In a major step to send the message that his government is farmer-friendly, Chief Minister Chandrababu Naidu hiked the ex-gratia offered to the families of the farmers who commit suicide.
Since 2004, AP Government is implementing the special package of Rs 1 lakh ex-gratia and Rs 50,000 as one-time settlement of crop loan to the families of the deceased farmers.
Now, AP Government enhanced the ex-gratia from Rs 1 lakh to Rs 3.5 lakh and the cap on farm loan waiver has been raised from Rs 50,000 to Rs 1.5 lakhs. Admission of children in social welfare schools, allotment of houses and pensions were the other benefits.
The cost of fertilizers, farm inputs and other investments grew in the past few years. Even the successive crop failures have been a huge burden on the farmers. Hence, AP Government felt the need to enhance the ex-gratia and other benefits offered until now.