The Gujarat government on Monday announced a relief package of Rs. 1,100 crore for farmers in the State.
The package includes Rs. 600 crore worth of subsidy on interest for agriculture loans and Rs. 500 crore on power bills.
“This year, the district cooperative banks and nationalized banks have disbursed loans to the tune of Rs. 2,100 crore. The interest on this amount is Rs. 1,200. The State government has decided to cover 50 per cent of the interest by paying Rs. 600 crore to the banks. Similarly, it would give Rs. 500 crore to power companies to cover 50 per cent of the total electricity bill of farmers, which stands at Rs. 900 crore,” Gujarat Health Minister Nitin Patel told reporters here.
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The announcement comes a day after a meeting with the RSS-affiliated Bhartiya Kisan Sangh (BKS), which has been agitating for a minimum support price for cotton.
However, Congress spokesperson Manish Doshi said the government had not addressed the main issue of minimum support price.