The decision has been taken at a high-level meeting chaired by Home Minister Rajnath Singh and attended by Finance Minister Arun Jaitley, besides others.
BJP and its ally Apna Dal won 73 Lok Sabha seats, out of 80, in politically crucial Uttar Pradesh, where 73 districts were affected by the hailstorm.
The amount was sanctioned after examining the report of the central team which visited the hailstorm-hit areas in the state. Entire funds will be given to the state government which will distribute compensation amount to farmers as per the damaged crops, sources said.
The Centre has made changes in the norms to purchase shrivelled grains and tweaked the standards on moisture content to help the farmers.
The move is aimed at ensuring that wheat farmers get the full minimum support price (MSP) of Rs 1,450 per quintal.
According to the new norms, farmers in rainfed areas will be eligible to claim assistance - in the form of input subsidy - of Rs 6,800 per hectare, compared to the earlier Rs 4,500.
