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Drought relief for farmers

By Gargi Parsai

NEW DELHI DEC. 12. The Commission for Agriculture Costs and Prices has recommended payment of Rs. 10 per quintal as drought relief to farmers, over and above the minimum support price (MSP) of Rs. 650 per quintal for rabi wheat.

However, the drought relief payment of Rs. 20 per quintal approved by the Government for kharif has not been made so far. The controversy is about the account from which the payment should be made. If it is to be treated as "relief'' then it should come from a "relief quota'', such as the Prime Minister's Relief Fund. But if it has to be paid as "bonus'', then it should come from the Food Corporation of India which is the procuring agency for the Food Ministry.

The CACP has reservations about categorising the additional money as "bonus'' as it gets added on to next year's base price for announcement of the MSP. The Finance Ministry has to take a view on this, despite the Cabinet's approval.

For the rabi MSP too, initially the CACP had suggested a freeze on the MSP for wheat at last year's price of Rs. 640 per quintal. But in view of the drought situation resulting in higher cost of inputs, the Ministry of Agriculture, asked the CACP to review its recommendation and it recommended payment of Rs. 10 per quintal drought relief for the rabi season. Its recommendation would now go to the Union Cabinet for approval.

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