Active Stocks
Thu Mar 28 2024 15:59:33
  1. Tata Steel share price
  2. 155.90 2.00%
  1. ICICI Bank share price
  2. 1,095.75 1.08%
  1. HDFC Bank share price
  2. 1,448.20 0.52%
  1. ITC share price
  2. 428.55 0.13%
  1. Power Grid Corporation Of India share price
  2. 277.05 2.21%
Business News/ Politics / Policy/  Karnataka to release package for farmers this week
BackBack

Karnataka to release package for farmers this week

The decision comes in the wake of rising criticism against the govt over its alleged failure in stopping farmer suicides

Chief minister Siddaramaiah made the promise to farmers during Congress vice-president Rahul Gandhi’s public rally through drought-hit farmlands in north Karnataka’s Haveri district on Saturday, the day Gandhi’s two-day visit to the state came to an end. Photo: AFP Premium
Chief minister Siddaramaiah made the promise to farmers during Congress vice-president Rahul Gandhi’s public rally through drought-hit farmlands in north Karnataka’s Haveri district on Saturday, the day Gandhi’s two-day visit to the state came to an end. Photo: AFP

Bengaluru: The Congress-led government in Karnataka is likely to issue a government order (GO) on Wednesday to increase the ex-gratia amount to be given to families of farmers who commit suicide from 2 lakh to 5 lakh, and to waive off penal interest on farmer loans taken from co-operative banks.

Chief minister Siddaramaiah made the promise to farmers during Congress vice-president Rahul Gandhi’s public rally through drought-hit farmlands in north Karnataka’s Haveri district on Saturday, the day Gandhi’s two-day visit to the state came to an end.

The decision comes in the wake of rising criticism from farmer unions and Bharatiya Janata Party (BJP)-led opposition against the government over its alleged failure in stopping farmer suicides this year.

“A GO will be issued on Wednesday to increase the compensation. Already we have announced an interest waiver, now we will issue an order to allow a one-time settlement to waive off the penal interest of co-operative (bank) loans if the farmer pays the principal amount," said minister of co-operation and sugar H.S. Mahadeva Prasad.

The minister said about 2.10 lakh farmers have outstanding loans amounting to 536 crore in the cooperative sector overseen by the state government. The interest waiver comes with a financial burden of 220 crore and has been sanctioned by the finance department, Prasad said.

During the rally, the chief minister also promised three other incentives for farmer—revision of guidelines to extend ex-gratia amount to families of tenant farmers who commit suicide, to increase the widow pension for wives of deceased farmers from 500 to 2,000 and to provide a pension of 2,000 if a woman in a farmer family commits suicide.

According to Prasad, action will be taken on these decisions within a week’s time.

The sub-par monsoon that ended on 30 September with 14% rainfall deficit has hit Karnataka hard, along with other regions like Marathwada in Maharashtra. The state government declared drought in 136 administrative units last month—so far the only Indian state to do that—and has sought 3,050 crore from the central government for relief work.

Karnataka has also witnessed the highest number of farm suicide deaths in a decade; more than 500 farmers have killed themselves so far this year, according to data from the state farm ministry.

But awarding compensation to deceased farmers’ family is considered to be a slow and tedious process in Karnataka, much like it is in other states. The farm ministry’s data shows that only 233 claims were considered for providing compensation until September, and out them only 42% have been awarded compensation so far.

Mint had reported on 10 October that Karnataka is planning farmer loan waiver and other incentives to address farm distress in the wake of Gandhi’s visit.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

Catch all the Politics News and Updates on Live Mint. Download The Mint News App to get Daily Market Updates & Live Business News.
More Less
Published: 12 Oct 2015, 01:29 PM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App