Bangalore: Karnataka government has decided to convert Rs 750 crore short-term crop loan disbursed during this Khariff season into medium term besides extending interest waiver scheme to the tune of Rs 127 crore, Minister for Co-operation H Vishwanath said on September 14.

These measures announced to provide relief to farmers hit by severe drought would benefit 15 lakh farming families, he told a press conference.

Vishwanath said the government has decided against waiting for the officials to compile a report on "annevari" of crops to grant the interest waiver benefits and extend the facility across the board without loss of time.

The government, to ensure credit to farmers during the coming Rabi season has decided to stand guarantee to NABARD to an extent of 60 per cent i.e for Rs 294 crores and contribute Rs 73.50 crore to the "Agriculture Stabilisation Fund".

Vishwanath, referring to the Union Agriculture Minister Ajit Singh's statement that the Centre was considering to waive interest on farm loans in 13 drought affected states, said Karnataka has not only become a trend setter but also the first in the country to offer such incentives.

He said since the Centre was convinced the hardship faced by farmers, it should share atleast 50 per cent of interest waiver scheme in Karnataka, otherwise, the state would be forced to conclude that Union government is "anti-farmer".

Karnataka, he said has already made budgetary provision for release of Rs 63 crore towards its 50 per cent share.

Vishwanath said the state was prepared to bear the entire burden of Rs 127-crore interest waiver accrued on Rs 975 crore loan disbursed to farmers, if the Centre refused to come to its rescue.

He said, the Congress government headed by Chief Minister S M Krishna was the first ever government in the state to provide budgetary allocation for the interest waiver scheme.

Vishwanath alleged that the previous Janata Dal government during 1994-95 under the Chief Ministership of H D Devegowda had announced interest waiver scheme on paper without any budgetary support.

He said the total financial burden the state would be facing on account of loan waiver and release of funds for agriculture stabilisation fund would amount to Rs 203 crore.

PTI