Karnataka to waive farm loans to the tune of Rs. 8,165 crore

Karnataka Chief Minister Siddaramaiah announcing farm loan waiver on the last day of the Legislative Assembly session, at Vidhana Soudha in Bengaluru on Wednesday.

The Karnataka government has decided to waive the crop loans borrowed by farmers from cooperative banks. This will benefit about 22,27,500 farmers.

Announcing this in the Legislative Assembly, Chief Minister Siddaramaiah said crop loans up to ₹ 50,000 would be waived. Loans outstanding as on June 20 would also be waived. This measure would cost the State exchequer ₹ 8,165 crore.

Mr. Siddaramaiah urged the Central government to waive loans borrowed by farmers from nationalised banks and regional rural banks.

The Chief Minister said a total of Rs. 10,736 crore was borrowed from cooperative banks by farmers.