Farmers benefited Budget Presented by B S Yeddyurappa

20-02-2009 Karnataka State Government have decided to extend the Farm Loan Interest Subsidy to those farmers who have availed crop loan from Commercial Banks at more than three per cent interest.

B S Yeddyurappa, presenting the budget proposals for the year 2009-10 in the Legislative Assembly, announced that the Farm Loan Interest subsidy which was limited to loans availed through co-operative institutions would be extended to loans taken from Commercial Banks also.

Yeddyurappa said that lakhs of farmers were benefited by the State government's three per cent interest on farm loan scheme and Rs 2650 crores loan was disbursed during 2008-09 and it would be continued next year also.

"The benefit would also be extended to those farmers who would avail their crop loan from Commercial banks" Chief Minister said amidst thundurus applause from the treasury benches. An additional Rs 250 crores would be earmarked for the purpose.

Announcing several other programmes benefiting farming community Chief Minister said that Rs 2100 crore has been earmarked for supply of free power to Irrigation Pump Sets for 2009-10 and Rs 750 crores for market intervention to save farmers from the suffering of price crash.

He said that Rs 250 crores has been earmarked for the next fiscal for purchase of Fertiliser through Karnataka Cooperative Marketing Federation. He also announced a budgetary allocation of Rs 100 Crore during 2009-10 for the development of Organic Farming in the state.

Chief Minister, who presented a deficit budget of Rs 43.08 crores for the year 2009-10 also envisaged for plan expenditure of Rs 6105 crores for Agriculture, Irrigation and Flood control and Agriculture allied sectors.

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