State asks Centre to extend special package for ryots

The state government has asked the Central government to extend a special package for the farmers who were dislocated by the recent unprecedented losses due to a series of heavy rains apart from increasing the input subsidy and increase in the purchase of damaged grains.

The crops' loss estimation has been put at Rs 12,500 crore. While appealing to the Centre for increasing the input subsidy, the state has announced that it will provide an input subsidy of Rs 1019 crore to the farmers.

The Central government was also asked to direct the Reserve Bank to reschedule the farmers' loans and on its part the Kiran Kumar Reddy government decided to cancel the interest component on loans to the tune of Rs 350 crore.

The procurement of damaged grains, whether it is discoloured or broken was the most contentious issue which was discussed in the Cabinet meeting at the Secretariat on Thursday.

The earlier decision was that the damaged grains to the extent of 10 percent would be purchased from the farmers.

Now the Cabinet decided to ask the Centre to relax the rules and sought additional exemptions to direct the FCI to procure 20 percent damaged grains from farmers.

Similarly the issue of procuring 50 percent and above damaged grains is under active consideration of the government.

Till December 28, 24 lakh tonnes of grains entered the market. Out of that over 20 lakh tonnes has been purchased from the farmers, informed the minister for Information and Public Relations D K Aruna, who briefed the media persons revealed.

Balance of the left over grains would be procured from the farmers in January or February 2011. Supervisory officers will monitor the process under the control of district collectors.

Out of Rs 400 crore released by the centre, Rs 300 crore was given as grant and Rs 100 crore as advance.

Stating that the state government would make efforts to rescue the distressed farmers, she said the government would work to provide the input subsidy as promised.

During the Kharif season this year, the paddy was damaged in 12.61 lakh hectares, cotton in 1.91 lakh hectares, ground nut in 1.28 lakh hectares and others in 2.55 lakh hectares by the recent floods that occurred on four different occasions. The Kharif crop was damaged in two consecutive years forcing the farmers to destitution.

Due to continuous rains the farmers could not retrieve as they faced a twofold problem - reduction in yield and quality. The grains were discoloured and the damage was more than 50 percent, the government stated.

Under JAL cyclone, the cotton crop was damaged at the picking stages itself. The cotton seed was affected in Nalgonda, Khammam, Prakasam, Guntur and Krishna districts.