Bengaluru,Oct 9: Chief Minister Siddaramaiah, who is already walking a tight financial rope, came under severe pressure on Friday from party vice-president Rahul Gandhi to extend more relief to farmers.
Left with no choice, the government is likely to announce waiver on long-standing interest on loan raised by farmers from co-operative institutions and also a hike in compensation to farmers who committed suicide.
At present, Rs 2 lakh is being given as compensation.
The announcement is likely to be made in Haveri, when Rahul will visit the district on Saturday.
Cooperation Minister H S?Mahadev Prasad said the measure will cost the exchequer an additional Rs 220 crore.
Interest, which is long overdue on short, medium and long-term loans taken by farmers from cooperative institutions, would be waived. This also means that the government would have to pay the interest component to banks on behalf of the farmer.
The government’s move has come following a direction by Rahul to Siddaramaiah to announce certain sops to the farmers. Rahul is in Karnataka on a two-day visit to console select family members of farmers who committed suicide recently.
He visited some family members of farmers in Mandya on Friday. “Farmers, who had taken loan but have not paid even interest would get relief. The cut off date for consideration will be August 31, 2015. Nearly 2.25 lakh farmers will be benefited. The principle amount is nearly Rs 536 crore, which the government will not waive,” said Prasad.
To a question by the media whether Rahul has directed the chief minister to waive the loan amount, the minister replied in the negative. “The direction is only to help farmers who are in distress. One way of helping is by clearing the long-standing interest,” he said.
There are about 78 lakh farmers in the State, and of these, 21 lakh farmers have raised loans from co-operative banks. As many as 14 lakh farmers have taken loans from commercial banks and the rest hand loans.
Only one-third of the farmers are dependent on co-operative banks. The principal amount is about Rs 12,000 crore, he pointed out.
Prasad said now the plan is to waive interest which has accumulated over the year up to August this year. And this benefit will be offered to those farmers who pay the principle amount before March 2016.
Another announcement likely to be made by the Siddaramaiah government is that revised norms for giving compensation to the family of farmers who have committed suicide.
The rules allow compensation to be paid provided agricultural land-holding is in the name of the farmer. This could be relaxed to help the family members, Prasad said.
It is estimated that 596 farmers have committed suicide in the State due to drought and financial distress. But compensation is given only after the government ascertains the reasons for death.
Addressing gram panchayat members in Bengaluru, Rahul said he has discussed about the farmers’ woes with the chief minister and his colleagues.
The chief minister will be announcing certain new initiatives for the welfare of farmers at a public meeting on Saturday, he added.
Rahul also said he has asked the chief minister to take steps to implement the Ramesh Kumar committee report on brining reforms in panchayat bodies.
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