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The mega agricultural loan waiver of Rs 60,000 crore by the Finance Minister, though welcomed by the farmers, has many unexplained areas. First of all he does not specify whether these loans are secured or not. But one can reasonably assume that even secured loans will be waived. This is not fair as banks nowadays use some gimmick or the other to meet the agriculture credit target. They classify all gold loans granted under agricultural credit. A rubber stamp “This gold loan is granted for agricultural purpose” is affixed on all gold loans irrespective of the purpose for which it is granted.

When loan waiver is granted, the outstanding gold loans also will be waived. This is a paradox. Gold loans granted without proper land holding data, should be excluded from the waiver.

C. S. Narayanan Ottapalam

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