Bengaluru, 1 June

State MLC Dinesh Gooligowda wrote a letter to the top brass of the Karnataka government asking it to bear the costs if any additional costs the NABARD incurs. 

In the letter, he said that if the Apex Bank is to borrow beyond what the National Bank for Agriculture and Rural Development (NABARD) has allocated, it would have to pay an addition 4 per cent interest.

“Last year, NABARD provided RS 5,450 crore loan to the State Apex Bank at 4 per cent interest rate,” he wrote. “This facilitated district Apex and DCC Banks to provide loans to farmers. However, this time NABARD has limited the loan amount to the Apex Bank at 4 per cent interest to Rs 2,700 crore.

“For the Agriculture Department to meet its sowing targets, it is necessary to provide farmers with adequate credit facilities at zero interest rates in a timely manner,” he said. 

He said this will enable the State's Apex, DCC Banks and Primary Societies to conduct business sustainably and provide necessary services to farmers.