Farm relief package for Vidharbha okayed

The Cabinet has approved the validity of purchase preference policy on 102 medicines for five years, framework agreement with South Africa Customs Union, and relief package for agriculture credit in six districts of Vidharbha region.

The approval has been given for 102 drugs and pharmaceuticals, exclusively from pharma central public sector units and their subsidiaries by central departments, PSUs and autonomous bodies.

This will also be applicable to the purchase of 102 drugs made by state governments under health programmes funded by the Centre. The total purchases made by the central government departments is estimated to be around Rs 2,000 crore with state government purchases to be around Rs 2,000 crore.

The Cabinet also approved the framework agreement with South Africa Customs Union (SACU). The pact is aimed at expanding trade and also providing a mechanism for negotiation and conclusion of free trade agreement. This will help in promoting greater market access to India in Botswana, Lesotho, Namibia, South Africa and Swaziland.

Relief package for agriculture credit in debt-stressed six districts of Amravati, Akola, Wardha, Yavatmal, Washim and Buldhana in the Vidharbha region were also approved.

These districts have been identified because they have higher farmer suicide rates. The approval has been given for the entire interest waiver, which would make them eligible for fresh loans.

The estimated amount of interest on overdue loans is Rs 712 crore. The burden waiver will be shared equally between the state and the central government.

An additional flow of Rs 1,275 crore will also be ensured in these six districts in 2006-07. The Cabinet Committee on Economic Affairs approved the minimum support prices for Kharif crops.

The support price for paddy (common) and grade 'A' have been increased by Rs 10 per quintal. From Rs 570 and Rs 600 for paddy (common) and grade 'A' in 2005-06, the prices have been raised to Rs 580 and Rs 610 respectively. The MSP have remained same in the case of maize, sunflower seed, moong and urad, groundnut-in-shell and soyabean black.

The Cabinet also gave its approval for moving amendments to the Jalianwala Bagh National Memorial Act, 1951, and the Central Silk Board Amendment Bill, 2005. Financial restructuring of Mineral Exploration Corporation Ltd was also approved.