Farm credit woes

This refers to the “Institutional credit to agriculture in FY24 at an all-time high of ₹25.10 lakh cr” (September 17). Although the farmers have better accessibility to flexible institutional credit, there are still a lot of small and marginal farmers who rely on private money lenders. Freeing those farmers from the traps of the moneylenders is vital for their welfare. Agri-based infrastructure development is essential to reduce the cost of pre and post-farming activities. Better price discovery of farm produce is still not addressed properly and that is adversely affecting the income of farmers. More reforms are needed in the farm sector.

VSK Pillai

Changanacherry (Kerala)

SEBI staff trouble

The report ‘SEBI withdraws note that blamed ‘external elements’ for staff unrest’ (September 17), augurs well for the regulator.

Much like ‘act in haste to repent at leisure’, SEBI has now realised the ‘critical role’ of the employees and appears all set to engage with the staff who raised the issue of ‘toxic work culture’. That the staff has not rescinded or withdrawn the email to FM complaining of ‘abusive language/toxic work culture’, the 15 minutes ‘silent protest’ by the staff, and now, the withdrawal of the note by SEBI; all point to the existence of merit in the allegations.

Any sign that all is not well within SEBI house needs serious attention and corrective action.

Jose Abraham

Kottayam

Dollar reliance

The article ‘Dominant Dollar’ (September 17) highlights a key point: despite the US facing domestic economic challenges, the dominance of the USD continues. This isn’t because of stellar economic management but rather due to global reliance on the dollar. The US has a massive trade deficit with major economic powers like China, Japan, and Germany, and to a lesser extent, India.

Most countries invoice their trade in USD, and it remains the currency of choice for reserves, which strengthens its position. Efforts to trade in domestic currencies, like India’s push for bilateral invoicing, haven’t gained much ground due to their limited role in global trade. Meanwhile, the US dollar’s dominance negatively impacts emerging economies like India by exporting inflation whenever the US increases money supply.

Furthermore, US-imposed sanctions on countries like Russia and Iran restrict the usage of the dollar in international trade, freezing billions in assets. However, despite these setbacks, the USD remains dominant, largely because of the economic instability in parts of the EU, preventing any real challenge to its status.

Srinivasan Velamur

Chennai