Opinion | Debt isn’t killing India’s farmers
Given the detrimental impact on credit discipline, not to mention the hole farm loan waivers are going to blow in state budgets, politicians would be wise to rethink their plans
It’s election season in India and the money is flowing. Governments in many states have started implementing farm loan waivers in an effort to buy their loyalty. The argument—widely accepted by politicians and journalists, the demographic groups with the least fiscal instinct—is that India’s farmers are buckling under the weight of their debts and rural suicides are spiking dangerously. Rural households are desperate for relief.