Karnataka waives Rs 8,165 cr in farm loans, cites weak monsoon for decision

Asks Centre to waive of farmer loans from nationalised and commercial banks

Karnataka joined states such as Uttar Pradesh, Punjab and Maharashtra to announce part waiver of farmer loans taken from cooperative banks, as the ruling Congress gears up for elections next year.

The loan waiver of Rs 8,165 crore that would benefit 22,27,506 farmers is limited to Rs 50,000 each farmer for loans availed till June 20.

Chief Minister Siddaramaiah, who also holds the finance portfolio, has so far maintained that waiving of loans would be a disservice to honest people who repay loans. But three consecutive years of drought and a weak monsoon this year has forced him to change