Recently, several Indian government announced the exemption of poor farmers loans, this will help to stimulate the rural areas of steel consumption.

On Sunday, Maharashtra announced a package of farmers' loan exemption for a total of Rs. 350bn, after which the farmer ended the 10-day protest. Two months ago, the Uttar Pradesh government also waived a total of Rs. 363 crore of farm loans. Andhra Pradesh, Trennan Ghana also announced the exemption, allegedly, the other states, especially those who are about to vote for the election will also follow this practice. India's 29 states have large agricultural communities and farmers, which account for 40% of the national voters.

In rural India, per capita steel consumption is at the lowest level in the world. The company said that the repayment of loans to help stimulate the consumption of agricultural steel, mainly layer panels, durable consumer goods and automotive steel. Farmers have seen a surge in sales as farmers now have more disposable income to buy equipment.

According to an auto parts supplier said the second quarter supply of tractors wheel rims an average of 50,000, compared to 1 quarter 40,000 by 20%. The latest data show that the second quarter of India's automobile production of 4.655 million, an increase of 10%, including buses, commercial vehicles, tricycles and two-wheelers. In April, India's hot rolled coil consumption of 1.04 million tons, up 30.3%, cold rolled coil 248,000 tons, up 6.4%, galvanized and coated board consumption by 30.6% to 546,000 tons.

Some states in India are exempt from precedent, which may lead to an increase in the rate of intentional default of farmers' loans. More and more farmers refuse to pay off their payments, but in any case, it is good for driving rural steel consumption.