- With the marginal and small farmers of the country getting a raw deal regarding the waivers of farm loans, the National Bank for Agriculture and Rural Development (NABARD) is planning to create a farmer distress index (FDI) with the aim of tracking, identifying, and supporting the real distressed and needy farmers of India.
- Depending on the distress level, the financial institutions and the government can decide on an appropriate support package instead of handing out a distress package to all the farmers as is the current practice.
- This index won’t be uniform across the nation as it will be changing depending upon the place’s stress levels.
- This index will help the government departments, financial sector, and insurance companies.
- The distress of a farmer is generally calculated by the extent of damage to their crops.
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