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Agri ministry finalises Rs 3560-cr drought package

Agriculture Minister Ajit Singh said on Thursday that his ministry has forwarded recommendations on drought relief to the Cabinet and a decision is expected shortly on the Rs 3560-crore (Rs 35.6 billion) package.

"Based on the recommendations of the Commission on Agriculture Costs and Prices, my ministry has prepared a note and sent it to the Cabinet for slashing fertilser prices to the pre-budget levels, waiving interest on loans and cutting ration shop prices for foodgrains," Singh said in New Delhi.

Speaking on the sidelines of an agro-tech function, he said his ministry has accepted all the recommendations of the CACP including doing away with the distinction between families below and above the poverty line for disbursal of grains from the ration shops in drought-hit areas.

A cut in fertiliser prices would cost around Rs 560 crore (Rs 5.6 billion) to the exchequer while the proposed waiving of interest is valued at Rs 2000 crore (Rs 20 billion).

Another Rs 2000 crore (Rs 20 billion) is the projected cost of inputs like seeds, sprinklers, new irrigation equipment and repair of older ones, and providing agriculture mini-kits to the farmers.

However, around 50 per cent cost of inputs package is already being borne by the amount sanctioned from the Calamity Relief Fund and only an additional Rs 1000 crore (Rs 10 billion) will be required.

The minister said the government cannot be accused of populism as the package is entirely in line with the suggestions made by the CACP.

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