Date:26/07/2006 URL: http://www.thehindubusinessline.com/2006/07/26/stories/2006072604002300.htm

Back Kerala seeks interest-free loans for paddy, coconut

Our Bureau

`Policy changes vital to revitalise farm sector'

The State has suffered an annual loss of Rs 7,000 crore over the past six years owing to fall in prices, rise in production cost and low productivity.

Thiruvananthapuram , July 25

The Kerala Government has sought interest-free loans up to Rs 2 lakh for paddy and coconut farmers in the State. This was one of the suggestions made by the Government to the members of the National Commission for Farmers who were here.

The Minister for Agriculture, Mr Mullakara Rethnakaran, has told the commission that a loan package for paddy and coconut farmers with a maximum limit of five years was imperative for the State.

Central Assistance

The Minister said that the distribution of agricultural lands in Kerala were different from other States in the country. While the farmers in the Northern States have vast tracts of land, the farmers in Kerala have only small land holdings.

He also pointed out that contract and corporate farming were not suited for the State and the farmers should be given central assistance from agricultural co-operative societies as in Anand in Gujarat.

He noted that the Centre should consider the loss sustained by each farmer, and not just the extent of land holdings, while assessing the loss incurred due to natural calamities. The type of crops, the differences in the system of farming and density of population should also be taken into account while assessing the loss.

IMPACT ON ECONOMY

He said that the new economic policies of the Centre and the changes in the export-import policy have had a direct bearing on the agrarian economy of the State.

About 85 per cent of the agricultural sector, including rubber, coconut, pepper, coffee and tea is facing problems. Spices and cash crops are the worst affected by the new policies.

The Minister said that the State suffered an annual loss of Rs 7,000 crore over the past six years owing to fall in prices, rise in production cost and low productivity. Policy changes were vital to revitalise the agriculture sector, he added.