Cong leader questions CM's farm loan waiver

Former Karnataka Minister for Co-operation H Viswanath lambasted Karnataka Chief Minister H D Kumaraswamy for not specifying clearly on the proposed waiver of farmers' loans in Karnataka and warned this could ruin the co-operatives and other financial institutions and also the depositors who have kept their money there.

Addressing a press meet here, he said the chief minister had announced on December 26 that even after a fortnight it has not given effect to his announcement by issuing an official notification or has not specified so far what type of loans would be waived off.

"The chief minister has said that all loans of farmers will be waived off. Does it mean, it covers even their building, tractor and all other loans or just the loans they have taken for cultivation of crops and if so to what extent? Does his assurance also cover plantations and commercial crop farmers? And from what date the loan waiver comes into effect," he questioned.

As a result, farmers were refusing to pay back their loans. Various financial agencies like co-operative societies, urban and rural banks had extended loans to farmers with funding from agencies like RBI and Nabard, apart from depositors, he said adding there are 21,000 co-operatives in the state with a turnover of Rs 35,000 crore.

Making it clear he was not opposed to waiving of loans, the Congress leader asked if the decision had been discussed in the Cabinet and if it had the sanction of the Finance Department, or "Is he readying for an Assembly election."

"The chief minister's irresponsible statement will destroy entire the rural economy," Viswanath cautioned and said that this will result in more suicides by farmers in the state.

Pressure was building up on co-operative societies for withdrawals by depositors, he remarked.