Letters to the editor dated November 30, 2020

The new farm laws are anti-farmer, notwithstanding Prime Minister Narendra Modi’s spirited defence of them. It is a fallacy to say that these laws in their present form will benefit farmers. The benefits listed by Modi in his speech don’t really stand up to scrutiny. Farmers seem to be determined to protect their interests from being subordinated to those of big commercial entities.

There is no guarantee that corporates won’t exploit the vulnerable farmers. The government has a social responsibility to ensure that the farmers get a fair price for their produce.

The entry of big private players into the agricultural market will eventually lead to the closure of the government-regulated mandis. The government must see reason and repeal the anti-farmer laws. If need be, it can frame new farmer-friendly laws in consultation with the farmers to fulfil the Prime Minister’s promise of doubling farm incomes.

Maruthancode (TN)

That the Indian economy had fared better in the second quarter of the current financial year with the pace of contraction easing to 7.5 percent compared to an unprecedented decline of 23.9 percent in the first quarter is heartening news. However, one should not rush to the conclusion that the worst is over and the economy is now firmly on the path to sustained recovery. Steady improvement in economic activities with the easing of restrictions, ramping up of production to satiate the pent-up and festival season-led demand and good performance of the agriculture sector are the major factors that helped the economy.

While private consumption has improved, the spending of the Union Government has fallen significantly. It is time the Centre loosened its purse strings and announced further fiscal stimulus measures to revive demand.

Sholavandan (TN)

With reference to the news report ‘MPC likely to keep rates steady’ (November 30), the monetary policy rates and the stance of the committee matter a lot to propel economic activities. With the rise in productive activities and corrections in the supply chain of goods and services, inflation will decelerate.

Given the ample liquidity in the banking system, a cut in the repo rate followed by instant transmission of the rates, the demand for capital to create investment will rise.

The growth in credit disbursements by the banking sector is vital to reduce the level of non-performing loans and to drastically improve the returns to sustain the financial health of the banks. The ease in the flow of cash through increased consumption and production needs to become robust to enable the consumers of bank credit to service the borrowing. A rate-cut sans a cut in the deposit rates even though makes a negative impact on the bank's returns instantly, yet an aggressive reduction in non-performing loans and a continuous rise in low-cost business will strengthen the soundness of the banks.

Changanacherry (Kerala)

With reference to the Editorial, ‘Plugging GST leakages’, there are a plethora of areas where leakages and seepages exist which requires a holistic approach with coordination between various agencies. There has to be a concerted effort in achieving almost zero-level of prevention of malpractices that flourish.

Fake invoices to claim ITC input credit is a silent mischief maker. Fake e-way bills is yet another area of concern.

To redress the malady, the registration process must be strengthened and due diligence parameters spelt out which can go a long way to arrest such malpractices. Even personnel engaged in registration work like CAs and Tax Auditors can lend a helping hand.

The GST software also needs to play a pivotal role in attacking problems and in their prevention.

Bengaluru

LETTERS TO THE EDITOR Send your letters by email to bleditor@thehindu.co.in or by post to ‘Letters to the Editor’, The Hindu Business Line, Kasturi Buildings, 859-860, Anna Salai, Chennai 600002.