Drought relief: Karnataka announces one-time aid of ₹2,500 to about 50 lakh farmers, moratorium of 12 months for loan repayment

The Karnataka government on Thursday announced a one-time relief of ₹2,500 to farmers across the State in view of crop losses due to drought conditions. The government also announced a moratorium of 12 months for loan repayment, and all farm loans will get a loan period extension between 36 months and 60 months, based on the tenure.

The overall burden on the exchequer from the relief package is estimated to be ₹ 1,250 crore, and about 45 lakh to 50 lakh farmers are expected to benefit from it.

While Chief Minister D.K. Shivakumar announced that the State would share the burden of loan waiver if the Centre announces it, the Opposition BJP termed the State’s relief package “a pittance”.