Number of workdays 150 days now

In an attempt to provide relief to farmers in drought-affected states, a high level ministerial panel has decided to increase the number of guaranteed work days under the Mahatama Gandhi National Rural Employment Guarantee (MGNREGA) to 150 days and cut interest rates on crop loans to 7 per cent for one year.

The Empowered Group of Ministers (EGoM) on drought headed by Union Agriculture Minister Sharad Pawar on Tuesday also approved slashing of interest rate on rescheduled crop loans of drought-hit farmers to 7 per cent from 12 per cent.

The agriculture ministry had proposed interest subvention on such crop loans for at least five years but the EGoM approved it for one year.

The ministerial panel suggested that the ministry take the proposal to the Cabinet Committee on Economic Affairs for approval, the sources said.

During agrarian crisis like drought, crop loans automatically get converted into term loans for a longer period of three years but at a higher interest rate of 12 per cent.