Karnataka waives crop loans of farmers from cooperatives

Bengaluru: The Karnataka government on Wednesday decided to waive crop loans of up to Rs 50,000 availed by over 22 lakh farmers from cooperatives in the state.

“Crop loans up to Rs 50,000 borrowed by 22,27,500 farmers from cooperative banks in the state would be waived off,” Chief Minister Siddaramaiah told the assembly.

The decision followed the demand of the opposition to mitigate farmers’ hardship and in order to give them relief from the severe drought of 2016.

The waiver would cost the exchequer Rs 8,165 crore.

“Crop loans outstanding up to June 20 will also be waived though farmers borrowed a total of Rs 10,736 crore from cooperative banks so far,” the Chief minister said.

Siddaramaiah also urged the Centre to waive crop loans that farmers borrowed from state-run and regional rural banks.