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By:

Parashram Patil

14 January 2026 at 3:19:45 pm

Credit Scores for Farmer Health

India’s rural co-operatives are undergoing the biggest technological overhaul in their history. More than 61,000 Primary Agricultural Credit Societies (PACS) have now been integrated into a unified digital ERP platform under the Ministry of Co-operation, transforming once paper-bound village societies into data-driven financial hubs. PACS are no longer mere credit counters. Increasingly, they distribute fertilizers, run Jan Aushadhi centres, lease farm machinery and serve as the operating...

Credit Scores for Farmer Health

India’s rural co-operatives are undergoing the biggest technological overhaul in their history. More than 61,000 Primary Agricultural Credit Societies (PACS) have now been integrated into a unified digital ERP platform under the Ministry of Co-operation, transforming once paper-bound village societies into data-driven financial hubs. PACS are no longer mere credit counters. Increasingly, they distribute fertilizers, run Jan Aushadhi centres, lease farm machinery and serve as the operating system of the rural economy. Yet beneath this modernisation lies an old and largely ignored vulnerability. India’s agricultural-credit architecture has become adept at managing risks to crops, but not risks to cultivators themselves. Droughts, pest attacks and unseasonal rainfall are insured against. The body of the farmer, however, remains outside the balance sheet. That omission is becoming expensive. Measuring Farmer Health A growing body of thinking, described as the ‘Farmers Health Capital’ framework, argues that agricultural productivity cannot be measured purely through land, machinery and labour. Classical economics models farm output as a combination of technology, capital and labour: Y=f(A,K,L) But this assumes labour is mechanically constant. In reality, labour efficiency depends heavily on the physical condition of the worker. The revised framework therefore introduces a “health efficiency multiplier” modifying productivity into: Y=f(A,K,L\times H) Here, H represents the health stock of the cultivator. Under punishing heatwaves, pesticide exposure or chronic musculoskeletal strain, this stock depreciates rapidly. A farmer may physically work eight hours in a field during a 42°C heatwave, but the effective economic value of that labour may collapse by half. This sounds abstract until one examines the financial consequences. Across rural India, many short-term loan defaults are triggered not by crop failures but by medical emergencies. When illness strikes a farming household, repayment schedules are often ‘hijacked,’ meaning money meant for servicing crop loans is redirected towards hospital bills and urgent treatment. The result is a silent leak in the co-operative credit system. Traditional crop insurance protects against environmental shocks. It does little when the harvest succeeds but the cultivator collapses before reaching the mandi. A family that should have remained solvent suddenly becomes a non-performing asset (NPA) risk for its local PACS. As digitised co-operatives expand their lending operations, this human vulnerability threatens to scale with them. That is why some policy thinkers including myself are proposing a new mechanism: health-linked credit scorecards embedded directly into the PACS digital infrastructure. The idea is when farmers visit their local PACS to purchase inputs or manage seasonal credit, they could undergo rapid occupational-health assessments through digital interfaces integrated into the ERP system. The software would then generate a “Health Capital Rating” based on factors such as heat exposure, ergonomic strain and safe pesticide practices. Farmers who adopt protective behaviours would earn “Health Capital Credits.” These could translate into tangible banking incentives, including lower interest rates on crop loans. Low Cost The attraction of the proposal lies partly in its low cost. Because the national PACS digital network already exists, advocates argue that the model could initially be tested as a software-layer upgrade rather than a major new welfare scheme. A pilot across high-stress agricultural belts such as Vidarbha could examine whether health-linked monitoring actually reduces default rates over a single crop cycle. Climate change magnifies this distortion. Heatwaves do not merely reduce crop yields; they directly erode labour productivity. Under severe thermal stress, the human body diverts energy toward cooling itself, accelerating fatigue and impairing cognitive function. For smallholders already operating on thin margins, the biological cost of farming is becoming economically destabilising. India’s co-operative ecosystem is uniquely positioned to operationalise such an approach. Large federations like IFFCO already possess deep distribution networks across rural India. Dairy unions modelled on Amul and sugar co-operatives in western India have a direct financial interest in maintaining the physical resilience of their producer base. A healthier cultivator is not merely a social good; he is a more reliable borrower, supplier and economic actor. Critics may worry about creating a two-tier rural credit structure where physically vulnerable farmers are penalised rather than protected. Others will question whether the state should integrate biometric health data into financial decision-making at all. Yet the central insight behind the proposal remains powerful. India’s rural-credit debate has long focused on waivers, subsidies and insurance. Far less attention has been paid to the biological fragility underlying agricultural finance itself. The computerisation of PACS offers an opportunity to rethink that equation. (The writer is a member of Maharashtra Agriculture Price Commission. Views personal.)

India waits to lasso diamantaire Mehul Choksi

Mumbai: India rubbed its hands gleefully as the Belgium Police honoured its request to arrest the absconder diamantaire Mehul Chinubhai Choksi – more than seven years after he, along with his nephew Nirav Deepak Modi - allegedly duped the Punjab National Bank of nearly Rs. 13,800-crores.

 

The scam involving the ‘Mehul Mama-Nirav Bhanja’ erupted in Jan 2018, after the PNB lodged a complaint with the Central Bureau of Investigation (CBI).

 

By then the kin, along with many of their family members, winked and slipped out of the country, leaving a rattled India rubbing its palms in disappointment.

 

A political-cum-financial storm raged, embarrassing the Bharatiya Janata Party government of Prime Minister Narendra Modi a year before the Lok Sabha elections.

 

Multiple agencies launched a multi-pronged probe into what became the biggest banking scam in the past quarter century – and almost four times bigger than the stock market-cum-banking fraud the late Big Bull Harshad Mehta had inflicted on the Indian economy 33 years ago (in April 1992) – when it was just opening up.

 

In Belgium

According to official reports, Choksi was living with his Belgium citizen-wife Preeti in Antwerp, a global diamond hub, presumably for the past 18 months on a ‘residency permit’ acquired through questionable means, for medical reasons.

 

Earlier, he shot to the headers (June 2021) while being taken in a wheelchair to a court by the Dominican Republic's Police on charges of sneaking into the small country in the Caribbean Sea, North America.

 

Interestingly, as the Antigua & Barbuda government initiated the process to cancel his citizenship acquired through an investor visa, Choksi had suddenly gone ‘missing’ till he surfaced in the Dominican Republic.

 

The April 2025 action by Belgium followed a request by India’s CBI and the financial frauds specialist Enforcement Directorate (ED) to nab Choksi as the InterPol had revoked his Red Corner Notice in 2023.

 

Mama and Bhanja

‘Mama’ Choksi is the founder-owner of Gitanjali Group while ‘bhanja’ Nirav’s Firestar plus other companies – and the duo, with some PNB officials hand-in-glove – conspired to make a ‘mamu’ of not only PNB, but other banks, as it subsequently tumbled out.

 

After making a quiet exit, Choksi was detected living in the verdant Antigua & Barbuda Isles (West Indies), then attempted entry to the Dominican Republic, was sent back to Antigua & Barbuda and then went to Belgium where he was nabbed on Sunday.

 

Similarly, Modi was found sauntering on the streets of London and nabbed in March 2019. He remains in jail there since India's extradition is still pending.

 

However, India is keeping its fingers crossed that it may finally lay hands on Choksi, bring him to India and face trial in the PNB scam, though it may take time.

 

Born in Mumbai (1959) and educated in Gujarat, Choksi, 66, and wife Preeti have three children.

 

The Rs. 13,800-crore PNB scam

In the modus operandi revealed after India’s second-largest PSU bank PNB admitted it was scammed, Choksi and Modi used fraudulent Letters of Undertaking (LoU) to get overseas credits or loans from Indian banks.

 

The PNB first informed the Reserve Bank of India (RBI) of the fraud and then lodged a criminal complaint with the CBI in Jan. 2018, plus another CBI complaint in Feb, that led to a FIR against Modi and Choksi and their companies.

 

The ED entered the scene to probe the allegations of money-laundering through the LoUs – which they allegedly misused to avail short-term business finances from foreign branches of Indian banks.

 

The probe said that the duo were availing the LoUs from the PNB’s Brady House Branch from March 2011, and over the next six-seven years, managed to get a whopping 1,200-plus LoUs like a breeze with the help of some friendly bankers within.

 

Post-scam, the gold-diamond companies Gitanjali Group and Firestone Group with multiple operations in India and abroad have largely wound up, while some personal assets of the mama-bhanja have been auctioned to recover a part of the dues.

 

ED's plea to declare Choksi fugitive stuck for seven years

Even as absconding diamantaire Mehul Choksi, a key accused in the Punjab National Bank loan fraud case, has been arrested in Belgium, the ED's plea to declare him a fugitive economic offender has been pending before a court in Mumbai for nearly seven years.


Choksi, 65, and his nephew diamantaire Nirav Modi are the prime accused in the Rs 13,000 crore PNB bank loan fraud case. Choksi was arrested in Belgium following an extradition request by Indian probe agencies, official sources said on Monday.


The Enforcement Directorate had filed the application in July 2018, seeking to declare Choksi an FEO and confiscate his assets under provisions of the Fugitive Economic Offenders Act.


However, the matter has witnessed repeated delays owing to a barrage of applications filed by the accused in the PMLA court and the Bombay High Court alleging procedural lapses in the Enforcement Directorate's plea.


"The court is kept busy with frivolous applications, and hearing on our application to declare him (Choksi) an FEO has been adjourned for the past seven years,” an ED officer had said after the hearing was once again deferred this February.


"The court should have continued the hearing and taken a decision on the future course of action once the application was moved," the officer had said.

He had urged the court to take note of the repeated filing of similar applications and to not entertain them.


Choksi's lawyer had informed the court that the accused was undergoing treatment for suspected cancer in Belgium and intended to file an application in connection with his health.


Under the FEO Act, an individual can be declared a Fugitive Economic Offender if a warrant has been issued against him for an offence involving Rs 100 crore or more and he has left India while refusing to return. Once declared an FEO, the person's property can be confiscated by the investigating agency.


Choksi had challenged the ED's application in the Bombay High Court, alleging that the agency "had not followed proper procedure before filing the application and, hence, it stands vitiated".


However, in September 2023, the High Court dismissed his plea, ruling that the ED had adhered to the prescribed format under the FEO Act. It also vacated a stay on the special court's proceedings.


Despite this, the hearing on declaring Choksi FEO could not commence, with Choksi continuing to file applications before the special court through his lawyers.


While most of these pleas have been dismissed, a few remain pending. His latest attempt to stall proceedings through a plea to recall the notice issued on the ED's FEO application was rejected in December 2023.


According to ED officials, Choksi left India under suspicious circumstances in early January 2018.


Shifting stance

Choksi's counsel has argued that the ED kept shifting its stance on the material grounds for declaring him an FEO and that the suspension of his Indian passport made it impossible for him to return for investigation.

The court, however, rejected this argument, stating that the notice was issued based on accurate information and not based on "wrong facts or mistaken assumptions".


ED claimed the accused left the country under suspicious circumstances in the first week of January 2018.


Nirav Modi has already been declared as an FEO by the special court. He has been lodged in jail in London since 2019.

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