As governments of Uttar Pradesh, Andhra Pradesh, Madhya Pradesh, Telangana and Maharashtra agree to the demands of farmers for a complete loan waive off, it is building pressure on other governments also.
Karnataka chief minister Siddaramaiah is also facing the challenge to waive off ₹50,000 crore farmer loans. It has become all the more crucial to take the decision, as it will also be impacting the assembly polls due next year. Congress Vice President Rahul Gandhi is believed to have pushed Siddaramaiah to waive off the loans, however the CM, who also holds the finance portfolio is of the belief that such decisions discourages repayment by farmers and benefits defaulters.
Rahul Gandhi at a party meeting praised Siddaramaiah’s governance saying that “BJP has abandoned the farmer. It is very important that the Karnataka government assists them. I am confident the CM here constantly listens to them and helps them.” Another party leader stated that the CM should waive the loans.
However, Siddaramaiah has not made his stand clear yet, but he is under pressure to yield on farm loans, particularly because the (Congress-led) UPA had waived loans of Rs 72,000 crore in 2008.”
Party state president BS Yeddyurappa has announced that he will go on a fast from July 7-9 if the state government does not waive loans.
To tackle the situation the CM is hoping to get help from the centre. Siddaramaiah has written two letters to the PM Narendra Modi and Finance Minister Arun Jaitley waive the loans that Karnataka farmers have taken from nationalised banks. He said he would waive off the rest of the loans taken from cooperative banks.
A minister said that, unless the centre steps in to help, it is going to be very difficult for the states who have announced a complete loan waiver.