Farm loans: Deadline extended by a month

Bangalore, Apr 5 (UNI) The Karnataka Government today announced extension of deadline by a month till April-end to repay the farm loan principal of Rs 25,000 without interest to get a waiver of the remaining Rs 25,000 principal and interest.

Making a suo motu statement in the Legislative Assembly, Deputy Chief Minister B S Yediyurappa, who also holds the Finance portfolio, said 13.63 lakh farmers, fisherfolks and weavers would be benefitted by the waiver, entailing a financial burden of Rs 1,950 crore.

It may be recalled here that Mr Yediyurappa, in his budget proposals presented on March 16, had announced waiver of crop loans to those farmers who had availed Rs 25,000 loan from cooperative institutions between April one, 2006, and December 31, 2006. Later, he had increased the upper limit of crop loans from Rs 25,000 to Rs 50,000 and clarified that farmers who repay the principal of Rs 25,000 without interest by March 31 would be eligible for waiver of the remaining Rs 25,000 principal and interest.

The Opposition had been demanding that the deadline be extended to June one as 19 districts were in the grip of drought. But, the Government had earlier ruled out any such extension.

Mr Yediyurappa announced waiving off of one year purchase tax for sugarcane growers from April 2007 to March 2008.

He said the Government would take suitable action to instruct the factory owners to make the payment directly to the farmers, who were in distress following crash in sugarcane price.

UNI