July 25, 2002	Thursday	Jamadi-ul-Awwal 14,1423

NEW DELHI, July 24: India is in the grip of “the worst drought in 12 years”, Indian Agriculture Minister Ajit Singh said on Wednesday as the government announced a calamity relief fund had been set up for drought-hit farmers.

The Press Trust of India news agency said Singh called an emergency meeting in New Delhi of agriculture ministers of 12 drought-hit Indian states.

“The worst and most widespread drought in 12 years has gripped the country. About 320 out of 524 districts in the affected states have been hit by an extraordinary dry spell,” Singh told PTI after the meeting.

The minister said that government had asked sugar mills to immediately pay outstanding dues of 10 billion rupees (208-million-dollars) owed to drought-hit cane growers.

India’s rural credit agency, the National Agricultural Banking and Rural Development Board (NABARD), has also been instructed to “postpone its debt recovery” from drought-hit farmers, added Singh.

“The assistance decided at this meeting is only preliminary and elaborate relief and financial assistance will be finalised by officials later after a thorough assessment of the ground situation,” assured the minister.

“Assistance under the federal Calamity Relief Fund which is normally available to farmers owning at least two hectares of land will be extended to all farmers in the drought-affected areas,” he added.—AFP