India’s rural landless dependent on wage earnings did better than landed farmers for whom rising wages in a record crop year pushed up costs, while falling crop prices took a toll on earnings, said an HSBC research note on rural distress released on Tuesday.
Since 2014, farmers’ real debt has been rising at a rate faster than their real incomes, the report said, adding that the sustained fall in headline inflation over the last few years had increased farmers’ real indebtedness. This has led to a growing clamour for loan waivers by farmers although such waivers spoil the credit culture and erode macro-stability, as states’ quality of spending falls, it said. Read More
Since 2014, farmers’ real debt has been rising at a rate faster than their real incomes, the report said, adding that the sustained fall in headline inflation over the last few years had increased farmers’ real indebtedness. This has led to a growing clamour for loan waivers by farmers although such waivers spoil the credit culture and erode macro-stability, as states’ quality of spending falls, it said. Read More