Issue
Context:
About:
Background:
Analysis
Why distress:
The cobweb model or cobweb theory is an economic model that explains why prices might be subject to periodic fluctuations in certain types of markets. It describes cyclical supply and demand in a market where the amount produced must be chosen before prices are observed. |
How farm loan waiver schemes impact the Indian economy:
Efficacy of Loan Waiver Programs:
Analysing UP Rin Maafi Yojana
Economic fallout of loan waiver
Political fallout
Agricultural sector and compliance with priority sector norms
Issues persist even after the Loan waiver:
Way forward:
Learning Aid
Practice Question:
The RBI has time and again flagged the issue of farm loan waivers straining fiscal position of states. With UDAY scheme already in doldrums, do you think farm loan waiver schemes would end up doing more fiscal harm than political/short term good? Critically evaluate the whole mechanism and ideology behind these schemes and suggest way forward.
Verifying, please be patient.