BELAGAVI: Karnataka Chief Minister Siddaramaiah on Tuesday disclosed that the state has suffered a Rs 2,185-crore cut in low-interest National Bank for Agriculture and Rural Development (NABARD) funding for 2024–25, dealing a blow to the state’s agricultural credit system.
While Karnataka was entitled to Rs 5,600 crore from the Centre-backed NABARD, only Rs 3,415 crore has been released so far, the CM informed the Assembly on Tuesday.
Replying to a question raised by Kunigal MLA Dr HD Ranganath during the Question Hour, Siddaramaiah said that the funding shortfall has severely affected the disbursal of subsidised farm loans through Primary Agricultural Credit Cooperative Societies across several Assembly constituencies.
The CM pointed out that the cut has led to regional imbalances in fund allocation, particularly impacting constituencies with significant SC/ST populations. He said that Madhugiri has a 26% SC/ST population, while Kunigal has 8%, and admitted that disparities have crept into NABARD fund distribution. Assuring corrective action, the CM promised that the imbalance would be rectified in the coming year, with adequate NABARD allocation ensured for Kunigal.
Providing loan disbursal details, Siddaramaiah said that in 2024–25, the Tumakuru DCC Bank set a target of extending Rs 40.33 crore in short-term crop loans to 14,850 farmers in Kunigal taluk. Of this, 10,833 farmers have already received Rs 38.40 crore. Additionally, 11 farmers were extended Rs 1.58 crore in medium- and long-term agricultural loans.
For 2025–26, a target has been set to provide Rs 40 crore in short-term loans to 13,750 farmers. By the end of November, 2,983 farmers have received Rs 10.5 crore. Against a target of Rs 2 crore for medium- and long-term loans to 20 farmers, 13 farmers have already availed Rs 1.30 crore, Siddaramaiah informed the House.
The CM’s disclosure has brought renewed focus on the Centre’s reduced NABARD support and its ripple effects on rural credit and farmers’ livelihoods in Karnataka.
4 Bills tabled in Assembly
Four bills were presented in the Assembly on Tuesday for amendments: Bengaluru Metropolitan Land Transport Authority (Amendment) Bill, Bombay Public Trust (Amendment) Bill, Nadaprabhu Kempegowda Heritage Area Development Authority (Amendment) Bill and Karnataka State Road Safety Authority (Amendment) Bill.
The amendment to the Bengaluru Metropolitan Land Transport Authority Act, 2022, is being brought to revise provisions of the constitution of Bengaluru Metropolitan Land Transport Authority and Executive Committee regarding ex-officio members.
It is considered necessary to further amend the Nadaprabhu Kempegowda Heritage Area Development Authority Act, 2018, to include the director, Town and Country Planning department, and chief town planner of Greater Bengaluru Authority as members of the Nadaprabhu Kempegowda Heritage Area Development Authority.
The amendment to the Karnataka State Road Safety Authority Act, 2017, is being brought to omit the upper limit on the levy and collection of one-time cess at the time of vehicle registration.