Karnataka farmers to hit the streets today as CM's loan waiver promise remains unfulfilled

Just a month ago, Karnataka got a new government as well as a new chief minister, HD Kumaraswamy, who had promised the farmers of the state to waive off all debts, including loans given by nationalised banks, if he was voted to power. However, Kumaraswamy needs over Rs 53,000 crore to fulfil his promise, which is a challenge. Waiving off such a huge amount can be detrimental to fiscal management of the state. But the farmers are in dire need of credit as they are caught between good monsoon and lack of fresh credit as the sowing season begins. Most institutional lenders have said fresh loans will be given only when the previous arrears are dealt with. Hence, farmers across Mandya, considered the epicentre of the Karnataka farmers’ movement, will hit the streets today to raise fresh demands to waive off their loans, reports Mint. “Every bit of information that was sought from us has been submitted to the deputy commissioner’s office. However, there seems to be absolutely no movement on the loan waiver promise,” Somanahalli Suresh, a farmer leader from Mandya, said. Farmers are also saying the government should at least direct lending institutions to give fresh credit to help them go in for sowing, even if the farm loan waiver takes more time. No relief for farmers Karnataka farmers held several protests last year demanding a complete loan waiver and the then government granted a partial loan waiver of Rs 8,165 crore, which was announced by former Chief Minister Siddaramaiah. However, it did not help in reducing the debt burden of the community. Meanwhile, the rain fury in many parts of Karnataka and neighbouring states has added to the troubles of the community. Although Kumaraswamy had set a deadline of 15 days after coming to power to fulfil his loan waiver promise, the farmers have not yet received any financial relief. Seeking Centre’s help Kumaraswamy had requested the Prime Minister Narendra Modi-led central government last week to foot half the costs of the proposed farm loan waiver to help reduce the burden on the state’s coffers. “My government is ready to help farmers in crisis. Around 8.5 million farmers in Karnataka have outstanding loans, due to drought and crop failure. The state government is ready to waive off the loans of these farmers, but seek 50 percent backing of the Union government,” Kumaraswamy had said in New Delhi. Source:Money Control