The Hindu Business Line : Central package for farm sector

comprehensive package
The State is planning to seek a comprehensive package from the Centre that will cover credit facility for farmers including rescheduling of loans with larger moratorium on repayment and waiver of interest.

Hyderabad , April 9

The State Government proposes to seek additional Central support in its endeavour strengthen the agriculture sector.

On the eve of the conclave of the Chief Ministers of southern states, slated for April 10, the Chief Minister, Dr Y.S. Rajasekhara Reddy, held a meeting to review the situation. The conference will deliberate on issues relating to farmers suicides,

The chief ministers of Karnataka, Maharashtra and Kerala will participate in the meeting to be chaired by the Union Agriculture Minister, Mr Sharad Pawar.

The conference focus will be on measures to tackle spiralling farmers suicides and their inherent hardships.

Due to sustained efforts of the State administration, which included credit programmes, enhanced crop loan and agriculture term loans, coupled with free power to farmers, the number of farmers' suicides dropped from 177 in August 2004 to seven in March, 2006, a statement from the Chief Minister's office claimed.

The State is planning to seek a comprehensive package from the Centre that will cover credit facility for farmers including rescheduling of loans with larger moratorium on repayment and waiver of interest. It plans to request for a special debt restructuring package for small and marginal farmers.

The other measures would include one-time repayment settlement of loans where farmers would be given an option to repay old loans in an one-time settlement besides 3 to 4 years for rescheduling of loans for payment of pending loans.

The State is seeking assistance for irrigation projects that will cover financial assistance of about 50 per cent of the project cost from the Centre.

Alongside this, the memorandum will cover issues relating to cheaper credit for Milch cattle/horticulture/poultry/fisheries to farmers as alternate livelihood in the event of crop failure and natural calamities.

Assistance for free power devices is being sought where the Centre can facilitate farmers with 50 per cent grant towards purchase power-saving devices such as capacitors, pipes, pumpsets and frictionless foot valves.

Other concerns relate to liberalised crop insurance, financial assistance for Rythu Mitra Groups for purchase of equipments such as harvesters, micro irrigation equipments besides agricultural extension activities and medical insurance for farmers.

The Centre would be requested to make additional grant towards medical insurance for all categories of farmers including the below poverty line families by raising it to Rs 540 as against the current Central assistance of Rs 300.

While appreciating the sustained efforts of the State Government in its irrigation initiatives, Mr Pawar has assured the Dr Reddy that suitable financial assistance will be provided to irrigation works identified by the Centre.

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