Package for rain-hit farmers of MP, Maharashtra, Karnataka

The Union government on Wednesday worked out a compensation package for farmers in Maharashtra, Madhya Pradesh and Karnataka. This followed a high-level meeting to assess the damage to crops in these states due to the recent bout of rains and hailstorms there.

However, an announcement on the package was withheld because of the model code of conduct ahead of the coming elections. The package would be sent to the state governments concerned after a clearance from the Election Commission. Officials said it was expected Maharashtra would get a relief package of about Rs 1,400 crore.

The Maharashtra Cabinet at a later meeting decided to provide a Rs 4,000-crore special package for farmers in 165 talukas.

A government official said the decision to waive interest of Rs 268 crore on crop loans was also taken. Farmers would also be exempted from paying electricity bills, which will work out to Rs 200 crore. Farmers with at least two hectare would be entitled to the relief package. Farmers would also get an assistance of Rs 25,000 a hectare.

Referring to the Centre’s package, Agriculture Minister Sharad Pawar told reporters: “An empowered group of ministers met to take stock of the situation after the recent rains and hailstorms in some parts of the country and took a view on the matter. But an announcement on this can only be made after taking approval from the Election Commission.”

He added horticulture, cereal and other crops across about 1,700,000 hectares had been damaged in 28 districts of Maharashtra, while in Madhya Pradesh, crops on 1,100,000 hectares had been damaged across 51 districts. In Andhra Pradesh, crops across 100,000 hectares had been damaged.

“There will be no impact on prices and our overall assessment of record food grain production in 2013-14 will not be impacted much,” Pawar said, adding vegetable prices weren't likely to increase substantially because of the unseasonal rains.

So far, 23 farmers in the hailstorm- and untimely rain-hit villages of Maharashtra have reportedly committed suicide---six each from Vidarbha and Nashik, 10 from Aurangabad and one from Sangli.