"An official order on guidelines will be issued soon to waive agricultural loans to the tune of Rs 49,000 crore," said the statement from the CMO.

Karnataka to issue official order soon on Rs 49000 cr farm loan waiver
news Farm Loans Tuesday, July 31, 2018 - 07:32

Karnataka will soon issue an official order with guidelines to waive off agricultural loans worth Rs 49,000 crore, giving relief to distressed farmers across the state, said an official statement on Monday.

"An official order on guidelines will be issued soon to waive agricultural loans to the tune of Rs 49,000 crore," said the statement from the Chief Minister's Office.

Earlier, Chief Minister H.D. Kumaraswamy has directed Deputy Commissioners (DCs) and Chief Executive Officers (CEOs) of Zilla Parishads (local bodies) in all the 30 districts across the state to implement the waiver scheme transparently.

"The Chief Minister has cautioned the DCs and CEOs on the role of middlemen who try to misuse the waiver scheme and misguide the farmers," added the statement.

Addressing a two-day conference of DCs and CEOs from all the districts in Bengaluru, Kumaraswamy directed them to redress public grievances, visit talukas (local bodies) and clear the files at the earliest.

Though the Chief Minister first announced Rs 34,000 crore crop loan waiver from the state's co-operative banks in the state budget on July 5, the relief was subsequently extended to farmers who raised loans from state-run banks as well.

Total loans amounting to Rs 49,000 crore to be waived include about Rs 38,000 crore crop loans granted to the farmers by state-owned banks and about Rs 9,500 crore of current loans.

The Chief Minister advised the district officials to provide skill development training to unemployed youth.

The farm loan waiver proposal was originally approved by the coordination committee of Karnataka's JD-S-Congress coalition government on July 1. 

However, a week later on July 9, thousands of farmers across Karnataka protested against the CM for not waiving crop loans fully as promised by him before the May 12 assembly elections.

"Kumaraswamy promised to waive all our loans within 48 hours of coming to power. He came to power with Congress support but failed to keep the promise. He should waive all loans, including those from state-run banks," state farmers' association president K. Chandrashekar had told reporters in Bengaluru.

(With IANS inputs)

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