Expressing grief over the crop loss suffered by farmers, Prime Minister Narendra Modi today said that the input subsidy given to distressed farmers will be enhanced by 50 per cent of the existing amounts. He said this was a major departure from the incremental changes in input subsidy that had been made hitherto.
Announcing a landmark change in norms for input subsidy, the Prime Minister said farmers will now be eligible for input subsidy if 33 percent of their crop has been damaged, as opposed to 50 percent or more, which was the norm till now.
The Prime Minister expressed concern over the problems faced by farmers due to abnormal weather over the past year. He said that helping the farmer in this time of distress is our responsibility, and therefore, the Government had sent teams of Central Ministers to affected areas, to assess the extent of damage. He said the Union and State Governments, the banks and insurance companies would all do their utmost to provide relief to the farmers.
The announcements were made by the Prime Minister in his address during the launch of the Pradhan Mantri MUDRA Yojana.
Indian police on Tuesday fired tear gas and water cannons to halt and scatter a march by thousands of protesting farmers heading for the capital New Delhi to demand better prices for their produce.
Reeling from a crash in commodity prices, more than 50,000 farmers from the northern state of Uttar Pradesh, a top producer of wheat and cane, blocked part of the main highway to the capital.
They also sought loan waivers, cheaper power and tougher action to get sugar mills to pay dues owed for their cane, as discontent in rural areas turns to anger against Prime Minister Narendra Modi, who faces tough general elections next year.
“Despite our repeated requests, the government has failed to help farmers in any meaningful ways,” a farm leader, Dharmendra Malik, told Reuters by telephone from the protest site.
“Left with no choice, we’ve decided to march to Delhi to highlight our plight.”
Cash-strapped sugar companies owe cane growers about 135 billion rupees ($1.9 billion) in the current season. Saddled with huge piles of sugar and hit by a fall in prices, mills have said they are unable to pay farmers on time.
“The state government has initiated a number of steps to help farmers, including a clutch of measures to expedite cane payments to growers,” Uttar Pradesh Chief Minister Yogi Adityanath told video news agency ANI, a Reuters affiliate.
Mills are struggling to export sugar because of lower global prices, Adityanath said.
Television broadcast images of angry farmers clashing with police and driving their tractors into security barriers, in a protest that disrupted rush-hour traffic.
Some farmers were injured when police fired tear gas and water cannon to keep protesters from breaking through barricades to reach New Delhi, the site of events to mark the birth anniversary of India’s apostle of non violence, Mahatma Gandhi.
“It’s ironical that the farmers were brutally beaten on the day of Mahatma Gandhi’s birth anniversary,” opposition leader Rahul Gandhi said.
Farmers had started trickling into the city late on Monday, prompting authorities to bar gatherings of more than four people.
The government has allowed police to “brutally beat up” the farmers, said the opposition Congress party, which ruled India for most of its 70 years since independence from Britain, before losing power to Modi’s Bharatiya Janata Party.