Karnataka CM Seeks Higher Farm Loans: Meets Sitharaman

New Delhi, Nov 21 (PTI) Karnataka Chief Minister Siddaramaiah met Union Finance Minister Nirmala Sitharaman on Thursday, urging her to intervene and increase the Short Term Agricultural Loans (SAO) limit for the fiscal 2024-25.

In the meeting held at North block, the chief minister highlighted a sharp decline in the proposed loan allocation by NABARD, which has sanctioned only Rs 2,340 crore against the state's applied limit of Rs 9,162 crore, a 58 per cent reduction compared to the previous year's Rs 5,600 crore.

Presenting a detailed representation, Siddaramaiah emphasised that Karnataka aims to disburse short-term agricultural loans worth Rs 25,000 crore to 35 lakh farmers in 2024-25. In 2023-24, the state has already disbursed Rs 22,902 crore through the cooperative credit structure.

The state government said that the drastic reduction in the SAO loan limit could significantly impede agricultural cooperation and potentially disrupt food grain production. NABARD attributed the reduced allocation to a lower General Line of Credit from the Reserve Bank of India (RBI).

With Karnataka experiencing favourable monsoon conditions, farmers are eagerly awaiting enhanced loan disbursement to support their agricultural activities.

Siddaramaiah has requested Sitharaman to direct NABARD and RBI to reconsider and expand the short-term agricultural loan limit.

Karnataka Urban Development Minister Byrathi Suresh and Agriculture Minister Cheluvarayaswamy accompanied the CM.