In what could be seen as its bid to further win over the farming community, the Andhra Pradesh government on Thursday enhanced the ceiling limit of ex gratia to be given to the family members of farmers, who commit suicide, from Rs 1 lakh to Rs 3.5 lakh.

The state government also enhanced the crop loan waiver limit from Rs 50,000 to Rs 1.50 lakh to mitigate the distress and debt of such families.

Other benefits such as providing admission to children of such families to social welfare schools and hostels, allotment of houses under IAY scheme and economic support under government schemes and pensions will also be extended to the families of those farmers who commit suicide, the State government said.

In a GO issued on late Thursday night, the Revenue Department stated, “The State government enhances the ex gratia and loan settlement ceiling limit to the family members of the deceased farmers. Enhancement of ex gratia from Rs 1 lakh to Rs 3.50 lakh to the family of the deceased farmers towards rehabilitation of the family. The government also enhances loan settlement ceiling limit from Rs 50,000 to Rs 1.50 lakh to the persons (debtors) entitled as one time settlement and to wipe off all the liabilities on the part of deceased families of farmers,” the GO added.

In fact, the then YS Rajasekhara Reddy’s  government had evolved a special package in 2004 to support the distressed family members of farmers who committed suicide.

As per the earlier package, an ex gratia of Rs 1 lakh in case of suicide provisionally arises out of farm income related issues to the family/next to kin of the deceased farmer, as an economic support, besides loan settlement up to a ceiling of Rs 50,000 as one time settlement, to creditors followed by a rehabilitation package.

Recalling this, the AP government stated in the GO, “the government after careful examination, observed that the financial assistance, envisaged in 2004, is not commensurate with the present socio-economic circumstances. The ceiling limit fixed up to Rs 50,000 only, under loan settlement package paid to debtors, as one time settlement, to clear off the liabilities also is a very  small amount, when 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. A study  of the debts  raised by the farmers reveals that 80 per cent of the deceased farmers, raised debts up to Rs 2 lakh to Rs 10 lakh due to repeated crop failures, and successive droughts. Keeping in view the increased distress of the farmers,  a policy decision has been taken  that the present ex gratia of Rs 1 lakh be enhanced to Rs 3.5 lakh and also to enhance the loan settlement amount from Rs 0.50 lakh to Rs 1.50 lakh to mitigate the debt burden and distress of the family members of the deceased farmers,” it said.