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The mystery of the boom in farm credit

The spurt in farm credit by commercial banks, including regional rural banks, has interestingly not led to any let-up in distress in the agrarian economy—a mystery that continues to baffle academics, policy planners and, more recently, bankers Capital Calculus | Anil Padmanabhan Last week, a clutch of bankers and policy wonks gathered in Bangalore to review recent trends in farm credit. On the face of it, credit to the farm sector is on an unprecedented spiral and, hence, logically should not be cause for worry. That is precisely the point. The conclave was convened to attempt a candid review of some disconcerting trends in farm credit, which could potentially point […]

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