Former Prime Minister of India - Shri Atal Bihari Vajpayee

Statement by the Prime Minister Shri Atal Bihari Vajpayee

~The Government of India has been taking urgent steps to deal with the grave problem arising from failure of South-West monsoon in different parts of the country during this kharif season. We have already released Rs. 1186 crores under Calamity Relief Fund to 14 affected States, apart from 13.25 lakh MT of foodgrains amounting to Rs. 1500 crores. Substantial advance releases have also been made under Rural Water Supply Programme and Sampoorna Gramin Rozgar Yojana.

The Task Force headed by the Deputy Prime Minister is meeting soon to decide further release of funds and foodgrains.

In the meantime, considering the gravity of the situation, I have decided to provide direct relief to our farmers from payment of crop loans extended to them. The Government has, therefore, decided not to effect any recovery of crop loan, including interest, during the current financial year. This benefit will cover farmers in the affected areas, including the plantation sector.

While the respective State Governments would be taking all possible measures to protect the interests of plantation sector, the Central Government has now decided to create a corpus of Rs. 500 crores, with a substantial contribution coming from Government of India, apart from the contribution from State Governments and a small contribution from the growers. Income from this corpus will be used for providing relief to participating growers when the market conditions are depressed. The details of the scheme will be finalised shortly in consultation with the Finance Ministry. Repayment of loans and interest given to coffee growers is being rescheduled upto a maximum of 11 years.

I want to emphasise that efforts towards modernisation of the processing industry in the plantation sector would get full support from the Central Government.

Effects of the drought will have to be tackled by us with fortitude, prudence and unitedly until at least May/ June 2003. The Government of India is determined to do its utmost to minimise the farmer’s difficulties. It is expected that with all these measures, the State Governments will also be able to gear up the field level machinery and ensure that benefits reach all the farmers~.