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Karnataka Budget 2012: Zero interest on crop loans

Last Updated: Thursday, March 22, 2012 - 11:55

Bangalore: Karnataka government today
announced that rate of interest on short term crop loan of up
to Rs 1 lakh would be reduced to zero from 2012-13 even as it
provided Rs 19,660 crore for agriculture and related allied

Presenting the separate Agriculture Budget 2012-13 in the
Legislative Assembly, Chief Minister D V Sadananda Gowda noted
that the rate of interest on short-term loan up to Rs 3 lakh
raised through cooperative institutions was reduced to one per
cent during 2011-12.

"From 2012-13, the rate of interest will be reduced to
zero per cent for short term crop loan up to Rs 1 lakh",
Gowda, who also holds the Finance portfolio, said.

Noting that 75 per cent of state farmers are small and
marginal, and it is difficult for them to conduct timely
agricultural operations because of high cost of farm equipment
and scarcity of agricultural labour, he said the Agriculture
Department proposes to establish hire-service centres for the
farmers to hire tractor and other high-tech implements on
rental basis.

Gowda also said that with help of Israeli technology, it
has been proposed to establish high technology expert centres
for vegetable crop development in Belgaum, pomegranate in
Bagalkot and mango development in Kolar districts.

He also announced that a tur technology park in Gulbarga
district, maize technology park in Ranebennur, coconut
technology park including coconut products research and
development unit in Tumkur district`s Tiptur taluka would be

"This Agriculture Budget contains thinking on new
dimensions for integrated development of farmers and other
families engaged in agriculture and allied activities in our
state", the Chief Minister added.


Karnataka Budget 2012-13

First Published: Wednesday, March 21, 2012 - 13:15
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