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Government announces massive relief package for farmers |
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In the wake of Sonia Gandhi’s call for pro-farmer policies, the UPA Government has firmed up a Rs. 16,978 crore relief package for farmers of 31 districts across four states plagued by distress suicides. The relief and rehabilitation package was cleared on Friday, September 29, at a meeting of the Union Cabinet chaired by the Prime Minister. Briefing newspersons, Finance Minister P. Chidambaram said, “The rehabilitation package will help mitigate the distress faced by farmers in 31 districts. It will also check the spate of suicides by farmers and reduce their vulnerability to natural calamities”. The package will be implemented over the next three years.
While the rehabilitation and relief work in Maharashtra has already started, it will take off shortly in Andhra Pradesh, Karnataka and Kerala. As part of the rehabilitation, the Centre has waived the Rs 2006.25 crore on outstanding loans in 25 districts. Of this, the Centre would fork out Rs 1003.12 crore. A matching grant would be provided by the three states – Andhra Pradesh, Karnataka and Kerala. Interest worth Rs 712 crore has already been waived for six districts of Maharashtra.
Apart from providing fresh credit and rescheduling the existing loans, funds would be advanced by banks and financial institutions. Farmers would be given high yielding milch cows as alternative source of income.
A Finance Ministry official said, “The financial burden would be shared by the Centre, states, banks and financial institutions because of the tight fiscal condition.”
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