INDIAN ECONOMY: CORPORATE VERSUS AGRICULTURAL FARMERS — BY ER. KAPIL ARORA
Around 70% of total NPA in India belongs to Corporate Sector, whereas despite being primarily Agricultural Country, the NPA due to Agricultural is around 10% (1 lakh Crore) only.
Further against 70% (7 lakh Crores) NPA which belongs to Corporate Sector, Banks do not have Secured Assets (Securities) more than 20% (2 lakh Crores) whereas in Agricultural NPAs, Banks have adequate Agricultural Land/Cattle to recover almost all the loans.
Now let’s come to NPA w.r.t Population (number of persons involved in causing NPAs)
The number of people involved in NPA in Corporate Sector are only few thousands only, out of which only top 50 Companies owes 50% of total NPA.
In Agricultural Sector, the number of people involved in 10% are in lakhs i.e. the amount taken by Farmers May vary from few thousands to few lakhs only. AND NOT EVEN A SINGLE PERSON FLEW AWAY FROM INDIA TILL DATE because farmers are not thieves but most of such Corporate are.
NOW THINK ABOUT IT, WHO HAS DONE MAXIMUM DAMAGE TO INDIAN ECONOMY, CORPORATE OR FARMERS?
WHAT IS THE MAIN REASON BEHIND BANK’S FAILURE, LENDING TO CORPORATE OR AGRICULTURAL SECTOR?
WHO IS RESPONSIBLE FOR FUNDING CORPORATES MORE THAN SECURITIES MORTGAGED BY BANKS, GOVT. POLICIES OR FARMERS?
Despite successful Cooperative Societies like IFFCO (Worlds Number one Indian Society), AMUL, VERKA & large number of such Societies at local level, why Govt. is trying to handover the future of Farmers in the hands of Private Corporate Sector?
Can anyone provide any example where Corporate have given benefits/proper price to Farmers till date?
WHY CORPORATE BUT NOT COOPERATIVE SOCIETIES FOR FARMERS AT REGION/BELT LEVEL
From Gobar to Milk, every thing can make profits & play major role in growth of Indian Economy but we are just wasting natural resources.
Just like lending done to Corporate, give financial support to Cooperative Societies in erecting Cold Stores, Gobar Gas Plant, Dry Gobar Pallets, Chemical Fertilizers, Irrigation equipments, Food Parks, Factories, transportation system, etc. etc. In just next 5-10 years, one may witness major reforms in Agricultural Sector.
It will not only increase the income of farmers by manifolds but also create opportunity of increase in employment by manifolds, just help in growth of Indian Economy.
Er. Kapil Arora
President, Council of Engineers
General Secretary, Valuers Association.