Decisions for meeting situation of deficit rainfall , Soft loan to sugar mills and drug regulatory system
Decisions for meeting situation of deficit rainfall
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved the proposal of the Department of Agriculture & Cooperation, Ministry of Agriculture for initiating a series of farmer friendly interventions in the wake of deficient rainfall as per IMD forecast of below average monsoon. This will help in dealing with challenges posed by delayed and aberrant monsoon. Immediate remedial measures are to be initiated to save standing agricultural crops and perennial orchards.
CCEA approved following interventions/measures to be initiated by State governments in the eventuality of drought deficit rainfall situation:
a) Implementation of Diesel Subsidy Scheme for protective irrigation of crops with an allocation of Rs. 100 crore;
b) Enhancement of ceiling on seed subsidy to partially recompense the farmer for the additional expenditure incurred in resowing and purchasing appropriate varieties of seeds;
c) Implementation of drought mitigating interventions on perennial horticulture crops with an additional allocation of Rs. 150 crore under Mission for Integrated Development of Horticulture (MIDH);
d) Implementation of Additional Fodder Development Programme (AFDP) as a sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY) with an allocation of Rs. 50 crore during 2015-16 for ensuring availability of fodder;
These measures have been sanctioned with an additional allocation of Rs. 300 crore during current financial year. Actual expenditure may vary depending upon the drought situation. These interventions/measures will be applicable in all rainfall deficit areas of the country.
As a result of the above interventions, farmers will be better equipped to deal with challenges posed by delayed and aberrant monsoon, as State governments will be able to initiate immediate remedial measures to save standing agricultural crops and perennial orchards in rainfall deficient districts. Besides, farmers will be able procure seeds for contingent cropping where normal sowing window is no longer available or resowing is required. Appropriate measures to ensure availability of fodder and feed for livestock will be possible because of these interventions. These intervention will help in minimizing the adverse impact of deficient rainfall on agriculture production.
Background:
South West Monsoon (June to September) contributes about 80% of total rainfall of the country. Timely onset and even spatial distribution of rainfall is crucial for cultivation of kharif crops that account for about 90% of paddy, 70% of coarse cereals and 70% of oilseed production of the country. As per IMD Long Range Forecast for rainfall during second half (August & September) released on 03.08.2015, the rainfall over the country as a whole during the second half of the season is likely to be 84% of the Long Period Average (LPA) with a model error of ±8%. The rainfall during August is likely to be 90% ± 9 % as was forecast in June. The season (June to September) rainfall over the country as a whole is likely to be 88% of LPA with a model error of ±4% as was forecast in June.
As per the report of the IMD till today there has been deficit rainfall for states of Meghalaya(-33%), Nagaland(-58%), Manipur(-20%), Mizoram (-30%) , Bihar(-31%), Uttar Pradesh(-32%), Haryana(-24%), Punjab(-26%), Goa(-22%), Maharashtra(-26%), Telangana(-22%), AP(-24%), Karnataka (-23%), and Kerala(-30%).
CCEA approved following interventions/measures to be initiated by State governments in the eventuality of drought deficit rainfall situation:
a) Implementation of Diesel Subsidy Scheme for protective irrigation of crops with an allocation of Rs. 100 crore;
b) Enhancement of ceiling on seed subsidy to partially recompense the farmer for the additional expenditure incurred in resowing and purchasing appropriate varieties of seeds;
c) Implementation of drought mitigating interventions on perennial horticulture crops with an additional allocation of Rs. 150 crore under Mission for Integrated Development of Horticulture (MIDH);
d) Implementation of Additional Fodder Development Programme (AFDP) as a sub-scheme of Rashtriya Krishi Vikas Yojana (RKVY) with an allocation of Rs. 50 crore during 2015-16 for ensuring availability of fodder;
These measures have been sanctioned with an additional allocation of Rs. 300 crore during current financial year. Actual expenditure may vary depending upon the drought situation. These interventions/measures will be applicable in all rainfall deficit areas of the country.
As a result of the above interventions, farmers will be better equipped to deal with challenges posed by delayed and aberrant monsoon, as State governments will be able to initiate immediate remedial measures to save standing agricultural crops and perennial orchards in rainfall deficient districts. Besides, farmers will be able procure seeds for contingent cropping where normal sowing window is no longer available or resowing is required. Appropriate measures to ensure availability of fodder and feed for livestock will be possible because of these interventions. These intervention will help in minimizing the adverse impact of deficient rainfall on agriculture production.
Background:
South West Monsoon (June to September) contributes about 80% of total rainfall of the country. Timely onset and even spatial distribution of rainfall is crucial for cultivation of kharif crops that account for about 90% of paddy, 70% of coarse cereals and 70% of oilseed production of the country. As per IMD Long Range Forecast for rainfall during second half (August & September) released on 03.08.2015, the rainfall over the country as a whole during the second half of the season is likely to be 84% of the Long Period Average (LPA) with a model error of ±8%. The rainfall during August is likely to be 90% ± 9 % as was forecast in June. The season (June to September) rainfall over the country as a whole is likely to be 88% of LPA with a model error of ±4% as was forecast in June.
As per the report of the IMD till today there has been deficit rainfall for states of Meghalaya(-33%), Nagaland(-58%), Manipur(-20%), Mizoram (-30%) , Bihar(-31%), Uttar Pradesh(-32%), Haryana(-24%), Punjab(-26%), Goa(-22%), Maharashtra(-26%), Telangana(-22%), AP(-24%), Karnataka (-23%), and Kerala(-30%).
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Soft loan to sugar mills to facilitate payment of cane dues of farmers for the current sugar season 2014-15
To further infuse liquidity into the sugar industry and facilitate clearing of cane dues arrears, the Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved a soft loan scheme to the extent of Rs. 6000 crore for the current sugar season. This will ensure that farmers are paid their dues expeditiously. The CCEA has further mandated that banks pass on the financial assistance directly to the cane growers after obtaining the list from the mills. Furthermore, 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 30.6.2015. The Government has provided one year moratorium on this loan, and will bear the interest subvention cost to the extent of Rs. 600 crore for the said period.
As a result of the above interventions, the cane price arrears are steadily reducing and presently stand at Rs.15,400 crore. To further liquidation of arrears and increase coverage of the soft loan scheme, the government has decided to extend the date of achieving eligibility under the soft loan scheme from 30.6.2015 to 31.8.2015. Now mills are required to discharge 50 percent of cane dues payable by 31.8.2015 to become eligible for the loan. This will extend benefits to larger number of farmers by enabling more mills to avail the benefits of the scheme. It has also been decided that after clearing cane dues of farmers, subsequent balance, if any, will be credited into the mill accounts. This will benefit about 150 additional sugar mills which had proactively liquidated more than 90 percent of their cane dues payable. This would ensure that mills are incentivized for arranging bridge finances for timely clearance of cane dues to farmers.
Sustained surpluses of production over domestic consumption has created substantial inventories, depressing price sentiments and creating liquidity stress which has resulted in cane dues arrears.
The Central Government has taken several steps to mitigate the situation by infusing liquidity into the sector. The export incentive on raw sugar has been increased from Rs 3200/MT to Rs. 4000/MT. Funds have been allocated to support 14 lac MT (LMT) of raw sugar exports as against 7.5 LMT achieved last year.
Remunerative prices for Ethanol supplied for blending has been fixed. Prices have been increased to Rs. 49 per liter, a substantial increase over previous years. As a result, the supplies of ethanol for blending have increased from about 32 crore liters per year to 83 crore liters per annum. Excise duties on ethanol supplied for blending in the next sugar season has been waived, to further incentivize ethanol supplies for the blending program. This would further increase the ex mill price of ethanol and help improve liquidity in the industry facilitating payment of cane price arrears.
The Government had also increased import duty to 40 percent, abolished the Duty Free Import Authorization Scheme, to prevent possible leakages of sugar in the domestic markets. The Government has also reduced the export obligation period from 18 months to 6 months under the Advanced Authorization Scheme. These measures are intended to improve price sentiments.
As a result of the above interventions, the cane price arrears are steadily reducing and presently stand at Rs.15,400 crore. To further liquidation of arrears and increase coverage of the soft loan scheme, the government has decided to extend the date of achieving eligibility under the soft loan scheme from 30.6.2015 to 31.8.2015. Now mills are required to discharge 50 percent of cane dues payable by 31.8.2015 to become eligible for the loan. This will extend benefits to larger number of farmers by enabling more mills to avail the benefits of the scheme. It has also been decided that after clearing cane dues of farmers, subsequent balance, if any, will be credited into the mill accounts. This will benefit about 150 additional sugar mills which had proactively liquidated more than 90 percent of their cane dues payable. This would ensure that mills are incentivized for arranging bridge finances for timely clearance of cane dues to farmers.
Sustained surpluses of production over domestic consumption has created substantial inventories, depressing price sentiments and creating liquidity stress which has resulted in cane dues arrears.
The Central Government has taken several steps to mitigate the situation by infusing liquidity into the sector. The export incentive on raw sugar has been increased from Rs 3200/MT to Rs. 4000/MT. Funds have been allocated to support 14 lac MT (LMT) of raw sugar exports as against 7.5 LMT achieved last year.
Remunerative prices for Ethanol supplied for blending has been fixed. Prices have been increased to Rs. 49 per liter, a substantial increase over previous years. As a result, the supplies of ethanol for blending have increased from about 32 crore liters per year to 83 crore liters per annum. Excise duties on ethanol supplied for blending in the next sugar season has been waived, to further incentivize ethanol supplies for the blending program. This would further increase the ex mill price of ethanol and help improve liquidity in the industry facilitating payment of cane price arrears.
The Government had also increased import duty to 40 percent, abolished the Duty Free Import Authorization Scheme, to prevent possible leakages of sugar in the domestic markets. The Government has also reduced the export obligation period from 18 months to 6 months under the Advanced Authorization Scheme. These measures are intended to improve price sentiments.
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Strengthening of drug regulatory system in the country
The Cabinet Committee on Economic Affairs, chaired by the Prime Minister Shri Narendra Modi, has approved the proposal for strengthening the drug regulatory system both at the Central and the State levels at a total cost of Rs.1750 crore. The strengthening / up-gradation of the system will be spread over a period of three years. Out of the total amount of Rs 1750 crore, an amount of Rs.900 crore will be spent on strengthening central structures and Rs.850 crore will be made available to the State Governments, after signing a Memorandum of Understanding.
The up-gradation will include provision of additional equipment and manpower in existing drug testing laboratories; setting up of new laboratories for testing drugs, medical devices and cosmetics; making mobile drug testing laboratories available; creation of additional manpower for regulatory structures, including for new and emerging areas such as stem cell, regenerative medicine, biologicals and medical devices in addition to drugs. The upgradation will also introduce organisation wide e-Governance and Information Technology enabled/ online services, and setting up a training academy for regulatory and drug testing officials, of both the Central and State Governments.
Assistance will be provided to the States for strengthening their drug regulatory structures. The measure will help enhance quality, safety and efficacy of drugs and other medical products manufactured in the country, and thereby help mitigate the disease burden as also increase export of pharmaceutical products from India. Besides, it will also help trigger growth of the domestic medical devices sector.
India is one of the largest manufacturers of drugs and exports pharmaceutical products to over 200 countries/economies. The implementation of the scheme will facilitate domestic manufacture of quality medical products and help establish a robust industry in the field of medical devices, biologicals and other areas. The common training programmes for regulatory and laboratory staff will also help in evolving uniform practices throughout the country.
The up-gradation will include provision of additional equipment and manpower in existing drug testing laboratories; setting up of new laboratories for testing drugs, medical devices and cosmetics; making mobile drug testing laboratories available; creation of additional manpower for regulatory structures, including for new and emerging areas such as stem cell, regenerative medicine, biologicals and medical devices in addition to drugs. The upgradation will also introduce organisation wide e-Governance and Information Technology enabled/ online services, and setting up a training academy for regulatory and drug testing officials, of both the Central and State Governments.
Assistance will be provided to the States for strengthening their drug regulatory structures. The measure will help enhance quality, safety and efficacy of drugs and other medical products manufactured in the country, and thereby help mitigate the disease burden as also increase export of pharmaceutical products from India. Besides, it will also help trigger growth of the domestic medical devices sector.
India is one of the largest manufacturers of drugs and exports pharmaceutical products to over 200 countries/economies. The implementation of the scheme will facilitate domestic manufacture of quality medical products and help establish a robust industry in the field of medical devices, biologicals and other areas. The common training programmes for regulatory and laboratory staff will also help in evolving uniform practices throughout the country.
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