Question : COMPENSATION TO FARMERS FOR SALE OF PADDY AT LOWER RATES



(a) whether the Government of Punjab is compensating the farmers for the losses suffered by them for sale of their paddy at lower price;

(b) if so, whether the Union Government propose to extend the same facility to the farmers of other States also;

(c) if so, the details thereof; and

(d) if not, the reasons therefor?

Answer given by the minister


MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE (SHRI SHRIPAD Y. NAIK)

(a): As per the decisions taken in the meeting of Punjab delegation led by the Chief Minister of Punjab with the Union Finance Minister and Minister of Consumer Affairs, & Public Distribution on 15.10.2000, it was decided that in respect of farmers whose paddy has been purchased at below MSP from 21.9.2000 to 14.10.2000, the State Govt. will make good the difference. The total expenditure arising out of this difference shall be restricted to a maximum of Rs.100 crores. Ministry of Finance shall compensate to an extent of 50% to the Punjab Govt. for this expenditure.

As per the information received from Govt. of Punjab, the State Govt. has released a fund of Rs.100 crore to compensate the farmers. Accordingly, the work of compensation has been started in the State and as on 26.7.2001 Rs.61.30 crore has been distributed to the farmers concerned.

(b)to(d): No such proposal is under consideration of the Government at present.