In a copycat move to appropriate populism as indulged in by Bhartiya Janata Party (BJP)-run states, Karnataka Chief Minister Siddaramaiah has decided to waive loans given to farmers up to Rs 50000, reports Media Report.
The waiver, however, will be applicable only on the loans acquired from cooperative banks.
The state govt. move will benefit more than 22 lakh farmers reeling under debt following a severe drought in the state.
A source close to a cooperative bank said short term political considerations are trumping sound economic dense.