CM Siddaramaiah Reviews Karnataka Cooperative Sector, Orders Faster Farm Loan Disbursal and Action on Loss-Making Societies
Bengaluru: Karnataka Chief Minister Siddaramaiah chaired a cooperation department progress review meeting, setting fresh directives to strengthen the cooperative sector, farm credit system, and financial accountability across the state.
Key highlights from the review:
- Farm Loan Distribution: The state has set a target of disbursing ₹28,000 crore loans to 37 lakh farmers this year. By the end of July, loans worth ₹8,362.68 crore had been disbursed to 8,69,284 farmers. CM Siddaramaiah directed officials to ensure timely crop loans for farmers.
- NABARD Loan Ceiling: NABARD reduced the concessional loan limit from ₹5,600 crore to ₹3,236.11 crore (a 42.21% cut), yet loan distribution recorded 96.07% progress. In 2024-25, as many as 29.75 lakh farmers received ₹25,939.09 crore in farm loans.
- Cooperative Societies’ Performance: Of 28,516 cooperative societies, 14,670 are in losses, mainly due to poor loan recovery. The CM called for strict monitoring and corrective measures. He highlighted that 2,200 milk producers’ cooperative societies are also incurring losses, urging secretaries to cut costs and boost milk production.
- Kannada Sahitya Parishat Probe: On allegations of irregularities, the DRCS is investigating. The CM ordered legal action where necessary, stressing transparency.
- Vacancies & Staffing: There are 126 senior inspector posts and 403 inspector posts vacant in the cooperative sector. The CM asked for proposals to fill these vacancies at the earliest.
- Digitisation of Services: Siddaramaiah directed that the registrar offices of cooperatives must complete computerisation of services without delay.
- Regulation of Finance Firms: Currently, 7,074 pawn broker firms and 1,468 chit fund firms are registered under Karnataka Money Lenders Act 1961, Karnataka Pawn Brokers Act 1961, and Chit Funds Act 1982. CM instructed vigilance against unauthorised pawn brokers and chit fund operators.
Reiterating his government’s commitment, CM Siddaramaiah said:
“Every effort will be taken to strengthen Karnataka’s cooperative system, protect farmers’ interests, and enforce strict action under law.”
The meeting was attended by Economic Advisor Basavaraj Rayareddy, Political Secretary Naseer Ahmed, Additional Chief Secretary Anjum Parvez, and senior officials.
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