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...

Public uproar over 20 suicides in two months has forced the Andhra Pradesh government to act to regulate micro-finance institutions. On October 14, the state government brought an ordinance making it compulsory for MFIs to register themselves, declare the effective rate of interest they charge, ensure that no security is sought for loans and no coercion is used for recovery. Non-compliance will be punished with a three-year prison term and a...

Apni kheti, apna khaad / Apna beej, apna swaad (Our own farm, our own fertiliser / Our own seeds, our own taste) -- Prakash Singh Raghuvanshi. A farmer from Tandia village in Varanasi has a solution to India's burgeoning food crisis. In a land where poverty, hunger, malnutrition and farmer suicides are rampant, Prakash Singh Raghuvanshi's innovation could work wonders. He has single-handedly developed a number of high yielding, nutritious...

Demanding a uniform guideline for acquisition of their land, a farmers' convention on Sunday accused the government of failing in providing an appropriate policy to get peasants out of debt-trap. "It is the government which is responsible for suicides by farmers due to debt... successive governments have miserably failed in framing a proper policy to favour peasants," All India Kisan Coordination Committee chief and former MP Bhupinder Singh Mann said...

The government has launched a relief package, which will directly address the problems of the coffee growers, especially the small growers. Commerce and industry minister today flagged off the implementation of the `Coffee Debt Relief Package, 2010' by distributing the first batch of certificates to those small coffee growers whose loans have been waived under this package. This is the first time that the Government of India has come forward with...