Karnataka govt to waive interest on overdue loans from district cooperative banks: CM

The Karnataka government has decided to waive interest on medium and long-term overdue loans from District Cooperative Central Banks and Junior Cooperative Agriculture and Rural Development Banks, Chief Minister Siddaramaiah said on Friday, claiming that this would benefit over 57,000 farmers.

Presenting the budget for 2024-25 in the Assembly, he said that the Agriculture Development Authority will be established under the leadership of the Chief Minister to promote effective implementation of policies related to agriculture and allied activities.

“Our government has decided to waive interest on medium and long-term overdue loans of DCC and Primary Cooperative Agricultural and Rural Development Bank (PICARD). This will benefit more than 57,000 farmers. Through this scheme, DCC/PICARD Bank will be able to recover loans up to Rs 496 crore. “Siddaramaiah said.

He said the government will provide financial assistance of Rs 450 crore to banks under the scheme as compensation. “This decision will significantly improve the financial position of these banks,” the chief minister said.

Siddaramaiah said it was decided to extend the loan limit for interest-free short-term loans from Rs 3 lakh to Rs 5 lakh in 2023-24 and similarly, to extend the limit for medium and long-term loans to Rs 5 lakh. The subsidized interest rate of 3% was increased from Rs 10 lakh to Rs 15 lakh. The target loan through the cooperative sector this year is Rs 27,000 crore, he said, adding that it would benefit more than 36 lakh farmers in the state.

The chief minister said that to encourage integrated farming, various schemes related to the agriculture sector will be consolidated and a new scheme called ‘Karnataka Raitha Samruddhi Yojane’ will be launched from this year. He added that a new scheme ‘Namma Millet’ will be launched under which processed and value-added millet will be provided at affordable prices.

The chief minister said that to promote sustainable agriculture in drought-affected and rain-fed areas of the state and help in soil and water conservation, 5,000 water bodies will be created within five years.

Siddaramaiah said that to promote processing, value addition and export of agricultural and horticultural products, a food park will be established near the airport through public-private partnership.

This year, these food parks will be set up at Sogane in Shivamogga district, Ittangihala in Vijayapura district and Pujenahalli village in Bengaluru Rural district, he told the assembly. He said that “Jishan Mall” will be opened in some areas to provide farmers with one-stop gardening-related technical guidance, market connectivity, agricultural tools and agricultural products and other services.

Siddaramaiah said that 40,000 hectares of land in the state are engaged in floriculture. To promote the sale and export of flower crops, Bengaluru city will set up a well-equipped commercial flower market of international standards through public-private partnership, he added.

He added that a “spice park” would be developed in Chikkamagaluru district through public-private partnership to encourage farmers to grow spices and promote spice exports.

The Chief Minister announced that to encourage women to take up dairy farming, an interest subsidy of 6% will be provided on timely repayment of loans taken for purchase of cows/buffaloes. He said a bill would be enacted to prevent atrocities against nomadic herders and their properties.

Siddaramaiah said the government also plans to invest Rs 3,000 crore in the coming years for comprehensive development of the fisheries sector. For emergency evacuation of fishermen in case of health emergencies and accidents, the state will induct its first sea ambulance at a cost of Rs 7 crore, the Chief Minister said.

He said the government appreciated the central government’s decision to confer the title of Bharat Ratna to Ms. Swaminathan in recognition of his contribution in the field of agriculture. “In the same spirit, we will ask the central government to calculate the MSP based on the formula of cost of cultivation plus 50 per cent profit as recommended by the Swaminathan Committee.”

(This story has not been edited by News18 staff and is published from associated news agency – PTI)