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"Debt waivers create a moral hazard from a credit repayment perspective and we cannot have omnibus waivers," chairman Harsh Kumar Bhanwala said, a week after the UP government announced a Rs 36,000-crore farm loan waiver package.
Weather forecasters are not convinced and have warned of severe dryness in the autumn months.
The agency has also downplayed the El-Nino factor, saying the chances of the phenomenon affecting rainfall were remote.
A record production of pulses, oilseeds and coarse cereals is expected on higher acreage under these crops.
According to IMD, the revival of monsoon rains in the grain bowl of northwest and central regions should help speed up the sowing of main summer crops.
The agriculture sector posted two straight quarters of negative growth of 1.1 per cent each to March.
Allaying fears of food prices going up due to deficient rains he said that there are adequate stocks available.
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