K'taka Budget 2012: Zero interest on short term crop loans

Posted By: Ria
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DV Sadananada Gowda
Bangalore, Mar 21: With keeping in focus the development of the state, Karnataka government on Wednesday, Mar 21, has declared that the rate of interest on short term crop loan would be reduced to zero up to Rs 1 lakh from 2012-2013. While the BJP ruling government has provided Rs 19,660 crore for the agriculture and related allied activities. [Read: Karnataka Budget 2012: List of prices gone up and down]

"From 2012-13, the rate of interest will be reduced to zero per cent for short term crop loan up to Rs 1 lakh", Gowda said. [Read: Karnataka budget 2012:Rs 5,500-crore fillip for roads, metro]

While presenting the seperate Agriculture Budget 2012-13 in the Legislative Assembly, Karnataka Chief Minister DV Sadananada Gowda mentioned that the rate of interest on short-term loan would be up to Rs 3 lakh raised through cooperative institutions was reduced to 1 per cent during 2011-2012.

Over 75 per cent of the state farmers are small and marginal and due to the high cost of farm equipment and scarcity of agricultural labour, it is pretty difficult for the farmers to carry on timely agricultural operations.

While it has been found that the Agricultural department has proposed to establish hire-service centres for farmers to hire tractor and other high-tech implement on rental basis.

In the budget, it has been proposed to establish high technology expert centres for vegetable crop development in Belgaum, pomegranate in Bagalkot and mango development in Kolar districts.

"This Agriculture Budget contains thinking on new dimensions for integrated development of farmers and other families engaged in agriculture and allied activities in our state", he added.

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