Disbursement of compensation for crop damage in Cyclone Fengal has begun in U.T., says Puducherry Chief Minister

Government compensates farmers for Cyclone Fengal damage with ₹30,000 per hectare, loan waivers, and flood mitigation measures in Union Territory.

The government has started disbursement of ₹30,000 per hectare to farmers as compensation for damage to crops in Cyclone Fengal in the Union Territory, Chief Minister N. Rangasamy said here on Friday 

Speaking at a function to distribute loan waiver certificate to farmers, the Chief Minister said the distribution of ₹30,000 has already started in Yanam region of the Union Territory. The compensation would be given to farmers in Karaikal on January 16 and thereafter to the affected farmers in Puducherry region, he said. 

The Chief Minister also announced the government’s decision to adopt flood mitigation measures in rural areas with Central assistance.

Lieutenant Governor K. Kailashnathan and Mr. Rangasamy jointly distributed loan waiver certificates to farmers at Villianur. In his address, the Lt. Governor said farmers were the backbone of the country and one of the main contributors to the Gross Domestic Product. In the Union Territory, 45% of the population were either directly or indirectly dependent on the agriculture sector. The waiver of loans taken from cooperative banks would come as a major relief to the farming community in the region, he said.

Home Minister A. Namassivayam said the loan waiver was possible because of the support extended by the Central government. The NDA government was able to initiate several welfare measures, reopen ration shops and fill departmental vacancies due to the presence of the same alliance government in the Union Territory and the Centre, he added. 

The AINRC-BJP government had announced its decision to waive loans taken by 1,579 small and marginal farmers from cooperative credit institutions during 2016-22. The total loan waiver would cost the government around ₹11.61 crore.

In the current year, the government had disbursed ₹7 crore to Primary Agriculture Cooperative Credit Societies in the Union Territory to write-off the loans. A government source said the remaining sum of ₹4.61 crore would be earmarked in next year’s Budget to compensate the societies for the loss they incurred due to the loan waiver scheme of the government.