After Maharashtra, UP and Punjab, Karnataka has announced crop loan waiver to farmers who are in distress. This significant initiative by the ruling Congress Government led by Chief Minister Siddaramaiah will help hundreds of farmers across the State.
Announcing this in the ongoing session of the Assembly on Wednesday Siddaramaiah said his Government has waived crop loan upto rupees Rs 50,000 and it will cost Rs 8,165 crore to the exchequer. According to Government, this waiver will help about 22,27,506 farmers who have obtained loans from cooperative banks.
“Farmers are in distress. They have been demanding loan waiver. We have to respond to farmers, even though it will have an impact on State’s finances,” Chief Minister said.
He said, in the interest of agriculture sector, the Government has decided to come to the rescue of 22,27,506 farmers and waived their crop loan or short-term loan from cooperative banks, outstanding till Tuesday, by Rs 50,000 each. According to the State Government, a total of 22,27,506 farmers have obtained loan of about Rs 10,736 crore from cooperative banks in the State.
Speaking in the Assembly, Chief Minister asked the Centre to come to the rescue of farmers by waiving the loan obtained by them from nationalised and grameen banks.
“The crop loan obtained by farmers from cooperative banks amounts to just 20 per cent, while 80 per cent is from grameen, nationalised and others banks that come under the ambit of the Central Government. I want Centre to come to the rescue of the farmers,” he demanded.
The Opposition BJP and the JDs and farmers unions have been demanding crop loan waiver and it had become a major political issue. last year, hundreds of farmers have committed suicide in Karnataka, Continued drought situation across the State added to their woe. The farming community, especially sugarcane farmers, has been demanding loan wavier.
In August, the BJP-led Uttar Pradesh Government under Yogi Adityanath announced it’s much touted farm loan waiver, estimated to benefit over 2.15 lakh small and marginal farmers in that State. The Devendra Fadnavis Government in Maharashtra soon followed suit after farmers intensified protests in the State since June 1.
Farmers in Karnataka have been seeking compensation from the Government for the losses incurred by them after their crops went dry in the last drought. Karnataka has seen successive droughts for the past six cropping seasons and some farmers in the State have reportedly received a compensation of one rupee in their bank accounts for damaged crops.