Cut interest on crop loans: CM

By Our Staff Reporter

BANGALORE, AUG. 23. The Chief Minister, Mr. S.M. Krishna, today urged the cooperative banks, district cooperative banks and the Apex Bank, in particular, to consider reducing interest on crop loans to farmers by at least two per cent. He made the plea on behalf of the State's farmers who are reeling under a severe drought, and urged the banks to respond to the farmers' plight in their hour of need.

Mr. Krishna was speaking after inaugurating the administrative building of the Karnataka State Cooperative Apex Bank on Pampa Mahakavi Road here, built at a cost of Rs. 8.5 crores.

``I made this suggestion in the Budget speech earlier this year, and some banks had said they would be unable to extend this relief as they had suffered financial losses,'' Mr. Krishna said, adding, however, that in the present circumstances, farmers should be given all help possible.

While some district cooperative banks had suffered setbacks, others, like the Raichur bank, had recouped, and were stable now, for which the bank chairman and managing director were responsible. Other banks must take inspiration from such banks and emulate them, Mr. Krishna said.

He noted that Karnataka had made great strides in the cooperative sector, but there were several challenges ahead too, although the State and Union governments were making all efforts to meet the challenges.

The Home Minister, Mr. Mallikarjun Kharge, who was the chief guest at the function, urged the Apex Bank to conduct a survey of all district cooperative banks and other banks which were under loss, and help revitalise them.

The Minister for Water Resources, Mr. H.K. Patil, who pointed out that the cooperative movement in the State would complete its centenary in three years, called for introspection and a review of the milestones in the movement so far.

Mr. Patil said that till now only 40 per cent of the farmers in the State had taken advantage of assistance from cooperative banks. Sixty per cent of them were still opting for the more expensive commercial banks, he regretted, and wanted the cooperative banks to work for covering 80 per cent of the farmers under their schemes during the next three years.

The NABARD assistance for non-farming activities was taking it away from its main objective of serving the agriculture sector, he said.

The Minister for Cooperation, Mr. D.K. Shivakumar, presided over the function. The MLC and former minister Mr. M.C. Nanaiah, who has also been chairman of the Apex Bank, was felicitated on the occasion, along with the former minister, Mr. Gurupadappa Nagmarapalli.

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Section  : Southern States
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