Karnataka waives Rs 8,165 crore worth farm loans

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.

By: Express Web Desk | Bengaluru | Updated: June 21, 2017 5:37 pm
farmer loans, JDS chief H D Kumaraswamy, Karnataka farmers, Karnataka government, Karnataka government on farm loan waive, Siddaramaiah “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.

The Karnataka government on Wednesday waived Rs 8,165 crore worth farm loans. Loans of upto Rs 50,000 per farmer will be written off, the government announced in the assembly. The move will help about 22,27,506 farmers who have obtained loans from cooperative banks.

Chief Minister Siddaramaiah said: “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.”

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.

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.

He said 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.

With PTI inputs

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  1. V
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      1. N
        Jun 22, 2017 at 3:15 am
        When will Gujarat give wavier to farmers ? My family have crop loan of 2.75 lakhs.
        1. R
          Jun 21, 2017 at 6:55 pm
          This is stupid and risky. The previous UPA government, the Yogi government, the Maharashtra government and now this. They are committing huge mistakes by these loan waivers by just vote bank politics. How will this be a long term solution ? This year was bumper harvest and still loan waiver. How about when drought or floods strike ? You need to invest in planning, technology and education not this. This will just hurt the economy by delaying the problem. The center instead of saying "the states are responsible for the loan waiver" should have instead bought the states and central ministries together and said " no loan waivers - lets decide on a long term solution for improvement of farmers"
          1. L
            l s
            Jun 21, 2017 at 6:54 pm
            Waving off of loans is a good business for and by farmers. Every year, the farmers take loans , knowing very well that the loans would be waived. This sort of political act's is nothing but corrupting the farmers to do wrong. Politicians should not have the powers to wave of huge loans. Who's money are they alloting.
            1. H
              Jun 21, 2017 at 6:33 pm
              This loan waiver to farmers is the political gimmick to win the support of farmers before assembly elections due in 2018 in Karnataka. This step will not solve poverty and backwardness of farmers. The govt must ensure the realistic price of food grains grown by farmers by finalizing foolproof marketing strategy which ensures no loss to poor farmers. This can only be possible if govt makes arrangement for the purchase of main food grains like wheat, paddy, cereals and other items on realistic price considering the cost of production and reasonable profit to farmers. So state govt must chalk out a foolproof corruption free system honestly and efficiently to help farmers rather than fooling them by this casual waiver.
              1. T
                Jun 21, 2017 at 9:43 pm
                Dude blame the trend setter ..we all know it's a big mistake and its done by BJP in UP and Maharashtra ..and it really paid back to them ... Can't blame other parties are forced to do it to make sure that they are not losing coz of not waiving loan
              2. N
                Jun 21, 2017 at 6:12 pm
                Very sensible decision. Next, all homeless persons can be given housing in the Vidhana Soudha. And poor farmers will be allowed to travel without tickets on Karnataka State Transport buses.
                1. B
                  Bhavadas T
                  Jun 21, 2017 at 6:05 pm
                  Good decision. Financial implication is very less. Limited to Rs. 50,000/ per family, not much burden to Government.
                  1. R
                    Jun 21, 2017 at 6:58 pm
                    Good decision ? Check the total number of farmers !! It comes out to be a total of Rs 22000 crore. That amount could instead solve the partial bad loan problems of the banks while restructuring takes place. And how does this solve the problems in the long run ? Loan waivers even when there is a bumper harvest. Now what will happen when there are droughts or floods ? This amount could have been invested in planning, technology and education to farmers for sustainable organic farming. This will now turn into vote bank politics forcing other governments for more loan waivers. All loan waivers - by the UPA government, the Yogi government, Maharashtra and Karnataka are stupid. Solve the long term problem instead of this.
                    1. I
                      Jun 21, 2017 at 8:38 pm
                      8000 cr is what a state minister swallows on the side (not ry perks) in one to two years
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