Bhubaneswar: The stategovernment is considering a proposal to impose cess on sale of agriculture land in Odisha to create a corpus fund for farmers' welfare.

The proposed fund will be used to provide assistance to farmers in distress, official sources said.

"A proposal to this effect will be placed before the state cabinet and if ratified, budgetary provisions for one time grant for the fund will be made in the next budget," sources in the government said.

The proposal is in line with the state's welfare fund for construction workers. The state government collects one per cent cess from all construction projects for the welfare of workers associated with the industry.

The farm fund move has gathered momentum after the Union budget tried to woo farmers by promising a major revision of minimum support price.

A government official told The Telegraph that a committee of secretaries, headed by chief secretary Aditya Prasad Padhi, has already agreed in principle to set up a fund for the farmers. Once the proposal is approved, the modalities for fund use will be finalised.

"At the time of purchase of agricultural land and conversion of agricultural land for industrial and homestead land purposes, the state government will impose cess and the amount collected will be utilised for welfare of farmers," the official said.

Agriculture minister Pradeep Maharathy told The Telegraph: "We are committed to farmers' cause. Many more schemes will be taken for overall uplift of farmers."

The official said usually sharecroppers# do not have access to institutional funding. Usually, these farmers borrow money from private lenders and crop failure puts pressure on them. In extreme cases, some even commit suicide.