New Delhi: Government is considering a relief package of over Rs 4,000 crore to
farmers in view of the crop loss suffered by them due to drought and to enable them
to step up the coming rabi output.
"Recommendations of the Commission for Agricultural Costs and Prices (CACP) for
Minimum Support Prices (MSP)-linked bonus, rolling back of fertiliser prices to pre-
Budget level and waiver of interests on farm loans will be considered actively,"
Union Agriculture Minister Ajit Singh said on September 27.
"Our priority is to get the proposal for bonus beyond the MSPs cleared fast. Effort
is to place it in the next Cabinet meeting and my ministry will send a note in a day
or two to expedite the matter," he said, adding that bonus would ensure proper use
of inputs like power and fertilisers.
While the bonus of Rs 20 per quintal of paddy proposed by the CACP is estimated to
put an additional burden of about Rs 400-450 crore, cut in fertiliser prices would
cost about Rs 500 crore, Singh told reporters after opening a conference of state
ministers on agricultural marketing reform.
On the proposal for writing off interests, the minister declined to disclose any
rough estimate of the quantum of extra money likely to be borne by the government,
but Ministry officials said that it could be Rs 2,500-3,000 crore.
Speaking at the conference, Singh said that the coming rabi crops are also likely to
be affected by drought as late sowing by farmers may delay wheat cultivation to some
extent, though late monsoon rains have reduced the impact.
Water reservoir position is again not sufficient, he said, adding that in states
like Rajasthan and Andhra Pradesh water would pose a serious problem.
PTI