The Karnataka government on Wednesday announced crop loan waiver of up to Rs 50,000 per farmer that will cost Rs 8,165 crore to the state exchequer. Chief Minister Siddaramaiah announced this in the State Assembly.
It will help over 22 lakh farmers who have obtained loans from cooperative banks.
He said in the interest of agriculture sector, the government has decided to come to the rescue of over 22 lakh farmers and waived their crop loan or short-term loan from cooperative banks, outstanding till yesterday, by Rs 50,000 on each farmer.
Siddaramaiah also said the Centre will now have to come to the rescue of farmers by waiving the loan obtained by them from nationalized 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, nationalized and others banks that come under the ambit of the central government.