India: Compensation for crop damage increased by 50%
The move comes when untimely rain and hail have destroyed standing rabi crops and there is resentment among farmers over the government's land acquisition Bill.
"Compensation will be increased one and a half times. If he (the farmer) got Rs 100 earlier, he will get Rs 150 now," Modi said at the launch of the Micro Units Development and Refinance Agency (MUDRA) in New Delhi.
The prime minister also asked banks to restructure their loans in affected areas. On this, Reserve Bank of India Governor Raghuram Rajan has already said necessary instructions have been issued to lenders.
Modi also asked insurance firms to help farmers get claims for their damaged crops.
According to the 13th Finance Commission, whose recommendations were for 2010 to 2015, the Centre disbursed Rs 335.8 million to states as disaster relief. The 14th Finance Commission, whose recommendations have been accepted by the Narendra Modi government, the transfers to states for disaster relief is expected to be to the tune of Rs 61,219 crore during 2015-2020, an increase of about 80 per cent.
Last month, the government had slashed its estimate of crop damage due to unseasonal rain and hail within two days of assessment --- from 18 million hectares to 10.6 million hectares. Now, it has reduced it to 8.5 million hectares.
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