PM sanctions Rs 400-cr interim relief for Maha rain damage

The central government announced an interim amount of Rs 400 crore to the Maharashtra government to provide relief for farmers affected by untimely rain in the state. In addition, the Union agriculture ministry says it will release Rs 200 crore for the damage caused to horticulture.

This was the outcome of meetings of an all-party delegation led by Chief Minister Prithviraj Chavan with Prime Minister Manmohan Singh and agriculture minister Sharad Pawar. The state government's total demand was for Rs 5,994.05 crore.

The Centre’s announcements came after it assured Rs 400 crore to Andhra Pradesh for the a similar reason.

Chavan told Business Standard: “This is an interim relief. The Centre is expected to announce further assistance after it goes through the state government’s report on damage caused to various crops and infrastructure.”

Paddy was the worst hit crop, with a damaged area of 0.42 million hectares in Konkan, eastern Vidarbha and Nashik district. Jowar, which was in a maturity stage, suffered losses on 90,000 ha, the majority in Latur division. Due to good rain in September and October, farmers, especially in Amarawati division, went for early sowing of gram. The crop was in the stage of emergence and got affected by heavy rains in November.

Extensive damage was also caused to national and state highways and other major roads.

A senior government official, who did not want to be named, said of the Rs 5,994 crore of central assistance sought, Rs 915 crore was for damages to field and horticultural crops, Rs 450 crore for interest waiver and Rs 4,632 crore for damage to roads.

The official said the state government argued its limitations in meeeting expenditure from the existing Calamity Relief Fund (CRF). The state has initiated action to reschedule short-term loans, write off interest on crop loans and gradually extend the scope of comprehensive crop insurance to all crops, beginning with horticultural ones.