The government has announced various relief measures for drought-hit areas of the country. It includes reducing interest rates on rescheduled crop loans to 7 per cent for this fiscal and increasing the number of guaranteed work days under MGNREGA to 150 days from 100 days. Briefing media about the decisions taken by the empowered group of ministers (EGoM) on drought, Agriculture Minister Sharad Pawar said in New Delhi yesterday, the government expects fall in production of coarse cereals and pulses in Kharif (summer) season although the monsoon deficiency has now come down to 8 per cent.

Four states — Karnataka, Gujarat, Maharashtra and Rajasthan — have declared drought in more than 390 taluks. The Minister said, one of the demands made by most of the states, where drought has been declared, was that the MGNREGA jobs provided for 100 days should be increased by 50 days.

Mr. Pawar said that the government has also decided to make available interest rate at 7 per cent on crop loans, which are rescheduled, instead of 12 per cent in drought-hit areas for this fiscal.

During agrarian crisis, crop loans get converted into term loans for a longer period of three years but at a higher interest rate of 12 per cent. Pawar said the Centre and state would provide interest subvention to the tune of 261 crore rupees under a NABARD scheme to save horticulture crops in drought-hit areas.The EGoM approved 846 crore rupees to Karnataka, Maharashtra, Gujarat and Haryana under the National Rural Drinking Water Programme, NRDWP and relaxed some norms.