Bengaluru: The state government has decided to waive off farm loans of upto Rs 50,000 taken by farmers from co-operative banks till June 20.
Announcing the decision in the state Assembly, Chief Minister Siddaramaiah said the decision of the government will burden the state exchequer by Rs 8165 Crore and around 22,27,506 lakh farmers are likely to benefit from the decision.
Under tremendous pressure from the opposition, the decision was kept a closely guarded secret and the detractors were taken by surprise when CM announced the decision in the late afternoon.
The master stroke is likely to benefit the Congress in the forthcoming Assembly elections as well mount pressure on the central government to waive off farmer loans taken from nationalised banks.
The Congress-led state government came under tremendous pressure from various quarters after BJP-led governments in Uttar Pradesh and Maharashtra announced loan waiver.
“Those governments have not issued formal orders despite making early announcement”, CM Siddaramaiah said and added that the state government will bear the burden to give relief to farmers in distress despite RBI Governor Urjit Patel and Finance Minister Arun Jaitley taking opposite views.
Opposition Leader in the Assembly Jagadish Shettar welcomed the decision and termed it as victory for opposition party’s relentless struggle. He also said that BJP governments in UP and Maharashtra did not demand for central assistance to waive off farm loans and asked the Congress government to take a leaf out of that move and make united efforts barring party affiliations to avail more central concession for farmers facing severe drought.
Later Speaker K B Koliwad adjourned the Assembly to 4 pm.
Meanwhile, irrigation expert Prof. Narasimhappa said loan waiver will not greatly benefit the farming community. Only when farmers get good prices for their produce, they will benefit and termed the loan waiver as a continuous process in drought-hit states.
K S Puttanniah, leader representing the farming community in the state Assembly, welcomed the decision and urged Prime Minister Modi and Finance Minister Jaitley to do the rest to bail out the farmers from trouble in the state.
Whether good politics has prevailed over bad economics? Only time will tell.
