Siddaramaiah writes to Narendra Modi for farm loan waiver

Bengaluru: Mounting pressure on Prime Minister Narendra Modi on waiver of farm loans released by public sector banks, Chief Minister Siddaramaiah on Monday dispatched a letter to the leader with a plea for writing off such loans.

His letter comes close on the heels of the state government's decision to waive farm loans to the tune of Rs 8,150 crores given to 2.2 million farmers. 

The Chief Minister mentioned this state government initiative to the rescue of farmers who have suffered losses in view of severe drought in Karnataka. 

The Chief Minister informed Modi that 80 per cent of the agricultural loans in the state were released by public sector banks and regional rural banks (RRBs) while only 20 per cent was given by cooperative societies. 

“I had earlier requested you (Prime Minister) to waive 50 per cent of short term loans of farmers availed from nationalised banks, private banks and regional rural banks. I had also assured you to waive remaining 50 per cent of loans availed from co-operative banks”, Chief Minister added in the letter. 

Besides, Siddaramaiah also stated that the state government's decision would help 22, 27,506 farmers. However without waiver of loans release by other banks, the benefit would not reach all farmers. 

As on March 31, 2017, about 51 lakh farmers in Karnataka have availed Rs. 52,744, 28 crores of crop loans. Of this, 28.73 lakh farmers have availed, Rs. 42,007, 47 crore loans from commercial banks and RRBs and 22.27 lakh farmers have availed Rs. 10,736,81 crore from co-operative banks. 

The Chief Minister also appealed to Modi to take a decision on such loans as it would help farmers commence normal agricultural operations during the Khariff season.