The Hindu : Karnataka News : ‘Budget will also help industries’

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Wednesday, Mar 05, 2008
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Karnataka

Karnataka

‘Budget will also help industries’

Staff Correspondent

’Loan waiver will help industries producing irrigation equipment’
Nearly 40 per cent of farmers borrow from private lenders: survey

Chitradurga: The Union Budget may appear to be populist, but it is a systematic and planned budget aimed at helping the industrial sector, said secretary of the All India Regional Rural Bank Employees’ Association S. Venkatesh Reddy.

Speaking at a convention of the Pragati Gramin Bank Employees’ Association here on Sunday, he said the massive waiver of agricultural loans would not only help farmers but also industries.

Mr. Reddy said the waiver would in turn benefit companies involved in manufacturing irrigation equipment and fertilizers. Referring to a survey, he said nearly 40 per cent of farmers in the country borrowed money from private lenders, which was a major cause of concern and the main reason for farmers’ suicides. “Who will waive the loans of farmers who have taken credit from moneylenders,” he asked. Mr. Reddy said there were various reasons for farmers’ suicides including non-availability of seeds, lack of irrigation facilities and expensive fertilizers. “But a few economists are projecting the credit aspect as the main cause for farmers’ suicides,” he said. Honorary president of the association S. Revanna was present.

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