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BANGALORE, Sept. 15

THE Karnataka Government has decided to convert the Rs 750-crore short-term crop loan disbursed during this kharif season into medium-term loans and waive the interest to the tune of Rs 127 crore, even if the Centre fails to come to its rescue, the Minister for Cooperation, Mr H. Vishwanath, said here.

Speaking to reporters, Mr Vishwanath said this is expected to provide some relief to the drought-affected farmers in the State and benefit some 15 lakh families. The Government has decided against waiting for officials to compile a report on the crop yields to grant the interest waiver benefits and extend the facility across the board without wasting any time, he said.

The State has made budgetary provisions for release of Rs 63 crore, that is about 50 per cent of its share in waiving the interests, while it is awaiting the Centre's response for its contributions, Mr Vishwanath said.

The Union Agriculture Minister, Mr Ajit Singh, had recently said that the Centre was planning to announce a similar waiver in view of the prevailing drought in some 14 States.

The State Government would also provide an additional Rs 73.37 crore to the Agriculture Stabilisation Fund to enable farmers secure loans for the rabi season from the co-operative institutions. It is also providing guarantee to Nabard to an extent of 60 per cent for Rs 294 crore, he said.

Meanwhile, the State Government has released Rs 6 crore for procurement of arecanut in districts of Shimoga, Uttara Kannada, Mangalore and Udupi, he said.

The state-owned Campco is carrying out procurement at about 17 centres, he added.

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