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Farmers to get interest free loans up to Rs 1 lakh

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BS Reporter Chennai/ Bangalore
Last Updated : Jan 20 2013 | 3:11 AM IST

Karnataka chief minister D V Sadananda Gowda on Wednesday emulated his predecessor B S Yeddyurappa in presenting a separate budget for agriculture sector in the country. The main highlight of the budget is a proposal to give interest free farm loans through cooperative credit institutions in the fiscal 2012-13.

There will be no interest for short term crop loans up to Rs 1 lakh during the next fiscal commencing April 1, 2012. Former chief minister Yeddyurappa had brought down the rate of interest on short-term crop loans up to Rs 3 lakh to 1 per cent for the present fiscal 2011-12.

The overall size of the Agriculture Budget for 2012-13 has been enhanced to Rs 19,660 crore compared to Rs 17,857 crore earmarked for the present fiscal, showing a rise of 10 per cent.

“Our state had to face natural calamities and environmental constraints during 2011-12. Despite this, our government formulated several innovative schemes last year and successfully implemented them for the development of agriculture and allied sectors. Despite the drought conditions, the foodgrain production was 92 per cent of the target at 12.42 million tonnes,” Gowda said.

The government has decided to continue all programmes taken up by the previous government like Suvarna Bhoomi Yojane, Bhoochetana, organic farming and development of biofuel besides expanding the scope of some programmes. The chief minister has emphasised credit facility at a low rate of interest, cluster villages, area-based programmes, programmes to increase productivity in dryland farming, supply of nutrients through scientific methods in irrigated lands to increase productivity. Doubling of buffer stock of fertiliser to 800,000 tonnes, reforming market systems with assistance of NCDEX, value addition in the field of horticulture and animal husbandry.

During 2012-13, the government has proposed to implement schemes under Upper Krishna project 3rd stage and rehabilitation works. The chief minister has proposed Rs 5,500 crore provided for rural energy subsidy, including free energy for IP sets up to 10 HP.

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The government has set a target of 13.65 million tonnes of foodgrain and 1.52 million tonnes of oilseeds production next year.

The total outlay for the agriculture department has been fixed at Rs 2,921 crore. Of this, Rs 110 crore is allocated for Bhoochetana, Rs 200 crore for organic farming, Rs 100 crore for disbursement of seeds subsidy, Rs 50 crore each for Raitha Samparka Kendras and biofuel scheme. The government has allocated Rs 30 crore for revival of Mysugar Company, Mandya.

Among other sectors, the Budget has proposed to spend Rs 867 crore for horticulture, Rs 989 crore for animal husbandry, Rs 215 crore for fisheries, Rs 293 crore for sericulture, Rs 634 crore for cooperation. It is proposed to increase the Revolving Fund from Rs 650 crore to Rs 1,000 crore. For water resources department, the budget has been fixed at Rs 10,500 crore.

Establishment of the Tur Technology Park in Gulbarga, Maize Technology Park in Ranebennur and Coconut Technology Park in Tiptur under public-private partnership are some of the major highlights of the Agriculture Budget for next year.

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First Published: Mar 22 2012 | 12:10 AM IST

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