Big news for the financial sector, markets and the economy as a whole could be coming! The Modi government is working on plans to waive Rs 1 lakh cr worth of farm loans, sources have revealed. In this big breaking news, Zee Business Executive Editor Swati Khandelwal said the government might split this relief package into tranches. The first tranche could see a Rs 25000 cr loan waiver.
Khandelwal said the Modi Government has taken various measures to help farmers and this growth is going to be a great relief to them. The move confirms “very quickly,” she said adding it could come next week. In a double whammy, farmers affect by the coronavirus pandemic. They are now facing one of the worst locust issues, which causes major crop destruction. It estimates that locusts may have destroyed a huge 15 per cent or more of the agricultural produce.
Zee Business Managing Editor Anil Singhvi said this was great news for farmers. But it would have an impact on the banking industry. The purpose of this move is to help farmers. Khandelwal said adding that the wholesale grain prices have dropped by more than 30-40 per cent. He added that the move is likely to have a negative impact. It is in the banking sector, which the farmers have been lending. The banks’ financials will suffer, she said.