Hyderabad, December 17: In a major relief to distressed farmers, the State government on Thursday waived interest on crop loans borrowed this year and enhanced input subsidy to all major crops. This is the first time that it has announced interest waiver on its own.
Hike in input subsidy means farmers will now get Rs 6,000 per hectare instead of the Rs 4,000 being given by the Centre. The additional Rs 2,000 will be contributed by the State government.
Compensation for cattle lost in the recent rains and floods has also been increased (see table). Weavers too will get hiked compensation.
Chief Minister N Kiran Kumar Reddy announced the sops in his reply to a short discussion on farmers’ problems in the State Assembly. However, an unconvinced Opposition demanded more input subsidy for farmers besides Rs 200 bonus for paddy per quintal.
It also wanted the damage caused by the recent floods and rains to be declared as a national calamity.
TDP chief N Chandrababu Naidu, who spearheaded the Opposition attack, vowed to launch an indefinite fast from Friday in protest against the government’s response.
The Chief Minister, though, defended himself and promised to seek more funds for farmers from Prime Minister Manmohan Singh. “Farmers borrowed loans to the tune of Rs 16,500 crore this year. The interest waiver will be applicable to all the farmers in the rain-hit areas,” he assured the Opposition. On the demand for procurement of discoloured paddy by the Food Corporation of India (FCI), he said the FCI chairman was likely to announce MSP for paddy on Friday.
According to him, 483 mandals have been declared flood-hit till date and more could be added to the list after assessing the damage caused by the recent rains in Khammam and Nalgonda.
“The government has already released Rs 680 crore for crop damage in the previous years. Enumeration is still going on and estimates are yet to be received for the loss caused by the recent rains. We may have the report in three days,” he said. Coupled with the Rs 680 crore and the present relief, the government has announced Rs 1590 crore for farmers, Kiran Kumar Reddy explained adding that to release such a huge amount within 15 days after taking charge was unprecedented.
—Agencies