The Hindu : New Delhi News : Rs. 4,000-crore package for Vidarbha farmers

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Saturday, Jul 01, 2006

New Delhi

New Delhi

Rs. 4,000-crore package for Vidarbha farmers

Gargi Parsai

Efforts on to work out complete interest waiver on loans

NEW DELHI : The Centre has finalised an over Rs. 4,000-crore rehabilitation package for farmers in six districts of Vidharbha in Maharashtra, where the prevalence of suicide is high.

Till Thursday night efforts were on to work out complete interest waiver on loanstaken by farmers in the districts of Wardha, Amravati, Akola, Washim, Buldhana and Yeotmal. If this proposal comes through, the package will run into nearly Rs. 5,000 crore. It will be implemented over three years.

Prime Minister Manmohan Singh will announce the package, prepared by the Agriculture Ministry, during his two-day visit to Vidharbha villages. Between 2001 and 2006, nearly 1,000 farmers killed themselves in the drought-prone region.

A major component of the package will be liberalised rescheduling of loans and fresh credit flow to farmers in distress and those in arrears, the cut-off date being June 30, 2006. Sources said over Rs. 2,000 crore was the total outstanding farm loans on March 31, 2006 in the six districts. Guidelines would be issued on this.

About 1.5 lakh hectares would be brought under assured irrigation by completing all major, medium and minor irrigation schemes in the six districts at a cost of Rs. 2,500 crore. A grant would be given for water harvesting structures and participatory watershed development. Subsidy would be given for rainwater harvesting schemes and drip and sprinkler irrigation.

A substantial component of the package would be allocated towards higher subsidy for diversification into horticulture, livestock, dairying and fisheries and creation of fodder bank. Support up to Rs. 200 crore would also be provided for 50 per cent Seed Replacement Ratio.

The proposal was to provide quality seeds of jowar, soybean, tur, black gram, moong, sunflower and cotton. Extension services would be strengthened through Agriculture Technology Management Agencies.

A technology mission on citrus would be launched in this orange growing belt. This would address the problem of production, protection, post-harvest technology and processing under the supervision of the National Research Centre on Citrus at an estimated cost of Rs. 225 crore.

The rehabilitation package would be implemented and monitored by a State-level committee with representation from the Centre and at the micro level, through district panels and panchayats.

Packages would also be worked out for 25 districts in Andhra Pradesh, Karnataka and Kerala, where too the suicide rate is high.

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