Bengaluru: The state government will face serious problems in the coming days in advancing agriculture loans to farmers if National Bank for Agriculture and Rural Development (NABARD) fails to increase the quantum of refinance to farmers, said co-operation and sugar Minister Mahadevaprasad.
Replying to members in the Legislative Council on Monday, he said the state had disbursed Rs 9,300 crore last year against the target of Rs 10,000 crore. However, recently, a high-level team from NABARD had decided to restrict advancement of agriculture loans to 40 per cent or 50 per cent.
If that happens, the state would stand to lose Rs 5,000 crore which otherwise would have been used to advance agriculture loans to farmers. Chief Minister Siddaramaiah has decided to take up this issue with PM Narendra Modi when an all party delegation meets the PM in Delhi shortly.
