The Hindu : Karnataka News : Farm loans: State owes Rs. 300 crore to banks

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Karnataka

Karnataka

Farm loans: State owes Rs. 300 crore to banks

Staff Correspondent

MANGALORE: The State Government owes Rs. 300 crore to primary agriculture credit cooperative societies and district central cooperative banks for various agriculture loans and interest waiver schemes announced by it up to March 2008. The Union Government too owes Rs. 23 crore to Karnataka for similar schemes announced by it, president of the Karnataka State Apex Cooperative Bank Limited M. N. Rajendra Kumar has said.

Mr. Kumar, who addressed presspersons here on Wednesday, said the State Government had announced waiver of crop loans up to Rs. 25,000 and interest on it for farmers who cleared their old dues.

The Government had agreed to refinance the difference in interest rates charged by the banks against what the farmers were actually charged.

While the banks charged 11.5 per cent, the Government provided loans at four per cent to farmers.

The Union Government too had agreed to provide two per cent rebate on agricultural loans for 2006-07, he said and added that the State was supposed to receive Rs. 23 crore on this count.

The share of Dakshina Kannada district in this was Rs. 4.36 crore, he said and added that the State was yet to receive this amount.

The Centre was also yet to announce the amount due to the State for 2007-08 under this scheme, he noted.

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