Catalysing the farm sector

With reference to the editorial ‘Farm fresh’ (January 8), suggestions from the experts at businessline’s agri summit should be seriously considered. Farmers’ reluctance to shift from unscientific production methods, lack of awareness of technological innovations and poor supply of credit, among others, continue to pose challenges. Though there’s government and institutional support in the areas of seed procurement, supply of subsidised manure and pesticides, warehousing and cold storage facilities, the farm sector still faces hurdles.

The problem of indebtedness in the farm sector can be addressed with help of innovative solutions from agri start-ups, such as AI based soil supervision, appropriate seed procurement, simplified mechanised operations, accessing competitive market through online trading platforms for commodities, etc. The reform package would be incomplete without aggressive private investment in the sector and inclusiveness of women farmers.

Sitaram Popuri

Bengaluru

Hindenburg report

The editorial on the Adani-Hindenburg case says that “the order to probe whether Hindenburg Research has violated any law in publishing the report on Adani and to take action against it, appears needless.” This is intriguing. What is wrong in the Supreme Court order? Would you like to justify the overseas traders creating a rout amounting to $100 billion in Adani shares just from narratives that target their governance, making numerous small investors lose their hard-earned money, tarnishing the image of big public institutions besides pummelling Adani and pulling our economy down?

The expert committee has noted that the Hindenburg report contained no new data but was substantially a collection of inferences from data in public domain.

The Adani Group could tap loans at rates as low as 6-6.5 per cent prior to the allegations by Hindenburg in January 2023. Entities with ‘AAA’ rating continue to access bank loans at 7.25-7.75 per cent, while those with ‘A’ and above ratings get funds at 7.5-8.75 per cent. The Supreme Court verdict will play a critical role in deciding the group’s ability to borrow from banks here on.

K Somasundaram

Madurai

Net interest margin

Apropos ‘Banks’ earnings to moderate in Q3 on weak margins, rise in expenses (January 8). The net interest margin in the banking industry is certainly getting reduced periodically mainly due to less difference prevailing between the interest received on advances and interest paid on deposits. The rates of interest are fixed by banks based on the limitations stipulated by the RBI. Banks have to focus more on getting CASA deposits which carry less interest rates. At the same time, banks also should increase advances to retail trade where higher interest rate is leviable.

Katuru Durga Prasad Rao

Hyderabad

Drawbacks in Telecom Bill

The Telecommunications Bill of 2023 is like the proverbial curate’s egg — good in parts. The Bill was passed with minimal debate. This was a case where referral to a parliamentary committee could have been beneficial. The drawbacks of the Bill are significant. The laws in independent India must ideally empower citizens, recognise and respect their rights, and temper state power. The Bill needs to go some distance before it can be said to meet these requirements.

Shivanand Pandit

Goa

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