For long, Chief Minister Siddaramaiah has engaged in a verbal duel with the BJP on relieving the state’s drought-hit farmers of their debt burden. He is now seriously considering a farm loan waiver in his forthcoming budget to stump the BJP.
Siddaramaiah has already expressed his readiness to waive 50% of the farm loans obtained by farmers through co-operative banks if the Union government does so on farm loans obtained through nationalised banks. But it looks like he may make the first move and roll out a modest farm loan waiver scheme in his record 12th budget in mid-March, without waiting for any reciprocal gesture from the Narendra Modi government.
In the battle of perceptions, he may gain the upper hand if he goes ahead. But it is the economics that will now need deft management.
About 23 lakh farmers have obtained farm loans totalling about Rs 10,500 crore through co-operative banks. The figure is much higher for nationalised banks that have offered loans worth Rs 42,000 crore to about 33 lakh farmers in the state.
Siddaramaiah, who had a pre-budget interaction with a delegation of farmers and their representatives on Thursday, was flooded with a slew of demands with farm loan waiver at the top of the demand chart.
With Assembly polls just 14 months away, the forthcoming budget would be seen as a poll-oriented one for Siddaramaiah and is expected to be loaded with populist programmes. According to sources, the Chief Minister has asked the Finance Department officials to work out the estimates for a modest farm waiver scheme. He will take a final call depending on the availability of resources.
Chief Minister Siddaramaiah’s keen interest to roll out a scheme to waive farm loans up to Rs 20,000 or Rs 25,000 limited to small and marginal farmers, is being seen as a possible master stroke to stump the BJP, as the Modi government at the Centre has failed to come to the rescue of farmers in the state who are in dire straits due to severe drought.
The move could take the wind out of the sails of BJP, which is on the offensive against Siddaramaiah government and is bragging about coming to power in 2018.
Kuruburu Shantakumar and other farmer leaders, who had a long interaction with Siddaramaiah on Thursday, are also optimistic about the Chief Minister fulfilling the demand. “The Chief Minister showed keen interest to incorporate a loan waiver scheme in the budget. He was seen doing the calculations at the meeting on the cost estimates and resource constraints to roll out the scheme.
We are confident of getting some relief from the farm loan burden,” Shantakumar told Express.
The delegation also demanded curb on the rampant illegal sale of liquor in rural areas and scientific Minimum Support Price for agriculture produce based on the cost of production and minimum profit margin.