Rural distress and government policy

National Sample Survey data in Income, Expenditure and Productive Assests of Farmer Households, 2003 showed that 96 per cent of farmer households are in deficit and half of the households are indebted. Debt waiver can only be welcomed in such a situation. Once indebted, marginal and small farmers will hardly be in a position to repay the debt even if it is from institutional sources where interest rates are much lower than the rates charged by private moneylenders. (Letters)