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With unseasonal rains and hailstorms leading to massive loss to agriculture in around 10 states, the Centre has increased the amount of assistance to farmers by 50 per cent.
The assistance will also be automatically reviewed in April each year based on the annual inflation derived from the Wholesale Price Index (WPI) and rounded off to the next multiple of 100. This would ensure that from now on, assistance to farmers will be linked to the WPI and could get automatically increased.
Aid to farmers is provided under the National Disaster Response Fund (NDRF) and State Disaster Response Fund (SDRF), in which the Centre contributes 75 per cent while states share the rest.
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“Though the norms have been revised with effect from April 1, 2015, the government has ensured farmers affected by the rain and hailstorm in February and March as well will be covered under the increased compensation,” said an official statement released on Friday.
The rains and hailstorm, which have hit northern India since end-February have damaged crops in 8.5 million hectares of land, according to the latest estimates, and forced several farmers to commit suicide. The highest loss has been in standing wheat crop and mustard crop, which was ready for harvest.
According to the 13th Finance Commission, whose recommendation was valid from 2010-2015, the Centre disbursed Rs 33,580 crore to the states as disaster relief. Under the 14th Finance Commission, whose recommendations the Narendra Modi government has accepted, the transfers to states for disaster relief is expected Rs 61,219 crore, an increase of about 80 per cent.
“The norms of NDRF, SDRF will automatically be reviewed during April each year based on annual inflation derived from wholesale price index and would be rounded off to the next multiple of 100,” the statement added.
On Wednesday, Modi had announced an increase in the compensation to farmers by 50 per cent and lowered the eligibility criteria for crop damage to 33 per cent from 50 per cent.
According to the statement, banks have been directed to restructure the crop loans and increase the repayment period, while insurance companies have been told to settle all insurance claims within 45 days of end of the risk period.
Under the Modified National Insurance Scheme, the farmers are eligible to get claim of up to 25 per cent without waiting for the result of crop cutting experiments. “The state governments have also been directed to hold meeting with insurance companies so that the process of settlement of claims can be expedited,” the statement added.
The home ministry has also written to states to set aside 10 per cent of SDRF fund reserved for ‘local disasters’ such as heavy rain, which are to be declared at par with national disasters and use this money for distressed farmers.
Under the new norms, in case of agriculture crops, horticulture crops and annual plantation crops, the input subsidy has been raised from Rs 4,500 a hectare to Rs 6,800 a hectare in rainfed areas and restricted to sown areas. In the assured irrigated areas, it has been increased from Rs 9,000 a hectare to Rs 13,500 a hectare. In case of perennial crops, the quantum of input subsidy has been raised from Rs 12,000 to Rs 18,000 a hectare.
The statement said that for those engaged in sericulture, the input subsidy has been upped from Rs 3,200-4,000 a hectare to Rs 4,800-6,000 a hectare.
Among other measures, as part of the increase in assistance under NDRF, henceforth, farmers who loses land owing to silting in flood-hit areas, will get a compensation of Rs 12,200 a hectare against the earlier Rs 8,100 a hectare.
“This will also be applicable to removal of debris of agricultural land in hilly areas and restoration or repair of fish farms,” the statement added.
In case a substantial portion of land has been lost due to land slide, avalanche, or change of course of rivers, the existing level of financial assistance has been increased from Rs 25,000 a hectare to Rs 37,500 a hectare for small and marginal farmers.
The assistance to farmers for replacement of milch animals lost in natural calamities has been raised from Rs 16,400 to Rs 30,000 for buffalo, cow, camel, yak etc. For sheep and goat, the same has been raised from Rs 1,650 to Rs 3,000.
In case of replacement of draught animals, the quantum of financial assistance has been increased from Rs 15,000 to Rs 25,000 for camel, horse, bullock, etc.
That apart, teams of senior ministers and officials from the agriculture ministry and other related ministries have been touring the affected areas to assess the loss.
The agriculture ministry has also directed Uttar Pradesh, Maharashtra and West Bengal to use the funds available under the newly-created Price Stabilisation Fund to intervene in the market as and when the price of onions and potatoes increases.
