HASSAN: The Deputy Chief Minister, Siddaramaiah, regretted that banks that are enthusiastic to extend credit facility to industrial and service sectors are averse to showing a similar gesture to the farming sector. As a result, the flow of credit to the agriculture sector is not up to expectations.

Inaugurating the Krishi Mela jointly by the district administration, the zilla panchayat, the Departments of Agriculture, Horticulture, Sericulture, and Animal Husbandry here on Sunday, he said that cooperative banks are as indifferent to the agriculture sector as nationalised banks.

Lower interest rate

Financial institutions are willing to extend loans to industries and the service sector at a lower rate of interest and are prepared to write off debts by declaring them part of their non-productive assets (NPA). Loans worth Rs. 62,000 crores have been extended to the industrial sector, he said.

The agrarian crisis has not become an issue in the academic circle so far and financing the farming sector is not a lucrative proposition for these financial institutions, he added.

Claiming credit for addressing farmers issues, Mr. Siddaramaiah said that the coalition Government has directed cooperative banks to extend farm credit at the rate of 6 per cent and has earmarked Rs. 450 crores to waive the interest and penal interest on crop loans. It is imperative for any pro-people Government to gain the confidence of farmers, he said.

Global competition

He called upon experts in agriculture and veterinary universities and other agriculture research institutions to create a level playing field for farmers to compete with those in other countries.

To make agriculture a profitable proposition in the future, the coalition Government has earmarked more funds for research and development in the sector in the budget. It is responsibility of agricultural universities to guide farmers on a day-to-day basis on improving the farming sector, he said.

Stating that the Government is hesitant to spend more money on the agriculture sector, Mr. Siddaramaiah said that government departments connected to agriculture should win the confidence of farmers. He also said that the Government is making efforts to make crop insurance more effective and is committed to settling the claims of farmers.

Development plan

Addressing the farmers gathered at the mela, the former Prime Minister and Hassan MP, H.D. Deve Gowda, appealed to the Minister of Agriculture, K. Sreenivasa Gowda; the Minister for Horticulture, R. Sreenivas; the Minister for Sericulture, C. Chennigappa; and the Minister for Animal Husbandry, Mirajuddin Patel, to come up with a comprehensive development plan to improve the condition of farmers. "A holistic approach is the need of the hour to prepare the farming community to face the challenges of globalisation," he said.

Citing the example of a farmer in the district who reportedly committed suicide as he was unable to repay a loan, Mr. Gowda said that though the farmer had borrowed Rs. 4,000 to rear sheep, it swelled to Rs. 42,000 in nine years. When the bank issued a notice to him, he committed suicide as he unable to repay the loan.

For this reason, he said, interest on loans taken by farmers should be waived. Commending the Minister for Revenue and in charge of the district, H.D. Revanna, for organising the Krishi Mela, he called upon the farmers to make best use of such an opportunity.

The Minister for Agriculture, K. Srinivasa Gowda, who expressed discontent over the discrimination of the dry land regions of the State, appealed the Deputy Chief Minister to earmark Rs. 200 crores to set up an Agriculture Development Corporation.

He said the Government, which is prepared to spend Rs. 20,000 crores for completing works in the Krishna and Cauvery basins, should be prepared to spend Rs. 200 crores for the development of the Bayaluseeme region. He said that the setting up of a corporation will help encourage agricultural activity in the dry land areas.

Speaking to presspersons after the inauguration of the Krishi Mela, Mr. Siddaramaiah said that the Government has the political will to end the illicit liquor trade in the State. He said the Government will take action against those involved in the illicit liquor trade and that they will be booked under the Goondas Act.

Presidential assent

He said that the Government is waiting for Presidential assent for the Bill to treat excise offences as non-bailable.

On the implementation of value added tax (VAT) in the State, he said that trade associations are cooperating with the Government and there is no problem in implementing the new system.

With the implementation of VAT, the circulation of black money can be controlled effectively and the State will be benefit to a larger extent, he said.

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