After reports of damages to rabi crop because of recent frost in the state, the Madhya Pradesh government has decided to suspend recovery of agricultural loan from farmers for the time being besides providing financial relief to farmers.

According to Madhya Pradesh agriculture minister Ramkrishna Kusmaria, besides the loan recovery suspension, the state government is working out proposal to reduce agricultural loans rate to as low as 3% for helping out farmers whose crops have fully or partially damaged due to severe frost like condition prevailed across central Indian state.

Kusmaria, during his meeting with Union agriculture minister Sharad Pawar on Wednesday, had asked for sending a team from the Centre to assess the damage to crop because of frost. The Centre has announced a special package of Rs 200 crore for assistant to 70 lakh farmers of the Madhya Pradesh. Besides, second instalment of Rs 224 crore under Natural Calamity Fund had been released for Madhya Pradesh.

?Large portions of wheat, mustard and chana cultivation in the state have adversely impacted due to recent frost. Thus we are carrying out series of programme to give relief to farmers which include suspension of loan recovery,? Kusmaria told FE.

The Madhya Pradesh chief minister Shivraj Singh Chouhan had recently stated that the state had never experienced such severity of frost that played havoc on major damage to crops this season. He had said the state government has allocated a sum of Rs 600 crore to mitigate the problems of close to 65 lakh farmers in the state and also said that funds would be increased for cash relief.

Chouhan also said that steps would be taken to cover all crops under the national agriculture insurance scheme and will meet the Prime Minister and concerning Union Ministers to demand the release of special package for the frost-affected farmers.

Meanwhile, addressing the Farmtech 2011 organised by the Madhya Pradesh government and PHD Chamber on Thursday, Kusmaria said, ?There is need to restore the soil health as excessive use of fertiliser over the years have lead to degradation leading decrease in the yield,?.

More than 10,000 farmers across the Madhya Pradesh on Thursday participated in the Farmtech being held here during February 3-8, 2011.