New Delhi, July 17: A day after announcing steep cut in interest rate on farm loans, government today doled out a one-time financial package of Rs 600 crore to sugarcane farmers, especially in Uttar Pradesh, Uttaranchal and Haryana. This was announced by Agriculture Minister Rajnath Singh after an hour-long meeting with Prime Minister Atal Bihari Vajpayee and Finance Minister Jaswant Singh.
Though Food Minister Sharad Yadav was not present at the meeting convened by the Prime Minister at the instance of Rajnath Singh, official sources said that Yadav had already agreed on the formula.
This financial assistance, to be given from the sugarcane development fund under the food ministry, would be provided to the concerned states. Seized of the matter ever since he took over as the agriculture minister, Singh said the assistance would be used for paying arrears to farmers, which had come about due to differences between State Advisory Price (SAP) and Statutory Minimum Price (SMP).
The assistance would mainly benefit sugarcane farmers in Uttar Pradesh, Uttaranchal and Haryana. Details of the package would be worked out with the respective states, he said.
The package would also be applicable in states which announce their own state administrative price for the crop, he said. "This will be a one-time financial package. Talks with respective states are on and details will be finalised within seven to ten days," he said. Bureau Report