The move will benefit over 22,27,506 farmers who have obtained loans from cooperative banks.
“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 added that 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.
In Karnataka, a total of 22,27,506 farmers have obtained loans of about Rs 10,736 crore from cooperative banks.
The CM also said the that the Centre will now have to come to the rescue of farmers by waiving the loan they have obtained from nationalised and grameen banks.
Siddaramaiah added that the crop loan obtained by farmers from cooperative banks amounts to 20% only, while 80 % is obtained from grameen, nationalised and others banks, that come under the central government.