Karnataka government likely to waive interest on co-op farm loans

Bengaluru: It could be the impact of a proposed Rahul Gandhi visit which has now been postponed. The state government is seriously thinking of waiving interest on farm loans borrowed by farmers from co-operative banks to help those in distress.

However, this may be extended to only those farmers who have taken long and medium term agriculture loans from co-operative institutions. This loan waiver will not be applicable to loans borrowed from nationalised banks as it comes under the ambit of the Union government.

This is also seen as a hasty remedial measure by the Siddaramaiah government since massive advertisement campaigns on television and street plays by the agriculture department, have failed to prevent farmers from ending their lives. According to an estimate, already the farmer suicide toll has crossed 475 in the last three months and there is no let-up with two to three farmers committing suicide daily.

Farmer suicides have become a big headache for CM  Siddaramaiah who has been facing heat from opposition parties as well as detractors within the Congress. Congress legislators have been gunning for Agriculture Minister Krishna Byregowda for his ‘failure’ to instill confidence among farmers. Mr Byregowda faced the wrath of farmers in Mandya recently during a review meeting.

Minister of Sugar H.S. Mahadevaprasad told Deccan Chronicle that the government is thinking of waiving interest on long and medium term agriculture loans borrowed from co-operative banks.
However, he ruled out complete waiver of crop loan as it would be a big burden on the state treasury.