Gujarat govt announces Rs. 1100 crore relief for farmers

Gujarat government today announced Rs. 1100 crore relief package for farmers. It includes Rs. 500 crore relief in electricity bills and Rs. 600 crore relief in interest on short term loan(through 50% waiver). In addition to this, the state government also pointed out that it is extending Rs. 700 crore assistance to farmers during ongoing Ravi Krushi Mahotsav statewide. Ministers Nitin Patel, Bhupendrasinh Chudasama and Babubhai Bokhiria in a statement said that as per an estimate Gujarat will produce 1.20 crore bales of cotton this year.While each year bales were exported to China and other nations, this year those countries have witnessed bumper produce of cotton and they have enough stock which has resulted to lower global purchase. They in a statement further said that farmers have taken Rs. 21,000 crore as short term crop loan from cooperative and nationalized banks. As per this, they will need to pay Rs. 11,00 crore as interest. The state government has taken a decision to pay half of this(which comes to around Rs. 600 crore) from its exchequer to provide relief to farmers. The state government gives Rs. 4,000 crore subsidy to farmers in electricity bills. Farmers pay about Rs. 900 crore as electricity bill. This year, government will pay half the bill from its exchequer(which comes to Rs. 500 crore) to give relief to farmers. Reacting to government announcement, Bharatiya Kiasan Sangh(BKS), Gujarat unit president Maganbhai Patel welcomed government's announcement but added that the government has so far accepted only 50% demands of farmers. He will sit with executive body of Gujarat unit of BKS and take decision after that. Maganbahi expressed concern over prices of all agriculture produce going down below Minimum Support Price(MSP).