Karnataka announces ₹2,500 drought relief for farmers, 12-month loan moratorium
Karnataka unveils a one-time ₹2,500 drought relief for farmers and a 12-month loan repayment moratorium, drawing Opposition criticism.
The Karnataka government on Thursday announced a one-time relief of ₹2,500 for farmers across the State to cushion crop losses caused by drought conditions. The package, unveiled in the Legislative Assembly, also includes a 12-month moratorium on loan repayment, with farm loans to get an extension of 36 to 60 months depending on their tenure.
The relief is expected to cost the exchequer about ₹1,250 crore and benefit an estimated 45 lakh to 50 lakh farmers. Deputy Chief Minister and Revenue Minister G. Parameshwara made the announcement at the end of a discussion on drought and farming distress during a four-day special session that also took up the K. Kasturirangan Committee report.
Mr. Parameshwara said the government would provide every farmer a one-time relief of ₹2,500 in the first phase, anticipating funding from the National Disaster Relief Fund. The State has already declared 177 taluks drought-affected, and another 50 taluks where a ground truthing exercise is under way may be added to the list. Initial government estimates put the losses from drought at about ₹40,000 crore.
On recovery practices, the Deputy Chief Minister said micro finance companies had been warned of criminal action if they harassed farmers over repayment. Cooperation Minister Laxman Savadi told the House that strict instructions had been issued against any forcible loan recovery proceedings against farmers.
Mr. Parameshwara also said that with 17 to 18 States facing drought, Karnataka would appeal to Prime Minister Narendra Modi to declare drought a national disaster. Chief Minister D.K. Shivakumar said the State would share the burden of a loan waiver if the Centre announced one.
Opposition Leader R. Ashok, who had earlier sought a loan waiver, described the relief amount as a pittance and said the government had failed to grasp the ground reality of drought. Noting that daily wages in the State range between ₹600 and ₹1,200, he said the announced relief was insignificant and would not fetch even half a quintal of ragi. About a dozen Opposition legislators staged a walkout in protest against what they called meagre compensation.