The Author has been very forthright in pointing out the lapses of the Nair committee's recommendations in extending finance to the agricultural sector.Being a commercial banker, Nair would have felt agricultural financing is not viable and given a chance banks should avoid it.This game of avoiding agriculture has been going on since the implementation of reforms and the effect is felt in the reduced contribution of agriculture to the GDP.Even the investments in agriculture have been on the decline since last two decades and agriculture enjoys only lip sysmpathy even from political class and bureaucracy.The damage to agriculture has already been inflicted and even NABARD cannot claim to have given a boost to the development of agriculture since it has been set up in 1982.The farmers have also no choice but to give up farming and seek shelter elsewhere to eke out some subsistence allowance elsewhere.Agriculture has lost its importance in the economy and this has been a cause for inflation.
from: Dr.T.V.Gopalakrishna
( This is in response to an Article on Farm Credit appeared in Business Line.This appeared in Business Line dated 12/06/72).
