Oppn in K'taka demands full waiver of farm loans

Bangalore, Mar 22 (UNI) The Karnataka Government today announced on the floor of the Assembly an increase in the upper limit of crop loans availed by farmers from Rs 25,000 to Rs 50,000 and clarified that farmers who repay the principal of Rs 25,000 without interest by March 31 will be eligible for waiver of the remaining Rs 25,000 principal and interest, amidst dharna and walk out by Opposition.

Making a suo motu statement, Deputy Chief Minister B S Yediyurappa, who also holds the Finance portfolio, said the benefit would cover over 13.63 lakh farmers, including nearly six lakh farmers who had availed a loan of Rs 25,000 and 1.18 lakh farmers in the between Rs 25,000 and Rs 50,000 category. This would also cover weavers and fisherfolks, he added.

He said the Government would incur a financial burden of Rs 1,950 crore in view of the decision and it would be met by curtailing unnecessary expenditure.

Earlier, Mr Yediyurappa, in his budget proposals presented on March 16, had announced waiver of crop loans to those farmers who had availed Rs 25,000 loan from cooperative institutions between April one, 2006 and December 31, 2006.

Leader of the Opposition N Dharam Singh and others took exception to the announcement and said the budget would lose its sanctity if the Deputy Chief Minister went on making such statements before the House discussed the budget in detail. They also demanded that the last date for repayment be extended up to June one instead of March end as 19 districts were in the grip of drought. At one stage, the Opposition leaders were locked in a heated argument with Speaker Krishna about giving permission to the Deputy Chief Minister to make such a statement.

While the Congress members staged a walk out, demanding full waiver of crop loans covering all farmers, Kannada Chaluvali Vatal Paksha leader Vatal Nagaraj, Janata Dal (United) leader J C Madhuswamy, Communist Party of India (Marxist) leader G V Srirama Reddy, RPI member Rajendran and independent member Jaiprakash Hegde staged a dharna in the well of the House. The Speaker adjourned the House for ten minutes.

UNI