JOIN USDistress relief fund set up for cocoons
The order will be come into effect from November 1. Sericulture Minister B N Bacche Gowda who held a meeting with the finance department on Tuesday, said that the decision was taken following directions from Chief Minister D V Sadananda Gowda, who is presently in New Delhi.
The government will incur an additional expenditure of Rs 120 to Rs 140 crore annually from the move.
Gowda said that the farmers would be compensated with Rs 10 if the prices went below Rs 150; with Rs 20 if the prices went below Rs 140; and with Rs 30, if the prices dipped below Rs 130. The relief will be provided for the next three months.
The department will ensure that bank accounts are opened in the names of farmers into
which the money will be deposited. Till then, they will be paid through cheques.
There are around 66 markets and around 5,000 silk growing farmers in Karnataka.
Bayya Reddy, State General Secretary and Organising Convenor of the All India Struggle Committee against Duty Free Import of Silk said the move of the government is just an ‘eye wash’.
Reddy said the relief would not help the farmers in any way.
“The government should have consulted the struggle committees and organisations. We have been demanding that the government ensure that the trading should happen at a base price of Rs 200 and more, as the cost of cultivation of one kilo of cocoon is Rs 325,” he said.