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Govt announces Rs 400-crore drought relief package

Bowing to the demands of the drought-hit states, the Centre announced a drought relief package of over Rs 400-crore (Rs 4-billion) including an additional Rs 20 per quintal for both grades of paddy beyond MSPs of Rs 530 and Rs 560 per quintal respectively.

Agriculture Minister Ajit Singh said: "This should not be considered as a hike in MSP (minimum support price)."

The package was finalised at a meeting between Prime Minister Atal Bihari Vajpayee and a delegation comprising of Haryana Chief Minister Om Prakash Chautala, former Punjab Chief Minister Prakash Singh Badal and Telgu Desam Leader K Yerran Naidu amongst others.

Announcing the package after the hour-long meeting, Ajit Singh, who also attended the meeting, said the additional relief for soyabean is Rs 10 per quintal, for groundnut Rs 20 per quintal and for sunflower it is Rs 15 per quintal.

He said relief had also been worked out for coarse cereals, which had been left untouched initially. For maize the additional relief is Rs 5 per quintal, for bajra Rs 10 and for ragi Rs 5.

Ajit singh said the relief is based on a second report submitted by the Commission on Agricultural Costs and Prices last week, which apart from additional support over and above the MSP has also recommended roll back in fertiliser prices to pre-budget levels and writing off interest on farm loans.

He said while the relief on procurement prices was finalised today, the other two recommendations would be considered in the next meeting of the Cabinet for which the agriculture ministry would be sending a 'note'.

"Procurement is scheduled to begin on Tuesday, so the additional relief over the MSP assumed urgency," he said.

He said the relief was Rs 5 a quintal each for moong and urad dals and sesame seeds and Rs 20 per quintal for raw cotton.

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