The Karnataka government yesterday announced a crop loan waiver of up to Rs 50,000 per farmer that will cost Rs 8,165 crore to the state exchequer
Chief Minister Siddaramaiah said the waiver is in the interest of the agriculture sector
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The Karnataka government yesterday announced a crop loan waiver of up to Rs 50,000 per farmer that will cost Rs 8,165 crore to the state exchequer. The move announced in the Assembly will help about 22,27,506 farmers who have obtained loans from cooperative banks.
Karnataka has become the fourth state this year to take such step following Uttar Pradesh, Maharashtra and Punjab.
"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 Siddaramaiah 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 yesterday, by Rs 50,000 on each farmer.
"Unlike in Uttar Pradesh, the order to this effect will be issued immediately," he added.
A total of 22,27,506 farmers have obtained loan of about Rs 10,736 crore from cooperative banks in the state.
Siddaramaiah also said the Centre will now have to come to the rescue of farmers by waiving the loan obtained by them from nationalised and grameen banks.
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