Question

loans should be written off in case farmers find it difficult to pay off? Explain this in 20 sentence​

Answer 1

Answer:

When debts are written off, they are removed as assets from the balance sheet because the company does not expect to recover payment. In contrast, when a bad debt is written down, some of the bad debt value remains as an asset because the company expects to recover it.

Answer 2

Yes, loans should be written off in case farmers find it difficult to pay off, but there are some problems related to it

Explanation:

• In my opinion yes it should be written off. However, it has disadvantage too that those farmer who are in position to pay but reluctant to pay as they know at last government will write off will lead to a loss for the government.
• But from the perspective of a good planner we must always consider our reasons not to make money but to protect our society. An agricultural farmer is unable to repay the loan if not enough income  is got from his agricultural produce. In a scenario like this, where the loan is not paid off, farmers will slip into a debt trap.
• However, it must be noted that every action has some problems with it. This should be written off, yes, but this has a downside too, though, that those farmers who should pay but are do not pay because they realise at the end of the day, the govt will "write off"  otherwise it would  lead to a loss for the govt.
• A number of credible studies have shown the farmers turn "deliberate" defaulters in the expectation of sooner or later waiver of their loans. Farmers, defaulting in anticipation of waivers, lose out on other benefits too such as compulsory coverage of farm insurance scheme on existng loans as they were sub-standard.
• Waivers for farm loans have little impact in addressing the agricultural crisis, but there is a small segment of farmers who get a brief relief, nevertheless the after-effects of loan waivers impacts the sector & the economy, and is "detrimental" to the "fiscal balance" in the medium run

To know more

Counter view on farm loan waiver is no solution for Indian agricultural

https://brainly.in/question/2299839