NEW DELHI: Prime Minister Narendra Modi today announced the government’s decision to raise by 50 per cent the quantum of compensation to farmers affected by crop losses due to recent unseasonal rains.
Besides, the criterion of 50 per cent crop damage for providing compensation to farmers has been reduced to 33 per cent, which will help more people get better compensation for the crop loss.
Speaking at the launch of the Pradhan Mantri MUDRA (Micro Units Development Refinance Agency) Yojana here, he also instructed insurance companies to expeditiously settle the claims of the distressed farmers.
The decision to provide liberal assistance to farmers was taken by Modi after a review meeting with Cabinet Ministers who were asked to assess the damage to the crops following the unseasonal rains and hailstorms in northern and central parts of the country.
“….The Second important decision we have taken is to raise the parameters for helping him (farmer). The amount of compensation has been increased to 1.5 times. If earlier, he was getting Rs 100 as compensation, now he will get Rs 150. If it was Rs 1 lakh, he will get Rs 1.5 lakh…a 50 per cent increase,” Modi said.
The Prime Minister said that he has also asked banks to restructure loans of the affected farmers and instructed insurance companies to pro-actively settle their claims.
Later, Reserve Bank Governor Raghuram Rajan told reporters that he has directed banks to restructure loans of the farmers in distress.
Farmers have suffered a lot on account of natural calamities, Modi said, adding that “last year, it was due to less rainfall and this year due to unseasonal rainfall and hailstorm”.
On providing higher compensation to the affected farmers, Modi said: “(It) will impose a heavy burden on the exchequer but it is important to help them as they are in distress.
“We have to worry about the farmer of India, who faces problems due to lack of adequate rainfall or unseasonal rains.”
Yesterday, Agriculture Minister Radha Mohan Singh had said that unseasonal rains and hailstorms have damaged rabi (winter-sown) crops in about 113 lakh hectares in the country.
The initial estimates, according to the Reserve Bank, “indicate that as much as 17 per cent of the sown area under the rabi crop may have been affected though the precise extent of the damage remains to be determined.” –PTI
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