Karnataka Seeks Increased Agricultural Loan Limit Amid NABARD Reduction

Karnataka CM Siddaramaiah requested Union Finance Minister Nirmala Sitharaman to increase the SAO loan limit, citing a significant cut by NABARD. He stressed the necessity to disperse Rs 25,000 crore to 35 lakh farmers next fiscal year, amid reduced allocations due to a lower RBI credit line.

Karnataka Chief Minister Siddaramaiah has called upon Union Finance Minister Nirmala Sitharaman to intervene and raise the Short Term Agricultural Loans (SAO) limit for fiscal year 2024-25. This appeal comes in response to a drastic reduction in the proposed loan allocations by NABARD, which sanctioned only Rs 2,340 crore against the state's request of Rs 9,162 crore.

In a meeting at the North Block, Siddaramaiah highlighted that the state is striving to disburse short-term agricultural loans amounting to Rs 25,000 crore to aid 35 lakh farmers in the coming year. This is against a backdrop of the previous year's disbursement of Rs 22,902 crore through cooperative credit structures.

The state government voiced concerns that the significant cut in SAO loans could hamper agricultural efforts, possibly affecting food grain production. NABARD has attributed the allocation reduction to a decreased General Line of Credit from the Reserve Bank of India. Meanwhile, Karnataka's favorable monsoon has farmers hopeful for increased loan distribution assistance.

(With inputs from agencies.)