Karnataka to disburse ₹24,000 crore credit to 33 lakh farmers through cooperatives in 2022-23, says Minister S.T. Somashekar

Meeting scheduled with RBI on November 25 to discuss opening of Nandini Ksheera Samruddhi Bank for dairy farmers

Minister for Cooperation S.T. Somashekar on Friday, November 18, said the government will disburse ₹24,000 crore credit at zero rate of interest to 33 lakh farmers across Karnataka in this financial year.

He was addressing the audience after inaugurating the 69th State-level Cooperative Week celebrations, jointly organised by Karnataka State Cooperative Federation, Cooperative Marketing Federation, South Canara District Central Cooperative (SCDCC) Bank and others.

Stating that Karnataka is in the forefront of the cooperative movement (second place in India), the Minister said that the government has re-introduced the Yashaswini health scheme responding to the demand of cooperatives. During his tour across Karnataka, cooperatives had been urging re-introduction of the scheme, which was introduced when S.M. Krishna was the Chief Minister (1999-2004). It had become very popular, but was merged with other government health schemes. Now, Chief Minister Basavaraj Bommai has re-introduced the scheme from November 14 for the benefit of farmers and cooperatives.

Mr. Somashekar said the department and representatives of milk cooperative Unions, including the KMF, were scheduled to hold a meeting with the Reserve Bank of India (RBI) on November 25 in connection with opening of Nandini Ksheera Samruddhi Bank. The bank is being established to financially help dairy farmers across Karnataka, numbering over 25 lakh under 15 cooperative milk unions.

The Minister said the department is working to get the loans being given by the National Bank for Agriculture and Rural Development to DCC banks doubled this financial year. While farmers were repaying loans on time, 90% of DCC banks, particularly SHGs, were repaying 100% of the loans. Among 21 DCC banks in Karnataka, SCDCC Bank has been in the top position.

Almost all urban cooperative banks in Karnataka have received ‘A’ grade and been functioning efficiently. Credit societies as well as 21 DCC banks too are showing a profit, providing employment to thousands of people and offering credit to lakhs of farmers.

Deputy Leader of Opposition in the Legislative Assembly U.T. Khader, MLA D. Vedavyasa Kamath, SCDCC Bank Chairman M.N. Rajendra Kumar were among those present at the event.