Even as the media celebrate the Mercedes Benz deal in the Marathwada region as a sign of “rural resurgence,” the latest data show that 17,368 farmers killed themselves in the year of the “resurgence.” When businessmen from Aurangabad in the backward Marathwada region bought 150 Mercedes Benz luxury cars worth Rs. 65 crore at one go in October, it grabbed media attention. The top public sector bank, State Bank of India,...

Says the bank has also stopped refinancing farm loans Says no NABARD official has visited his office in a year Criticises Milma for deposits in a private bank Cooperation Minister G. Sudhakaran said here on Monday that the National Bank for Agriculture and Rural Development (NABARD) had not been taking the initiative to hold discussions on implementing the Vaidyanathan committee report on cooperative sector reforms and had stopped refinancing farm loans in the...

Fearing a default from Andhra Pradesh-based microfinance institutions (MFIs), whose cash flows have been disrupted by new laws, lenders have asked RBI to ensure stability by bringing the sector under its purview. In a meeting called by the Reserve Bank to discuss funding of MFIs, it asked banks whether the institutions were repaying loans on time and if the end-borrower was suffering because of the Credit crunch faced by them. RBI...

IT WAS a windfall five years ago that taught Panchali Satyavva the power of a lie. It happened one Monday afternoon in Someshwar village of Nizamabad district in Andhra Pradesh. It was raining in sheets and she had just placed a bucket under the steady trickle of water from the roof of her hut. Two men were at her door, holding umbrellas and offering her an unsolicited Rs. 5,000. They...

Retail giants pushing the European Union-India free trade deal promise consumers a "new and dynamic retail experience" but ignore the fate of India’s "mom-and-pop" stores and some 40 million people they employ. Four years in the making, the EU-India Bilateral Trade and Investment Agreement made serious headway during Indian Prime Minister Manmohan Singh’s visit to Brussels Dec. 10 and is due to be signed and sealed early 2011. But the negotiations have...