The state Cabinet in a week will formally endorse the Rs 3,500 crore farm loan waiver scheme obtained from cooperative societies benefiting over 16.5 lakh farmers, including small and marginal, said Minister for Cooperation B J Puttaswamy here on Monday.
Addressing reporters, Puttaswamy reacted to the criticism by Opposition parties that the government’s loan waiver scheme is not yet materialised. He said that the cooperatives have already taken an initiative in this matter.
According to him, the Cabinet note on the scheme would be submitted to the Finance Department, which in turn will send it to Cabinet for its stamp of approval.
“The draft Cabinet note on the issue would be ready by Monday evening,” he said.
He said that the scheme would benefit as many as 16.5 lakh farmers. According to him, this will include about six lakh farmers in the category of zero per cent interest, 8.5 lakh farmers in the group of three per cent and rest of higher interest rate beyond 11.5 per cent.
“The Rs 25,000 farm loan waiver includes the interest component,” said Puttaswamy. Dismissing the charges that the farmers of Chikballapur, Kolar, Haveri, Gadag and Dharwad could not get the government’s gesture of loan waiver scheme, Puttaswamy said that the beneficiaries of the loan waiver scheme comprise farmers from all districts.
He informed that the state government while formulating the loan waiver scheme had also prepared an action plan to reimburse `3,500 crore to the co-operative societies from its exchequer. “The government will take all measures to protect the interests of the cooperative institutions, which are the backbone of rural and farm lending,” the minister said.
Puttaswamy, however, brushed aside JD(S) charges that the Karnataka Milk Federation (KMF) is under red. According to him, the minister said that the KMF had reported profit of `8.5 crore in June. According to Puttasawmy, the Union government’s decision to import milk power has hurt various Indian companies, including KMF. “With the Centre’s decision to reimpose the ban the demand for domestic product is increasing,” he said. Referring to the judicial custody of the KMF Chairman Somashekhara Reddy, the minister said, “He (Reddy) need not to resign. The routine businesses of the KMF has not been hampered because of Reddy’s arrest by the Andhra police,” he said.
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