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Karnataka plans to expand agricultural lending in the cooperative sector

Chintu Das
Chintu Das
Women Farmers

Karnataka has hiked its agriculture lending target in the cooperative sector by around 14% this fiscal year over 2020-21 in order to assist farmers who are suffering as a result of the COVID-19-induced shutdown.

Earlier this week, Chief Minister B.S. Yediyurappa announced that a total of Rs 20,810 crore would be provided to nearly 31 lakh farmers this year, up 13.97 percent from 2020-21, when a total of Rs 17,901 crore was disbursed to around 26 lakh farmers. 

While 30.26 lakh farmers will receive a total of Rs. 19,370 crore in zero-interest short-term loans, roughly 60,000 farmers will receive Rs. 1,440 crore in 3 percent-interest mid-term and long-term loans, according to the Chief Minister. 

He was addressing at Raitha Spandana in Bengaluru, during the launch of the Bengaluru District Central Cooperative Bank's agriculture loan disbursal. 

Agriculture loans worth Rs 17,901 crore were disbursed in 2020-21, exceeding the objective by 114 percent. While about 25.6 lakh farmers received approximately Rs 16,641 crore in short-term loans, approximately 52,000 farmers received approximately Rs 1,260 crore in mid-term and long-term loans. 

“With the COVID-19 situation in mind, we set a greater goal. We are a government that supports farmers. Agriculture, health, and education are among Mr. Yediyurappa's top priorities. 

The government had set a goal of providing a total of Rs 1,400 crore in loans to approximately 40 lakh self-help groups, with 6,700 groups receiving Rs 233.33 crore by the end of May. 

Yediyurappa told that the government is aware of the issues faced by farmers and other groups as a result of COVID-19. “As a result, the cooperative sector's repayment period has been extended by three months. 6.17 lakh farmers and 8.15 lakh members of 65,000 SHGs will profit from this, he said. 

The Chief Minister said that under the Centre's Atma Nirbhar scheme, 930 godowns managed by Primary Agriculture Cooperative Society (PACS) across Karnataka are being renovated at a cost of 316 crore. 

He stated that Rs 6.4 crore has been authorized for the construction of 18 PACS with a storage capacity of 2,500 metric tonnes in Ramanagaram, Bengaluru Rural and Urban districts. 

S.T. Somashekar, Minister of Cooperation, was also present at the occasion. 

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