Here's why Karnataka farmers are protesting despite the Rs 34,000-cr loan waiver

Farmers in Karnataka continue to protest even after Chief Minister HD Kumaraswamy announced a loan waiver of Rs 34,000 crore in his maiden budget.

Hundreds of farmers from all over the state arrived in Bengaluru to stage a protest on Monday.

Here's why the farmers are still protesting: 

> Complete loan waiver

The farmers are demanding a total waiver of farm loans that run to the tune of Rs 1.20 lakh crore. The loan waiver for distressed farmers was one of the key focus areas for the Chief Minister given that the JD(S) had promised to waive farm loans in its manifesto for the Karnataka assembly election.

"The waiver announced by the Chief Minister covers just a fraction of the lakhs of farmers who have obtained loans for agriculture. Kumaraswamy, who had assured a total waiver of farmers' loans to make them debt free, has failed to keep his word," Karnataka Rajya Raitha Sangha president Kodihalli Chandrashekar told The News Indian Express.

Also read — Karnataka Budget: Kumaraswamy’s loan waiver will make fuel, power expensive

Presenting his first budget as Karnataka's Chief Minister, HD Kumaraswamy had announced a waiver of farm loans totalling Rs 34,000 crore. The waiver will be applicable for farm loans of up to Rs 2 lakh, the chief minister said.

The Karnataka CM said he will credit the repaid loan amount or Rs 25,000, whichever is less, back to farmers' accounts to recognise the efforts of those farmers who cleared their dues on time.

The farmers are planning a massive rally in Haveri on July 21. "We will chalk out plans for an intense agitation if Kumaraswamy fails to respond to our demands," Chandrashekar said.

Also read — MSP hike an eyewash, Centre's claim misleading: Agriculture experts

> Implementation of Swaminathan Commission recommendations

Farmers have been demanding that the government implement the recommendations of the National Commission on Farmers, which was headed by MS Swaminathan, who is known for his pioneering role in India’s Green Revolution.

The key recommendation was that MSP be set at cost plus 50 percent. For instance, if the cost of production is Rs 100, MSP should be set at Rs 150.

"This should include implementation of the M S Swaminathan Committee report, big hike in minimum support price," Chandrashekar demanded.

Finance Minister Arun Jaitley in February, while presenting his fourth budget had announced that the government had decided to set MSP at 1.5 times the cost of production. However, farmer associations claim that the formula used for calculating the MSP was different and thereby the proposed MSP was still lower than the one recommended by the Swaminathan Commission.