Karnataka Budget 2023 Siddaramiah brings some relief to farmers

Bengaluru: Chief Minister Siddaramaiah brings promising news for the farmers in the state. In addition to an increase in the loan limit, numerous schemes have been introduced. The ceiling for short-term loans, offered at a zero interest rate, has been raised from three lakh rupees to five lakh rupees.

Furthermore, the threshold for medium and long-term loans, with an interest rate of 3 per cent, will be elevated from 10 lakh rupees to 15 lakh rupees. As a result, the government aims to disburse Rs 25000 crore to over 35 lakh farmers this year.

To facilitate the storage of their own and neighboring farmers' produce, the state government will provide a 7% interest subsidy on loans up to 20 lakh rupees for building warehouses. Additionally, farmers in the hilly areas of Shimoga, Chikkamagaluru, Kodagu, Hassan, Dakshina Kannada, Udupi, and Uttara Kannada districts can avail a loan of up to 7 lakh rupees at a 4 per cent interest rate to purchase a four-wheeler pickup van for transporting agricultural produce and implements.

In collaboration with KAPPEC, mini cold storages will be established in 50 selected vegetable markets across the state. This initiative aims to assist farmers in avoiding distress sales caused by fluctuations in prices of perishable fruits, flowers, and vegetables, while ensuring fair prices.

Moreover, the government aspires for agricultural produce markets to offer decent prices and act as organizations that safeguard the welfare of farmers. CM Siddaramaiah highlighted the strengthening of the state's agricultural produce markets during our previous tenure, including the successful implementation of the country's first online market system.

This initiative may arrest the fluctuations in the prices of vegetables, fruits and tubers and legumes in the market. Karnataka will be able to involve in forward trading for these products with the deficit crop areas in the neighbouring states and guard the priceline at a healthy level for the Karnataka farmers.