1. Loan waivers and relief: In 2008, the Government of Karnataka waived the principal amount of outstanding loan to all farmers up to Rs 25,000 and waived the interest to those who have borrowed. above Rs 25,000, if they pay the principal amount before 31 March 2008.
2. Exorbitant Interest Rate Act-2004: The Government of Karnataka has enacted the Karnataka Prohibition of Levying of Exorbitant Rates of Interest Act, 2004, to check levying exorbitant rates of interest by private money lenders.
It has provisions for taking stringent action against those money lenders who violate the Money Lenders Act and levy exorbitant interest. Any such violation would attract imprisonment up to three years and a fine of Rs 30,000 or both.
G.K. Veeresh Committee came out with a series of recommendations such as:
- The creation of, farmer’ ** fund,
- Establishment of nodal department for the *** of farmers,
- Social security measures and so on.
Following this, the Government of Karnataka had taken a series of steps in the distress, in consultation with the members of the Committee.
These are listed below:
a. Health Insurance Scheme for the farmers, namely Yeshaswini was put in place and the farmers had direct access to the best medical facilities available in the State-run hospitals. This has significantly reduced the expenditure of farmers on health.
This has been introduced throughout the rural region of Karnataka in 2000 for a premium payment of Rs 120 per year per family. Participants are covered for all surgical interventions and for outpatient services at any of the designated network hospitals.
b. The interest rates on loans from Co-operative banks were reduced to 6% per annum. Reduction of the interest rate reduced to 4% per annum in the 2007- 0.8. These loans significantly helped the farmers.
c. Review of compensation policy to the family of the victims (who have committed **) was thoroughly reviewed and compensation was allowed only in the case where ** was directly related to the farming activities.
d. Information facility to Rayat Samparka Kendras were provided internet access and telephone facilities, so that the initial signals of distress were transmitted directly to the state headquarters. Similarly, in the extension wing of the Department of Agriculture Telephone links were established to reach the concerned official with ease.
e. Crop insurance was taken up to Hobli level and compensation provided to the farmers based on the Hobli level data.
f. Scheme on seed subsidy was announced and farmers were provided seeds with a subsidy of up to 50%.
g. Waters led development programme: The investment on watershed development programmes was increased tenfold and that created increased employment opportunities in the rain-fed areas.
h. The Market Intervention Scheme: This scheme was reviewed and the corpus fund for the scheme was increased to rupees three billion. Similarly, the market intervention scheme was made operational at the regulated market yard.
i. Priority to agricultural Research: Agricultural Universities were directed to focus on research and development responding to the demand, rather than providing the ‘supply driven’ research priorities.
