Question

Which of the following is drawback of loan waiver ?

1. It covers only a tiny fraction of farmers.
2. It gives only partial relief.
3. Strikes the root of credit culture.
4. It excludes agricultural laborer who is even weaker than cultivators in bearing consequences of distress.
5. All of the above

Answer 1

4. It excludes agricultural laborer who is even weaker than cultivators in bearing consequences of distress. – is the correct answer.

The amount of these short term agricultural loans can weaker the labor because farmers cannot cover the investments with these loans and the total cost of inputs exceeds the labor cost.