The Hindu Business Line : Credit Policy Review

The article, "Mid-Year Review of the Annual Credit Policy — Managing inflation, encouraging growth" (Business Line, October 26) raises hopes and inspires confidence. Though the rising oil prices and import bills are a matter of concern, we have learnt to live with it. And it gives energy production that much-needed impetus.

A modified bank lending system fairer to farmers and the small-scale sector is welcome. With good rains and better growth of the farm sector, the moves in the Credit Policy Review could contribute to both higher growth rate and control inflation. And the dreams of the Finance Minister, Mr P. Chidambaram, of an investment boom and buoyant growth could actually come true.

A. Jacob Sahayam

Thiruvananthapuram

* * *

This is with reference to the editorial, `RBI's Price Concerns' (Business Line, October 26): The Reserve Bank of India Governor, Dr Y. V. Reddy, has rightly advised the nationalised banks to extend credit to the farmers and also the small-scale sector.

But now it is up to the bank to follow his advice and stimulate the growth of the agricultural sector.

Till now, our banks have not been fair to farmers. For instance, the farmers of Bellary district are experts at onion cultivation. But, today, whenever onions are in short supply, we need to have them imported from Pakistan.

This is because, there is no system in place to ensure a year-round supply of onions to the nation. Again, it all boils down to the unfair credit practice when it comes to lending in the farm sector. The RBI should instruct nationalised banks to disburse loans at 5 per cent interest to farmers and encourage development of agriculture.

Jacquelene Netto

Chennai

Letters to the editor and contributions can be sent by e-mail to: bleditor@thehindu.co.in

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Post-office makeover

It is introspection time for Congress in J&K

Taxing problems

Reforming IMF/World Bank — G-20's narrow but understandable agenda

Credit Policy Review