Tue Nov 12 15:45:47 UTC 2024: ## Karnataka Minister Condemns NABARD’s Reduced Advance for Farm Loans

**Hubballi, November 12, 2024:** Karnataka’s Minister for Textiles, Sugar, Sugarcane Development and Agricultural Marketing, Shivanand Patil, has strongly criticized the National Bank for Agriculture and Rural Development (NABARD) for reducing the quantum of advances with interest subsidy, calling it detrimental to the state’s farm sector.

Speaking at a press conference in Hubballi, Patil emphasized the dependence of approximately 30 lakh farmers in Karnataka on District Central Cooperative (DCC) banks for loans. He argued that NABARD’s reduced advances would significantly impact the loan-extending capacity of these banks, hindering the growth of the agricultural sector.

Patil further highlighted that while some DCC banks are financially stable, many rely heavily on NABARD for extending farm loans. He expressed concern that a reduction in NABARD’s advances would cripple the ability of DCC banks to provide crucial financial support to farmers.

The Minister pointed out that even though the government aims to provide farm loans to all farmers through cooperative banks, the reduced advances would jeopardize this objective. He criticized the recent decline in the percentage of advances from 40% to 20% since the BJP came to power in the Centre, calling it a cause for concern.

Patil also expressed disappointment with the newly established cooperative ministry by the central government, stating that it has not provided any benefit to the states. He stressed the urgent need for financial assistance to farmers through farm loans, particularly during this critical period for agricultural activities.

The Minister stated his intention to raise this issue with Chief Minister Siddaramaiah and explore the possibility of forming a delegation from southern states to bring the matter to the attention of the central government. He asserted that the reduction in advances would have severe repercussions for all stakeholders in the agricultural sector.

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