Hyderabad: In a significant move, the Chandrababu Naidu government has enhanced the ex gratia from Rs 1 lakh to Rs 3.5 lakh and crop loan waiver limit from Rs 50,000 to Rs 1.50 lakh to mitigate the distress and debt of family members of farmers who have committed suicide.

In addition, other benefits to be extended to them are admission of children in social welfare schools and hostels, allotment of houses under IAY Scheme and economic support under government schemes and pensions.

Orders to this effect were issued by the revenue department principal secretary J.C. Sharma on Thursday, which stated that the enhanced ex gratia of Rs 3.50 lakh is meant for the family of deceased farmer towards rehabilitation of the family. Likewise, the cap on loan settlement limit was hiked from Rs 50,000 to Rs 1.50 lakh to debtors as one time settlement to wipe off all liabilities on families of deceased farmers.

These orders are an improvement of earlier orders issued on June 1, 2004 wherein the state had evolved a ‘special package’ to support families in distress. As per the GO, issued in 2004, an ex gratia of Rs 1 lakh and Rs 50,000 as one time settlement of crop loan was envisaged. Mr Sharma said it was brought to the notice of state that financial aid, envisaged in 2004, was not commensurate in today’s economic circumstances.

The ceiling limit fixed up to Rs 50,000 under the loan settlement package paid to debtors, as one time settlement, to clear off liabilities also is a very small amount compared to the debts with institutional and private money lenders raised by the farmers.

This is essentially due to escalation of prices of agrarian farm in-puts, fertilizers, and investments etc. A study of debts of farmers reveals that, 80 percent of the deceased farmers, had debts from Rs 2 lakh to Rs 10 lakh due to repeated crop failures, and successive droughts.

It is further observed that heavy investments were made in drilling bore wells. Repeated drilling and failure only added to the debt. Similarly, an ex-gratia of Rs. 1lakh is insufficient for the distressed family under the present circumstances, particularly in drought prone districts. Hence, a policy decision has been taken to enhance the ex-gratia amount to Rs 3.5 lakh and the loan settlement amount from Rs 50,000 to Rs1.50 lakh, JC Sharma said. He requested all the District Collectors to immediately initiate necessary action in the matter accordingly.