BENGALURU: National Bank of Agriculture and Rural Development (NABARD) has significantly cut its short-term (Seasonal Agriculture Operation) (ST-SAO) allocation to Karnataka, said Cooperation Minister KN Rajanna.
Replying to a question by Congress MLC Dinesh Gooligowda on the allocations to Karnataka’s cooperation sector by NABARD during the question hour in Council on Tuesday, Rajanna said, “NABARD has allocated Rs 3,236 crore to Karnataka for 2024-25. During 2023-24, the allocation was Rs 5,600 crore. Compared to the previous allocation, the allocation is short by Rs 2,363 crore.”
“Only Rs 2,340 crore was allocated in 2024-25 and after the state government wrote a letter requesting more funds, an additional Rs 896 crore was granted,” Rajanna said.
NABARD is one of the major organisations allocating funds to the cooperation sector and the state had placed a request for allocation of Rs 9,200 crore. The Centre has reduced NABARD funds.
Chief Minister Siddaramaiah had met Prime Minister Narendra Modi to restore NABARD farm loans, Rajanna said, adding that there is hope that NABARD will allocate more funds to Karnataka.