The Union government will increase the number of work days under the Mahatma Gandhi National Rural Employment Guarantee Scheme from 100 to 150 in places where the recent unseasonal rain and hailstorms have affected crops. The relief package will include cash compensation.
In addition, Prime Minister Narendra Modi has sought recommendations from NITI Aayog on how insurance can be used to protect farmers from losses arising out of crop damage, Arvind Panagariya, vice-chairman of the organisation, said.
“The Finance Ministry and the Agriculture Ministry are readying a relief package that will include cash compensation for damaged crops to farmers hit by the unseasonal rain and hailstorms,” Dr. Panagariya told The Hindu . “It will not be possible for the Finance Ministry to provide funds to fully compensate farmers, but some cash relief will be provided.”
Union Food Minister Ram Vilas Paswan has proposed enhanced wheat allocations to the affected families under the public distribution system. An inter-ministerial group, headed by Union Home Minister Rajnath Singh, deliberating upon relief for farmers has, however, rejected the proposal. Agriculture Minister Radha Mohan Singh and Finance Minister Arun Jaitley are the members of the group.
A source in the inter-ministerial group said the cash compensation would be paid out from the State Disaster Relief Fund (SDRF) and the National Disaster Relief Fund (NDRF). “Both also allow for food compensation in case of crop damage … That option is also available,” the source said. The Centre allocates more funds to the States in case the expenditure is more than the money available in the SDRF.
