PM promises compensation to farmers who suffered crop damage
NEW DELHI: Prime Minister Narendra Modi said that farmers who lost lost crop due to natural calamity will be compensated. Giving details during the launch of Mudra Bank, Modi said, “Eligibility for getting compensation for crop damage due to natural calamity is now lowered from 50% of crop area to 33%.
” He further added that banks have been asked to restructure loans of farmers hit by unseasonal rains and insurers to pro-actively settle their claims.” Trying to provide some respite to farmers, Modi said that the quantum of compensation to affected farmers increased by 50%.
Raghuram Rajan, governor, Reserve Bank of India (RBI), in his bi-monthly monetary policy statement on Tuesday said, “Initial estimates indicate that as much as 17% of the sown area under the rabi crop may have been affected though the precise extent of the damage remains to be determined.”
He also said that the adverse impact of unseasonal rains and hailstorms in March is still unfolding.Rajan also talked about a possible hike in inflation due to increasing food prices on the bank of unseasonal rains, el nino leading to less than normal monsoons.
