Only 50% farmers benefited from farm loan waivers, finds study
The HinduOnly about half of the intended beneficiaries of farm loan waivers announced by nine States since 2014, have actually received debt write-offs, as per a study by State Bank of India’s researchers. By contrast, farm loan waivers implemented by Chhattisgarh in 2018 and Maharashtra in 2020, were received by 100% and 91% of the eligible farmers, respectively. “Since 2014, out of approximately 3.7 crore eligible farmers, only around 50% of the farmers received the amount of loan waiver till March 2022… Despite much hype and political patronage, Farm Loan waivers by States have failed to bring respite to intended subjects, sabotaging credit discipline in select geographies and making Banks and financial institutions wary of further lending,” the SBI report noted, terming it a ‘self goal’ inflicted by the State on its subjects. “Of the total accounts eligible for farm loan waiver, most of the accounts were in standard category, begging a question whose interest rampant waivers actually serve,” it noted.