From Our Special Correspondent
Daijiworld Media Network - Bangalore

Bangalore, Nov 11: Demand from farmers for crop loans which are being disbursed by the Government run cooperative banks and societies declined this year following drought in more than 90 taluks in the State.

Against target of disbursing Rs 7000 crore as crop loans tofarmers from cooperatives at one per cent rate of interest during 2011-12, barely Rs 3700 crore had been disbursed by district cooperative credit (DCC) banks and primary agricultural cooperative societies (PACS) during first six months of the year.

The State Government had issued an order for sanctioning short-term crop loans by cooperatives at one per cent rate of interest to farmers from April 1, 2011. Farmers are eligible to borrow short term loans up to Rs three lakh from cooperative societies.

However, according to Karnataka’s Cooperation Minister Laxman S Savadi crop loans to the tune of Rs 1000 crore have not been borrowed by farmers due to deficit rainfall in several districts of southern and northern Karnataka despite availability of funds with cooperatives.

Savadi said he was optimistic of achieving the target of loan disbursement as sugarcane growers just commenced cane plantation in north Karnataka districts.

“Now farmers have been demanding loans for cane plantation and plantation will go on till December end” the Minister said.

The government has decided to reschedule loans borrowed by farmers in drought hit districts. Based on the reports of DCC banks and the Revenue Department, the loans would be rescheduled in drought hit districts, he said.

The Minister said the cooperative week would be celebrated all over the State from November 14 to 20.

A retired department official and five cooperatives would be honoured with “Sahakara Ratna” by the Chief Minister at a function at Nelamangala on November 14.