Karnataka CM Criticizes NABARD Loan Cuts Amid Farmer Discontent

Karnataka Chief Minister Siddaramaiah has criticized the Central Government for reducing NABARD loans to the state, labeling the move as unjust to farmers. The cuts, amounting to 58%, have forced reliance on commercial banks with higher interest rates. Siddaramaiah seeks intervention from Prime Minister Modi and Finance Minister Sitharaman.

Karnataka Chief Minister Siddaramaiah has voiced strong dissatisfaction with the Central Government over a significant reduction in loans from the National Bank for Agriculture and Rural Development (NABARD) to the state. The Chief Minister expressed his grievances in a post on X, emphasizing the unfairness towards farmers who now face increased financial burdens.

Siddaramaiah highlighted that NABARD's short-term loan offerings have been slashed from Rs 5,600 crore last year to Rs 2,340 crore this year, marking a 58% reduction. He stressed that these cuts contradict the usual trend of increasing loan amounts and place an unwelcome strain on farmers needing to turn to commercial banks with 10-12% interest rates.

In a meeting with Union Finance Minister Nirmala Sitharaman, Siddaramaiah urged the enhancement of short-term agricultural loan limits for 2024-25 to support normal food grain production. He also reiterated the state's commitment to providing lower interest rates on various loan schemes to alleviate the financial pressure on farmers.

(With inputs from agencies.)