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Karnataka waives crop loans of farmers from cooperatives by up to Rs 50,000

A total of 22,27,506 farmers obtained loan of about Rs 10,736 cr from cooperative banks

Press Trust of India  |  Bengaluru 

Karnataka Chief Minister Siddaramaiah arrives at the Vidhana Soudha to present the State bugdet 2017-18 in Bengaluru (Photo: PTI)
File photo of Karnataka Chief Minister Siddaramaiah. Photo: PTI

The Karnataka government on Wednesday announced crop loan waiver of up to Rs 50,000 per that will cost Rs 8,165 crore to the state exchequer.

The move announced in the Assembly will help about 22,27,506 farmers who have obtained loans from

"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 said.

He said 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 Tuesday, by Rs 50,000 on each

A total of 22,27,506 farmers have obtained loan of about Rs 10,736 crore from in the state.

also said the Centre will now have to come to the rescue of farmers by waiving the loan obtained by them from nationalised and grameen banks.

He said the crop loan obtained by farmers from amounts to just 20 per cent, while 80 per cent is from grameen, nationalised and others banks that come under the ambit of the central government.

First Published: Wed, June 21 2017. 15:52 IST