Bengaluru: Hours after swearing-in as chief minister of Karnataka BS Yeddyurappa announced a farm loan waiver to the tune of Rs 1 lakh as his first decision. The decision was taken in the first Cabinet meeting chaired by BS Yeddyurappa even as the Bharatiya Janata Party (BJP) is yet to prove majority.
Amid the intense agrarian crisis, farm loan waivers are popular political move, which experts see merely as a ‘quick-fix’. According to the Financial Express Online recently Sameer Narang, Chief Economist, Bank of Baroda was reported saying that farm loan waivers help, but temporarily. Moreover, it affects the credit system in the country.
The agrarian crisis in Karnataka is severe. Over 35,000 farmers committed suicide between April 2013 and November 2017, of which nearly 2,500 were suffering from crop failure and drought. The number of farmers’ suicide in Karnataka was second highest after Maharashtra, according to NCRB data.