Karnataka CM Slams NABARD's Loan Cut

Karnataka Chief Minister Siddaramaiah criticized NABARD for slashing short-term loans for farmers by 58% this year. He urged Union Finance Minister Nirmala Sitharaman to intervene, warning that the decrease could push farmers towards high-interest commercial loans. Siddaramaiah also questioned the silence of local Union Ministers on the issue.

Karnataka Chief Minister Siddaramaiah voiced strong concerns on Friday over a 58% reduction in short-term loans to farmers by NABARD, calling it a grave injustice. Addressing a media briefing, Siddaramaiah said he had urged Union Finance Minister Nirmala Sitharaman to address the issue with NABARD and the RBI, both of which are under the Union Finance Ministry's purview.

Siddaramaiah revealed Karnataka's plan to distribute Rs 9,012 crore in short-term loans to farmers. He highlighted the necessity to seek commercial bank loans at high-interest rates if NABARD doesn't increase its contribution, which could exacerbate farmers' financial struggles.

He particularly rebuked Union Ministers Pralhad Joshi and H D Kumaraswamy for remaining silent, daring them to justify NABARD's decision. Siddaramaiah also criticized the BJP over its handling of the Food Security Act and BPL cards, pointing out discrepancies and inconsistencies in their policies.

(With inputs from agencies.)