Karnataka gives Rs 50,000 loan relief to farmers

Bengaluru: Facing mounting pressure from farmers and Opposition parties, the Karnataka government on Wednesday announced crop loan waiver of up to Rs 50,000 per farmer, that will cost Rs 8,165 crore to the state exchequer.

The waiver will help 22,27,506 farmers who had obtained loans from cooperative banks, chief minister Siddaramaiah said in the Assembly.

Karnataka has become the fourth state this year to take such step following Uttar Pradesh, Maharashtra and Punjab. The state is headed for polls Assembly polls next year.

“Farmers are in distress. They have been demanding loan waiver. We have to respond to farmers even though it will have impact on the state’s finances,” Mr Siddaramaiah said.

He said that in the interest of the agriculture sector, the government has decided to come to the rescue of 22,27,506 farmers and waive their crop loans or short-term loan from cooperative banks outstanding till Tuesday, by Rs 50,000 on each farmer, irrespective of the loan amount.

Karnataka has been reeling under successive years of drought, with the last two years being described as “severe” by the government.