Karnataka’s Chief Minister Siddaramaiah unveiled the 2024-25 budget in the state assembly last Friday, announcing plans to amend the relevant legislation to introduce reservations in the management boards of cooperative societies.
The budget aims to channel Rs 27,000 crore through the cooperative sector this year, benefiting over 36 lakh farmers in the state, as highlighted by the CM during the budget presentation.
Siddaramaiah also outlined measures to bolster the financial stability of cooperative banks, recalling the previous term’s introduction of a crop loan waiver scheme. This initiative absolved farmers of crop loans up to Rs. 50,000, benefitting around 21 lakh farmers. The government compensated banks with Rs. 7,631 crore for this waiver.
Despite these efforts, cooperative banks faced significant financial strain due to the prior administration’s failure to settle outstanding dues of Rs 132 crore. In response, the current government has resolved to release these pending dues to DCC banks.
Furthermore, the government has decided to waive interest on medium and long-term overdue loans of DCC and PICARD banks, providing relief to over 57,000 farmers. This move is anticipated to facilitate the recovery of loans amounting to Rs 496 crore. Additionally, the government will extend Rs. 450 crore in financial aid to support these banks, thereby significantly improving their financial health.
The CM also highlighted significant policy decisions made in 2023-24, such as extending the loan limit for interest-free short-term loans from Rs 3 lakh to Rs. 5 lakh, and raising the upper limit for medium and long-term loans, provided at a subsidized interest rate of 3%, from Rs. 10 lakh to 15 lakh.
Moreover, plans were unveiled to establish cold storage facilities in APMC areas including Yalaburga, Basavana Bagewadi, Ranebennur, Ballari, and Gadag, with a total allocation of Rs. 50 crore. Additional cold storage units will be set up in Raichur and Mysuru at a cost of Rs. 40 crore each.
