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MANGALORE, March 6

THE Mangalore-based Karnataka Bank has launched a package of measures for farmers in the context of the continuous downslide in the prices of several agricultural commodities.

The package includes the launch of a new scheme — Punaschetana — for restructuring advances to agriculturalists, apart from provisions for granting fresh, need-based credit. The package also includes an interest rebate for prompt repayment, besides a downward revision of ``various charges'' on agricultural loans.

According to a Karnataka Bank press release issued here on Wednesday, `Punaschetana', which will be in force up to March 31, 2003, aims at addressing the difficulties faced by farmers in repaying agricultural loans and also in getting further finance to meet production expenses.

The scheme will enable restructuring of all existing loan accounts of agriculturalists (including coffee growers) who are `non-wilful defaulters'. A longer repayment schedule would be offered to tide over the current crisis facing the agricultural sector as a whole.

However, according to the bank, the restructuring has to be `viable' and the borrower is required to pay a `reasonable amount' under each loan account. Fresh crop loans and working capital limits could be worked out after taking into account the ``present market rates, reasonable cost of cultivation and viability taking into consideration the prevailing norms.''

Also, the due date of the loan instalment/interest shall coincide with the harvesting and marketing period of the crops as well as the liquidity position of the borrower.

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