24th July, 2002
Ministry of Agriculture  


CENTRE ANNOUNCES SEVERAL MEASURES TO TACKLE THE DRY SPELL IN THE COUNTRY


The meeting of the Agriculture and Relief Ministers of twelve States with Union Agriculture Minister Shri Ajit Singh here today reviewed the situation arising out of weak monsoon and its implications on agriculture and allied sectors.

The current scenario indicates loss in productivity in may areas although its actual magnitude will be available only in the second half of August as considerable retrieval will be possible wherever rains occur. It was agreed that in the meantime, all out efforts need to be mounted to go in for retrieval operations and sowing of early maturing and drought resistant varieties in as large an area as possible. It was also noted that efforts are already underway to resort to alternative crops based on local conditions and past experience of farming communities. Shri Ajit Singh assured the participants of availability of inputs like seeds and fertilizers and other assistance needed by the State Government. He also underscored the need to initiate urgent and definite steps to tackle the situation in right earnest. He stressed the need to clear dues of farmers and mentioned that the present problems are more likely to affect producers rather than consumers as the availability of food-grains and foreign exchange should ensure that the price-line is guarded.

Augmentation of, fodder and drinking water supply were identified as other areas needing attention of all concerned. Special attention also needs to be focused on smooth running of the Public Distribution System. It was also decided that States would asses on priority basis the extent of additional employment generation required and to also prepare a shelf project to speedily put it in operation should the need arise. The need to keep utmost vigil on the price front was also appreciated. The general feeling was that the coming months would test the capabilities of States and Central Government in tiding over the problems.

The following specific decisions were taken:

(i)                Agricultural input subsidy available to small and marginal farmers in the event of damage to crops will be available to other categories also.

(ii)              Subsidy admissible for certified seeds will also be available for truthfully labelled seeds during the current season in the affected States.

(iii)            States will firm up their arrangements for allocation of free food-grains for additional employment generation for which the initial estimated demand is 41 lakh MTs.

(iv)           States will mobilize resources to meet the cash component for employment generation from their own resources meeting shortfalls, if any, from Relief Funds.

(v)             There will be an immediate updating of contingency plans and these will be put in operation if not already done.

(vi)           Relaxation of last date prescribed under the National Agricultural Insurance Scheme will be examined on a case-to-case basis. 

(vii)         NABARD and cooperative financing institutions will also be urged to review their existing policies of recovery from State Governments and other borrowers in the affected areas keeping in view the current scenario.

It was the consensus in the meeting that while the current scenario gives cause for concern, given the contingent arrangements made by the States and Centre and successful track record of established good practices in drought management, there is no need for alarm. It was unanimously agreed that the situation warrants close coordination between the Central and State Governments to attend to an emergent situation. It was also the consensus that with the resources at their disposal, Governments are in a position to forestall development of serious distress. It was agreed that there will be constant interaction in managing the situation with highest priority being given to mitigate hardship of common people.

The Agriculture and Relief Ministers who attended the meeting were from Andhra Pradesh, Chhattisgarh, Haryana, Himachal Pradesh, Karnataka, Madhya Pradesh, Orissa, Punjab, Rajasthan, Tamil Nadu, Maharashtra & Uttar Pradesh.