Centre may announce farm package for Karnataka

The Centre is working out a farm relief package for Karnataka on the lines of a package announced recently for Vidharba region in Maharashtra.

Last month, the Vidharba region got a Rs 4,000-crore package for rescheduling of loans and issue of fresh credit flow to farmers in distress.

Addressing the state-level bankers' committee meet here on Tuesday, M B Patro, general manager, Nabard (Karnataka), said beneficiary districts mainly in Malnad region and cotton fields in the plains of Karnataka (Raichur, Bellary, Gulbarga) are being identified.

He added that the quantum of relief package is being discussed and a decision will be taken in a couple of months.

Urging the state government to amend the Agricultural Produce Marketing Committee (APMC) Act, Patro said amending the Act would see huge investments in the farm sector and also help farmers realise more returns for their produce.

He further highlighted that Karnataka continues to occupy the prime position with aggregate support in watershed development to the tune of Rs 28.42 crore from Nabard.

"To assist farmers, Nabard has organised various training programmes, empowerment workshops and exposure programme benefiting various stakeholders of the watershed projects. About 869 self-help groups (SHGs) have been formed in these project areas, with total savings in excess of Rs 1 crore. In all, 324 SHGs have availed bank loan of Rs 1.50 crore," Patro said.

Karnataka being among the key states in microfinance, as at end of March 2006, the cumulative number of SHGs formed stood at 2.97 lakh (including 59,695 groups in 2005-06), covering nearly 45 lakh rural families.

According to Patro, about 58,711 fresh groups have been credit-linked during the year with loan assistance of Rs 392 crore, taking the cumulative linkage to 2.22 lakh groups and credit support to Rs 944 crore. Nearly Rs 71 crore were released as refinance to 20,155 groups during the year (2005-06).