Govt intends to give upto Rs2 lakh interest free loan to farmers

Assuring complete support for growth in the agriculture sector, Karnataka Chief Minister Siddaramaiah on Thursday said the government intends to provide interest free loan to farmers up to Rs two lakh and projected his administration as industry friendly.

"In order to support farmers and growth in the agriculture sector, state government plans to provide interest free loan to farmers up to Rs two lakh. Loans should be made available easily through co-operative or nationalised banks," he said.

Along with the loan, farmers should also be provided good quality seeds and fertilisers, he said at a Federation of Karnataka Chambers of Commerce and Industry (FKCCI) event.

He said Karnataka would have a separate commission to decide on price for agriculture commodities on the lines of the Commission for Agriculture Costs and prices at the Centre.

"We need a separate commission at the state level to decide on the price for agriculture produce on the lines of the one at the Centre. Our farmers should get fair price for what they grow; this should in turn help in arresting farmer suicides and number of farmers quitting agriculture."

Urging farmers not to commit suicide, Siddaramaiah said "Karnataka is only next to Maharashtra and Andhra Pradesh in farmer suicides....government is with them to support and rehabilitate."

Stressing the urgent need to improve the agriculture sector, he said "government will take all necessary steps in this direction."

"There is increase in number of people quitting agriculture and moving towards cities. We will have to stop this to increase food production and become self-sustaining. This can be achieved by giving importance to agriculture and improving the quality of lives associated with it," he said.

Taking a dig at the previous BJP government on presenting a separate agriculture budget,he said it was directionless and had proved unsuccessful in providing growth to agriculture and increasing production.

Siddaramaiah also sought to project his government as pro industry and pro investment. "We need more and more industries coming into the state, we are also preparing a new industrial policy that is industry friendly," he said.

Stating that he is industry friendly, he said he is being projected wrongly. "Our intention is that fertile land should not be issued for industrial purposes, it should be avoided. Only required measure of land must be issued." On bringing in investment into the state, he said government would organise an investment meet in 2014.

"We need both domestic and foreign investment in the stat and it should not be limited only to industrial sector, but also to agriculture and services sector. Government will take all necessary steps to create investment friendly atmosphere," he said.