Nainital, Sep 23 (IANS) Expressing concern over rising incidents of suicides by farmers under financial duress, Prime Minister Manmohan Singh Saturday announced that a relief package was underway for farmers of Andhra Pradesh, Karnataka and Kerala.

Earlier this year, the prime minister had announced a package of Rs.37.50 billion for farmers in six districts of Vidarbha region in Maharashtra - that continues to be plagued by the rising incident of the debt-ridden farmers' suicides.

"A similar package is being prepared for the states of Andhra Pradesh, Karnataka and Kerala, covering 31 districts. The package includes waiver of interest on overdue loans, rescheduling of loans, enhancing credit flow, irrigation, watershed development and horticulture, besides subsidiary income through animal husbandry," he said.

Manmohan Singh was addressing a two-day meet of the chief ministers of the 14 Congress-ruled states in this lake city of the Kumaon Himalayas.

Terming farmers' debt as a major cause of concern, he said the government had formed an expert group to look into the problems of agriculture indebtedness in its totality.

"I am hopeful that we will have its recommendations within the next few months," Manmohan Singh said.

Both the prime minister and Congress president Sonia Gandhi expressed deep anguish over a spate of suicides by farmers, driven to take the extreme step due to financial distress.

Referring to measures taken by the United Progressive Alliance (UPA) government for the benefit of farmers, Gandhi said: "Agriculture credit has been doubled in just about two years; interest rates have been lowered and a package has been announced to revive the short-term cooperative credit structure."

Saying that farming was "no longer a financially rewarding occupation" because of demographic pressures and fragmentation of holdings, she felt that agriculture had become a "high risk livelihood".

Gandhi therefore stressed the need for improving productivity, enhancing profitability and reducing the inherent risks.

"Coverage of institutional credit facility for small and marginal farmers was woefully inadequate," she said. "Consequently, the grip of moneylenders continues as insurance covers barely 10 percent of our farmers."

The prime minister expressed concern over the agriculture growth rate in the country. "It is certainly not comparable with that of the rest of the economy," he said.

"Although we have succeeded in arresting the decline in public investment in this sector, we need much more investment - particularly in irrigation."

Stressing the need to ensure a remunerative price to the farmer for his produce, Manmohan Singh said, "The government has taken a number of measures to support farmers on the price front."

He said the government had announced the minimum support price well in advance this year. "We have provided an increase of Rs.60 per quintal on wheat and Rs.50 on paddy", he said.

Gandhi lambasted the erstwhile National Democratic Alliance (NDA) government for being "insensitive" to the farmer's distress and for setting up a National Commission on Farmers "only two months before the general elections". She lauded Manmohan Singh for reconstituting the same under the chairmanship of renowned scientist M.S. Swaminathan.

The prime minister added that, "the commission has already submitted four reports which includes a draft policy on farmers."