Cooperation Minister KN Rajanna said Karnataka got Rs 2,340 crore, which is over 58 per cent less than last year's Rs 5,600 crore.
Speaking to the media in Bengaluru, Rajanna said this year, they had asked for Rs 9,200 crore and were hoping to get much more than last year's funding. On the contrary, the state received just Rs 2,340 crore, which will impact the interest-free loans provided to farmers, who may have to approach private moneylenders.
He said if farmers do not get institutional finances, they will go to private moneylenders to take loans at higher rates of interest.
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