Tuesday, June 20, 2017

Farm loan waiver ....

All this talk on waiving loans of farmer community is do misguided.

There's a long list of steps being doing explicitly for farming community, not farmers.

Firms that are into farming area enjoy subsidy. Fertilizer, seeds, tractor, they all get subsidy.

Farmers themselves get loans for buying tractors, seeds, ...

Problem is always price drop....
Prices are function of markets... So market failure is the problem..

Governments, by definition cannot fix this market failure problem by activist intervention..

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