The Cabinet Committee on Economic Affairs (CCEA) meet chaired by Prime Minister Narendra Modi on 12 August 2015 approved the 300-crore rupees package to save standing kharif agriculture and horticulture crops from weak monsoon.
The package will help farmers to be better equipped to deal with challenges posed by delayed and aberrant monsoon, as the state governments will be able to initiate immediate remedial measures to save standing agricultural crops and perennial orchards in rainfall deficient districts.
Besides, the CCEA also gave its nod to a soft loan scheme to the extent of 6000 crore rupees for the current sugar season. The decision was taken to make sure that the farmers are paid their dues expeditiously. It also mandated that banks pass on the financial assistance directly to the cane growers after obtaining the list from the mills.
In order to incentivize mills to clear their dues expeditiously, the government had earlier mandated that soft loans will be provided to only those units which have cleared at least 50 percent of their outstanding arrears by 30 June 2015.
The Government has provided one-year moratorium on this loan, and will bear the interest subvention cost to the extent of 600 crore rupees for the same period.
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When: 12 August 2015