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September 27, 2002 | 1310 IST
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Govt mulling Rs 4000-cr relief package for farmers

The government is considering a relief package of over Rs 4000 crore (Rs 40 billion) for the farmers in view of the crop loss suffered by them due to drought and also to enable them to boost the coming rabi output.

"Recommendations of the Commission for Agricultural Costs and Prices for 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 Friday.

"Our priority is to get the proposal for bonus beyond the Minimum Support Prices 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 (Rs 4-4.5 billion), cut in fertiliser prices would would cost about Rs 500 crore (Rs 5 billion), 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 it could be Rs 2500-3000 crore (Rs 25-30 billion).

Speaking at the conference, Singh said 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 Rajastnan and Andhra Pradesh water would pose a serious problem.

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