Economist GMAT Reading Comprehension Challenge Article #10
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Article: Why are Indian farmers angry?
Article Paragraph Summaries
Farmers across India joined…Why are they angry?
- Indian farmers were on strike protesting “rural distress issues”.
- Farmers have been on strike many times before.
- Every year about 12000 farmers commit suicide because of debt obligations.
The last few years have been grim…added to the hardship.
- Weather, currency issues, gas prices, and higher taxes have put pressure on farmers.
The farmers are demanding…charge exploitative interest rates.
- Farmers want an increase in the minimum support price, improvement in that system (make it easier for farmers to sell unsold crops to the government), and unconditional loan forgiveness.
- The current crop support system is slow and causes loss of earnings.
- Because of the problem farmers sell to private buyers for less money.
- Current system of debt relief not working well.
- It also tends not to help small farmers as they often borrow from local money lenders at exploitative rates instead of from banks (banks/financial institutions don’t like loaning to small farmers).
There are no easy answers…the threat looks ominous.
- In order to improve the water crisis needs to be addressed.
- “Boreholes” up from tens of thousands to 20 million deplete groundwater.
- “Long Term Irrigation Fund” has been ineffective. Smaller steps would have been better.
- Farmers are fed up with fancy projects and false promises and have threatened not to vote for current government (Modi).
To explain why farmers in India are angry.
Farmers in India are angry because the Government has failed to address their issues mainly related to debt relief and crop support programs.