Drought: Karnataka announces aid of ₹2,500 to 50 lakh farmers, moratorium on loan repayment

The Karnataka government on September 24 announced a one-time relief of ₹2,500 to farmers across the State in view of crop losses due to drought conditions. The government also announced a moratorium of 12 months for loan repayment, and all farm loans will get a loan period extension between 36 months and 60 months, based on the tenure.

The overall burden on the exchequer from the relief package is estimated to be ₹1,250 crore, and about 45 lakh to 50 lakh farmers are expected to benefit from it.

While Chief Minister D.K. Shivakumar announced that the State would share the burden of loan waiver if the Centre announces it, the Opposition BJP termed the State’s relief package “a pittance”.

The relief was announced by Deputy Chief Minister and Revenue Minister G. Parameshwara in the Legislative Assembly at the end of discussion on drought and farming distress during the four-day special session that also discussed the K. Kasturirangan Committee report.

The government has already declared 177 taluks as drought-affected, and another 50 taluks where ground truthing exercise is under way may join the list. Initial estimates made by the government, on losses caused by drought in the State, is pegged at about ₹40,000 crore.

“Anticipating funding from the National Disaster Relief Fund (NDRF), the government will provide every farmer a one time relief of ₹2,500 in the first phase,” the Deputy Chief Minister said.

Mr. Parameshwara said that micro finance companies had been warned of criminal action if they harassed farmers on repayment. Cooperation Minister Laxman Savadi told the House that strict instructions had been given against any forcible loan recovery proceedings against the farmers.

Mr. Parameshwara said that as 17 to 18 States are facing drought, the State government will also appeal to Prime Minister Narendra Modi to declare drought as a national disaster.

Responding to the announcements, Leader of Opposition R. Ashok, who had earlier sought a loan waiver for the farmers, termed the relief amount as “pittance”. He said the government had failed to understand the ground reality of drought. “Daily wages in the State range between ₹600 and ₹1,200, and the relief announced is insignificant. You cannot get even half a quintal of ragi,” Mr. Ashok said.

In protest against “meagre compensation”, about a dozen Opposition legislators, who were present in the House, staged a walkout.