He also said, interest rates on rescheduled crop loans have been reduced from 12 per cent to 7 per cent for this fiscal in the drought-hit states. He said, Monsoon deficiency has also come down to 8 per cent so far. He said, 71 per cent of the country received normal rainfall.
Pawar said, the deficient rainfall has impacted sowing which is less by around nine lakh hectrares compared to last year. He said, coarse cereals, pulses and oils seed are more affected in states of Gujarat, Karnataka and Rajasthan. The Agricultural Minister said, the GoM on drought also decided to release funds under the National Rural Drinking Water Program to the tune of 286 crore rupees to Karnataka, 245.86 crore to Gujarat, 160.7 crore to Maharashtra, 115.7 crore to Haryana and 37.2 crore to Punjab.
The incentives have also been extended for drought hit areas under the Fodder Scheme for Cattle rearing and Seed subsidy.
During agrarian crisis, crop loans get converted into term loans for a longer period of three years but at a higher interest rate of 12 per cent. Pawar said the Centre and state would provide interest subvention to the tune of 261 crore rupees under a NABARD scheme to save horticulture crops in drought-hit areas.
The EGoM approved 846 crore rupees to Karnataka, Maharashtra, Gujarat and Haryana under the National Rural Drinking Water Programme (NRDWP) and relaxed some norms.
This allocation is the part of second installment under the NRDWP. EGoM has relaxed the condition for submission of utilisation certificate for release of funds under this scheme for drought-hit states till December 31, 2012.
Of 846 crore rupees, 286.82 crore will be released to Karnataka, 245.86 crore to Gujarat, 160.7 crore to Maharashtra, 115.47 crore to Haryana and 37.2 crore to Punjab under the NRDWP.
The EGoM also approved 261 crore rupees, to be shared equally by the Centre and state, for providing interest subvention on loans provided to farmers to save horticultural crops in drought-hit states under a NABARD scheme.
To improve fodder supply in drought-hit states, Pawar said the EGoM has approved supply of feed concentrate of one kilo per cattle per day at subsidised rate of 25-50 per cent of the cost. The state will decide the actual subsidy. Under the centrally sponsored fodder related schemes, the minister said the EGoM has given nod for increasing the central share on setting up of fodder drop making units to 75 per cent from 50 per cent for this fiscal, especially to cooperative, milk unions, federation and state establishments.
It has decided to raise the component of establishment of fodder bank with the budget provision for this year.
The panel of ministers also decided to extend subsidy on seeds to farmers till March 2013 in drought-hit areas.
In the last EGoM, the government had allocated 2,000 crore rupees under various schemes to boost supply of drinking water, fodder and seeds in drought-hit states. It had announced diesel subsidy, raised ceiling on seed subsidies.
