A blinkered report
The trouble with the RV Gupta committee report on agricultural credit is that it assumes that agriculture is just one more sector to which banks lend, little different from any other activity. But there are several reasons why lending to agriculture is special. Bank credit is essential not only for agricultural productivity, but also for rescuing rural society from the clutches of the money lender.
The right approach
Opening up of the insurance sector has been a subject of much debate ever since India ventured into liberalising its economy. The subject drew greater attention with the tabling of the Malhotra Committee Report and the consequent announcement of a token freeing of health insurance in the 1997-98 budget by Chidambaram. But concerted opposition from vested interests, particularly the trade unions, have effectively stalled reforms.
Costly appeasement of Akali wheat lobby
The minimum support price (MSP) for wheat has been fixed at Rs 510 per quintal, up from Rs 475 per quintal. Why this hike? The question is addressed to the prime minister. The commission on agricultural costs and prices (CACP) had recommended Rs 455 per quintal; and the food ministry had asked for Rs 495 per quintal in the face of opposition from the finance ministry.
Elgi Tyres: Better perspective
The Elgi Tyres stock has begun to discount the expected results for 1997-98, having appreciated by 45 per cent from February 1998 to Rs 400 at present. The stock had peaked in the middle of the last year at a price of Rs 500 only to be hit by the negative sentiment in the automotive sector later that year for heavy vehicles, to settle at a low of Rs 277 in early 1998.
The Index
Sovereign debt -- Reports suggest that the finance ministry, for the third consecutive year, has mooted the idea of floating a sovereign debt issue. The government came close to floating one in August last, but the south-east Asian crisis and the speculative onslaught on the rupee put paid to those plans.
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