After three waivers for crop loans over the last three years, farmers would see another round of waiver. For, Chief Minister B.S. Yediyurappa on Sunday announced that the government would waive interest on medium- and long-term loans borrowed for purchasing agricultural implements, tractors and tillers from PLD banks, DCC banks, and other cooperative banks.
The total interest on loans borrowed by farmers over the years would be around ₹500 crore, he told presspersons at Mayagondanahalli near Halebid on Sunday. “The government has taken this decision for the first time in history. We have decided to waive it. Preparations for the budget are on. I will present the budget on March 5,” he said.
Speaking to reporters at Hubballi airport on Sunday, Mr. Yediyurappa said a large number of farmers were caught in debt trap as they were unable to pay interest on loans. Waiving the interest amount on loans would give them some relief. This would cause a burden of ₹400 crore on the exchequer. This apart, the government was mulling over providing some concession to farmers who repaid loans before March 31, 2020.
Further, Mr. Yediyurappa said his government was committed to fulfilling the needs of farmers. Support price had been announced for paddy and procurement was on.
