The decision was taken following cotton growers and traders demand, he said.

Referring to onion glut in the market, the minister said over 2.26 lakh quintals of onion had been procured from growers in the northern districts. A sum of Rs 24.20 crore has been spent on procurement of the commodity from 7,524 farmers.

Savadi defended hike in milk prices by Karnataka Milk Federation. He said, Rs 2.5 of the Rs 3 hike is being passed on to the farmers. Moreover, the milk price was less in Karnataka compared to other states.

Asked about actions taken on housing societies which violate laws in allotment of sites and houses, the Minister said Vailikaval and the State Secretariat Employees'' housing societies have been superseded and administrators appointed.

He said crop loans in drought-hit taluks would be rescheduled for a year and one per cent rate of interest would be charged for the extended one-year period.

As on November 30, 2011, cooperative banks and societies disbursed Rs 4,080 crore loans at interest rate of one per cent rate to farmers. Cooperatives have been given a target to disburse up to Rs 7,000 crore in 2011-12, Savadi said.

Source: MSN India, India,  dated 10/01/2012