Karnataka to seek farm loan waiver from Centre
Karnataka's Deputy Chief Minister G. Parameshwara announced that the state will seek a farm loan waiver from the Union government to assist farmers affected by drought. The state is preparing a memorandum to request central drought relief, citing the need for a comprehensive national approach.
Why it matters
Drought-induced agricultural distress is a major economic issue in India, often requiring coordinated financial intervention between state and central governments.
Deputy Chief Minister G. Parameshwara on Friday (August 28, 2026) said that Karnataka, which is set to submit a memorandum to the Centre seeking drought assistance, would also seek waiver of farm loans from the Centre.
Speaking to mediapersons in Bengaluru, Mr. Parameshwara, who also holds the Revenue portfolio, announced this when asked if the State government would waive farm loans to help farmers in distress owing to drought.
“The issue can be addressed comprehensively if the Union government itself announces a loan waiver. Parts of Andhra Pradesh, Telangana, Maharashtra, Uttar Pradesh and Bihar are also facing drought. Like the then Prime Minister Manmohan Singh, who had waived farm loans to the tune of ₹ 72,000 crore, any decision by the Centre now to waive farm loans could benefit farmers across the country. I will urge the Union government to consider this,” he said.
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