Cut in NABARD loan to Karnataka: CM Siddaramaiah meets Finance Minister Nirmala Sitharaman in Delhi

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12 months ago News Desk

New Delhi: Chief Minister Siddaramaiah submitted a letter to Finance minister Nirmala Sitharaman regaridng Lower allocation of Short Term Agricultural Credit Limit (ST-SAO) at concessional rate of interest by NABARD for the seasonal Agricultural operation for the year 2024-25.

With reference to the subject stated above we wish to bring to your notice that Government of Karnataka has set a target of disbursing Short Term Agricultural loans of Rs.25,000 cr to 35 lakh farmers for the year 2024-25. Through the short term Co-Operative Credit structure during the year 2023-24 short term Agricultural loans of Rs.22,902 cr have been disbursed in the State of Karnataka.

The Karnataka State Co-Operative Apex Bank Limited has requested and sent a proposal to NABARD to sanction SAO limit of Rs.9,162 cr for the year 2024-25 on behalf of Short Term Co-Operative Credit Structure. The SAO limit sanctioned by NABARD for the State of Karnataka for the last five years is as follows;

For the year 2023-24 NABARD has sanctioned SAO concessional limit of Rs.5,600 cr. For the year 2024-25, as against the Applied Limit of Rs.9,162 cr NABARD has sanctioned SAO concessional Agricultural loan limit of only Rs.2,340 cr which is 58% less compared to last year. NABARD has told us that the reason for reduced limit this year is because RBI has allocated less under General Line of Credit.

Karnataka has received very good monsoon rains and the farmers are demanding to enhance the disbursement of SAO loans for their agricultural co-operations. The drastic reduction in sanctioning SAO loan limit to Karnataka will drastically hamper the disbursement of short term agricultural co-operation loans in Karnataka for the year 2024-25.

In view of above facts please direct NABARD and RBI to enhance Short Term Agricultural Loans limit for the year 2024-25 in the interest of farmers and ensure to help normal food grains production in Karnataka.

-Team Mysoorunews