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Home -> Finance -> Full Story
Minister mulls interest waiver for drought-hit ryots
Friday, September 13 2002 15:18 Hrs (IST)

New Delhi: Strongly favouring writing off of interests on loans taken by distressed farmers in 13 drought-hit states, Union Agriculture Minister Ajit Singh on September 13 said he would take up the matter with the Prime Minister and Finance Minister.

"I have held preliminary discussions with the Finance Minister on interest waiver. I will also urge the Prime Minister to grant this concession to farmers in addition to rescheduling of loan repayment already announced," he told reporters after inaugurating a meeting on drought management.

Singh said the total amount of loan interest due from farmers in different states can be ascertained by the end of this month when all the Central teams sent to the affected regions submit their reports.

The Centre would be in a position to work out a complete relief package for the affected states only after examining the reports of the Central teams, he said, adding that by the end of this month a clear picture on the magnitude of assistance required can emerge.

Stating that area coverage under kharif crops has declined by about 20 per cent due to the "driest July" of the century, he said even in many areas where sowing took place, crops faced damage due to deficient rains.

Besides giving input subsidy, Centre would look into the demand of 14 lakh tonne foodgrains by eight states for Food for Work Programme. States have demanded a special component from the Sampoorna Gramin Rozgar Yojana to tackle the drought.

Expressing concern over certain demands by states falling "outside the yardsticks" laid down for National Calamity Contingency Fund (NCCF), Singh said they have included many things not covered under NCCF specifications.

PTI



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