts of Beed, Osmanabad and Latur, households now have an uncompromising priority list of expenses as an economy hit by years of near-total crop failure goes into a tailspin. Beed/ Osmanabad: About 65 kilometres from the cracked earth that was once their source of income, Mandakini Mujmule, in her forties, and her daughter Anita, 21, have spent 16 days in Beed city’s government hospital. Mandakini has...

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Why microfinance is fading out -M Sureshbabu and Arun Kumar Gopalaswamy

-The Hindu Business Line MFIs are unable to address the needs of self-help groups. They have been hit by the falling growth of SHGs There has been a long-standing debate on the ability and effectiveness of the formal banking system as a vehicle for financial inclusion. The thrust has been to increase the number of small banks, as they play a very important role in the supply of credit to small business...

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