Drought relief comes in job scheme

The decision to increase the number of guaranteed work days under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) from 100 to 150 days was taken on Tuesday in a meeting of the Empowered Group of Ministers (EGoM). Apart from increasing the number of days, the interest rates on crop loans has been cut to seven percent for one year. These decisions were taken to provide relief to farmers in drought-affected states.

'Various proposals were discussed in the meeting. It approved slashing of interest rate on rescheduled crop loans of drought-hit farmers to seven per cent from 12 per cent,' said a source.

The agriculture ministry had proposed that a cut in interest rate on crop loans should be extended for least five years, but the EGoM approved it for one year. The EGoM suggested that this proposal should be taken up by the agriculture ministry to the Cabinet Committee on Economic Affairs.

During  drought, crop loans automatically get converted into term loans for a longer period of three years but the interest rate is kept at 12 per cent. Also raising the number of days under MGNREGA in drought-affected states has been approved for one year.

These decisions were approved by the EGoM on drought headed by the agriculture minister Sharad Pawar. Karnataka, Gujarat, Maharashtra and Rajasthan  have declared drought in more than 390 taluks. 

In the last EGoM, the government had announced diesel subsidy, enhanced ceiling on subsidies on seeds and channelised funds under various schemes to boost drinking water and fodder supply for livestock.