The Hindu : Karnataka / Bangalore News : Benefits trickle in from farmers' package

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Friday, Dec 31, 2010
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Karnataka

Karnataka - Bangalore

Benefits trickle in from farmers' package

Nagesh Prabhu

Rs. 2926 .58 crore of the package has been spent as of November 30, 2010

Pace of execution in watershed projects slow
Implementation of micro irrigation projects have benefited farmers; suicide rate drops: experts

Bangalore: The implementation of the Prime Minister's package — largely funded by the Centre for farmers in distress — in six districts has finally gained some momentum. A sum of Rs. 2926 .58 crore has been spent as of November 30, 2010.

The Centre announced the package in September 2006, with funding for six districts, namely Belgaum, Hassan, Chikmagalur, Kodagu, Shimoga and Chitradurga, which were declared as “districts in agricultural distress” owing to a large number of suicides by farmers.

Though the package was announced for three years, it was extended up to 2011 following the slow progress in the execution of several components.

Regional rural banks, cooperatives and commercial banks have waived overdue interest of Rs. 639.75 crore. As on September 30, 2010, 2,79,670 loans amounting to Rs. 1,140 crore have been rescheduled, officials in the National Bank for Agriculture and Rural Development (NABARD) said.

Good financial progress was achieved under the major and minor irrigation components. Works to the tune of Rs. 1,871.80 crore have been executed.

In the horticulture sector too, Rs. 141.23 crore was spent against the total outlay of Rs. 106.15 crore. The funds spent included amount sanctioned under the National Horticultural Mission.

A sum of Rs. 45.49 crore had been spent against the allocation of Rs. 64 crore for micro irrigation and Rs. 3.14 crore against allocation of Rs. 3 crore for extension of services, the officials said.

Experts pointed out that implementation of the package and several subsidy schemes of the Government had benefitted farmers to some extent and this was reflected in the reduction in number of suicides among farmers. Against 114 farmers ending their lives in 2009 owing to the failure of crops, debts, and drought, there were 22 incidents reported till November 2010.

Slow pace

However, pace of execution was slow in watershed projects. The State Government borrowed Rs. 144 crore from NABARD under Rural Infrastructure Development Fund. Implementation of the project has been slow in Shimoga and Hassan. Of the Rs. 144 crore, Rs. 18.78 crore was spent in the first six months of the current fiscal, Venkaesh Tagat, Chief General Manager, NABARD, Bangalore, told The Hindu on Sunday.

The pace of execution would pick up in Shimgoa and Hassan districts by March and funds would be fully utilised before the package term ends. Several factors, including lack of farmers' interest in the implementation of the package, have led to slow utilisation of funds meant for watershed peojects, he said.

Under seed replacement, the Government had spent only Rs. 73 crore although the Centre released a subsidy of Rs. 178 crore.

The ban on the distribution of hybrid seeds developed by private agencies is said to be the reason for the low utilisation of funds. The area limit under the seed replacement programme had been doubled to two hectares of land.

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