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Drought situation 'alarming', says Ajit Singh

Union Agriculture Minister Ajit Singh said on Monday that the drought afflicting large parts of the country was "alarming" but it was too early to quantify the damage caused by it.

"The situation has become alarming now...the situation is worsening day-by-day," Singh told a news conference. "But it is too early to say how much crop has been damaged."

The annual June-September monsoon is vital to India's economic health as agriculture kicks in 25 per cent to the country's gross domestic product and employs some 70 per cent of its more than one billion population.

Singh said, however, the picture was looking better in oil-seed growing areas. "Last week there were some rains in Gujarat and in Madhya Pradesh so there is some improvement in oil-seed growing areas."

He added that if it rained in the next five to 10 days in paddy-growing areas, the damage to the crop could be reduced.

"Prolonged moisture stress due to lack of rains may impact on the productivity of paddy," a farm ministry official told reporters.

Assuring maximum support from the central government, he said finances from the Calamity Relief Fund and National Contingency Fund would be sanctioned on priority basis.

"Karnataka and Uttar Pradesh have informed us in writing about the current situation," he said.

While a proposal to grant a moratorium on interest to farmers was in the pipeline, the government would ask all sugar mills to repay pending dues, he said.

Finance Minister Jaswant Singh has been requested to instruct the state-level cooperative banks to extend short-term credits to farmers affected by the drought.

RAINS IN OILSEED AREAS

Officials said sowing of soybean has been nearly completed in the largest growing central Madhya Pradesh state helped by rains in the previous week. Normally soybean in the state is sown on 4.5 million hectares.

"The groundnut crop is also fine because Gujarat has been getting some rainfall in the past," Singh said.

India, the world's largest importer of edible oil, annually buys 4.5 to 5.0 million tonnes mainly from Indonesia, Malaysia, Argentina and Brazil.

The US Agriculture Department's attache in New Delhi has lowered India's rice crop estimates to around 86 million tonnes against the earlier forecast 89 million tonnes.

(With additional inputs from PTI)

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