Siddaramaiah urges Sitharaman to have 'strong word' with NABARD, RBI after farm loans to state slashed

'I have explained her that we are planning to give a Rs 9,012 Crore short term loan. If NABARD doesn't increase loan amount, we have to go to commercial banks and pay 10 to 12% interest. This will put our farmers into a crisis,' Karnataka CM Siddaramaiah said.

Mysuru: Chief Minister Siddaramaiah said that he has explained to Union Finance Minister Nirmala Sitharaman that reduction of the NABARD loans by 58% to Karnataka is an injustice to the farmers in the state and could push them into a crisis situation. He has urged her to put a strong word to NABARD and RBI, which comes under Union Finance department to restore to the previous amount, he said.

He was speaking to media persons at Mysuru Airport on Friday.

CM Siddarmaiah said, "In 2023-24, NABARD had given Rs 5,600 Crore short term loan to State. It has been increased every year for the past five years. This time they have reduced it to Rs 2,340 Crore (reduced it by 58%). They charge only 4.5% interest for it. Karnataka State Government pays interest for short term loan upto Rs 5 lakh. Hence since NABARD comes under the Union Finance Minister who is Rajya Sabha member from Karnataka, I met her. I have explained her that we are planning to give a Rs 9,012 Crore short term loan. If NABARD doesn't increase loan amount, we have to go to commercial banks and pay 10 to 12% interest. This will put our farmers into a crisis. Hence I urged her to talk to NABARD and RBI immediately. She said she would do it," he said.

He questioned, "If Prahlad Joshi defends reduction of NABARD loans, he feels injustice to farmers is right? What 'Mannina maga' Central minister H D Kumarswamy and MPs are doing about it?" Siddaramaiah questioned.

On Adani bribery case

Chief Minister Siddaramaiah said, "BJP leaders are not defending and supporting Adani, without the PM telling them to do it. The PM will make attempts to protect him. Warrant has been issued to Adani alleging of giving 2100 Crore bribe to officials of various States. It has affected the reputation of the Country. We demand his arrest," he said.