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LATEST NEWS UPDATES | Ahead of 2019 polls, Centre readies big farm relief plan -Surojit Gupta

Ahead of 2019 polls, Centre readies big farm relief plan -Surojit Gupta

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published Published on Dec 28, 2018   modified Modified on Dec 28, 2018
-The Times of India

NEW DELHI: The Centre is working on a plan to provide relief to farmers and is weighing options on a direct benefit transfer scheme for the distressed sector modelled on the Telangana system.

Several rounds of discussions have been held and the view emerging within the government favours a limited direct benefit transfer scheme to help small and marginal farmers meet expenses for seeds, fertilisers, pesticides and labour.

Sources said the cost of such a scheme would work out to about Rs 1.25 lakh crore and could be jointly borne by the Centre and states. Some of the participants suggested a 70:30 split of the cost between the Centre and states.

“It will be a political call. Cost and the fast-shrinking window before Lok Sabha polls are challenges. But BJP being in power in many states can be a help. Even Congress-ruled states will be on board because it is aimed at easing farmers’ distress,” said a senior official, while referring to the amount and time needed to roll out the plan, adding that a final decision was yet to be taken.

The other option on the table is “price deficiency payment”, which has been suggested in the Niti Aayog’s medium term strategy. Under this plan, a subsidy would be provided in case the price falls below an MSP (minimum support price)-linked threshold.

Under this Niti Aayog proposal, each farmer would register her crop and acreage sown with the nearest APMC mandi. If the market price falls below the floor price, the farmer would be entitled to the difference up to a maximum of 10% of the MSP-linked price that could be paid via direct benefit transfer (DBT) into an Aadhaar-linked bank account.

Prime Minister Narendra Modi has met BJP president Amit Shah, finance minister Arun Jaitley and agriculture minister Radha Mohan Singh to discuss farm distress, triggering talk that the government may soon unveil a mega plan to tackle the problem.

The urgency to provide relief to the agriculture sector comes against the backdrop of BJP’s losses in three key state elections where farm distress emerged as a major issue. The promise of farm loan waiver by Congress seemed to have attracted voters in Chhattisgarh and Rajasthan.

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The Times of India, 28 December, 2018, https://timesofindia.indiatimes.com/india/ahead-of-2019-polls-centre-readies-big-farm-relief-plan/articleshow/67279169.cms


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