Gujarat announces Rs 1100 crore relief package for farmers

Farm assistance worth Rs 700 cr has also been announced for farmers for Rabi sowing under the 'Krishi Mela' programme

At a time when the farming community has been seeking higher minimum support price (MSP) for cotton and groundnut, apart from other assistance, the Gujarat government on Monday announced a Rs 1100 crore farm relief package for farmers in the state.

The package was announced on Monday by Gujarat chief minister Anandiben Patel post a meeting with cabinet ministers and senior officials.  The Rs 1100 crore package includes 50 per cent assistance on short term farm loan interests and electricity bills each worth Rs 600 crore and Rs 500 crore, respectively. In an official communique, the state government informed that farm assistance worth Rs 700 crore have also been announced for farmers for Rabi sowing under the ‘Krishi Mela’ programme.

In a meeting with ministers and senior officials of agriculture department, the chief minister, Anandiben Patel on Monday announced 50 per cent assistance on short term farm loan interests and electricity bills each amounting to Rs 600 crore and Rs 500 crore respectively, a state government statement said.

Besides this, the state government has already announced Rs 700 crore worth of farm assistance to farmers for rabi sowing under the state government’s ‘Krishi Mela’ programme.

It needs to be mentioned here that on Monday the farming community represented by Bharatiya Kisan Sangh (BKS) held protests in Ahmedabad in an attempt to seek higher MSP.  In this regard, senior ministers Nitin Patel, Bhupendrasinh Chudasama and Babu Bokhiria stated that the farmers’ demands are being taken in into consideration.

In a statement, the ministers said that farmers have got insufficient prices for their crop due to cotton production in India as well as in other countries like China being very high leading to excess supply.  The ministers added that given such issues, the all-encompassing package has been announced for all farmers and not just for cotton farmers.

According to state government, district cooperative banks and nationalised banks gave out farm loan worth Rs 21,000 crore to farmers in Gujarat, resulting in estimated interest worth Rs 1,100 crore, of which about 50 per cent or Rs 600 crore will be borne by Gujarat government under the package.

Further, 50 per cent or Rs 500 crore worth assistance will be provided to farmers on the total electricity bills amounting to Rs 900 crore in Gujarat.