The government's likely announcement of incentives to provide impetus to rural income will come following feedback given by BJP leaders and MPs, besides other stakeholders, they added. The government may announce packages for farmers relief before the the winter session of Parliament culminates on January 5.
The Modi govt has come under severe criticism for not paying heed to the ever growing agraian crisis and dismal conditon of the farmers in India.
Sources said Prime Minister Narendra Modi held discussions on a wide-ranging farm relief plan with finance minister Arun Jaitley, BJP chief Amit Shah and agriculture minister Radha Mohan Singh.
The timing is significant as it came soon after the BJP was defeated in Madhya Pradesh, Rajasthan and Chhattisgarh in the recent state polls, where rural distress was a key factor.
The Congress, after wresting power in the three states, made good on its campaign promise to waive farm loans almost immediately after taking charge. Congress president Rahul Gandhi said his party and others would "not let PM Modi sleep or rest" until an all-India loan waiver scheme was announced.
Senior Congress leader P Chidambaram took a dig and said the government's plan is to pay farmers the difference between the minimum support price and market price. He said this was already tried by the BJP in Madhya Pradesh but brought no relief to the indebted farmers.
"The prime minister says that Congress governments' loan waivers are only to win elections. So, shall we assume that PM's 'Farmers' Relief Plan' is intended to lose elections?" he tweeted.