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LATEST NEWS UPDATES | 50% diesel & seed subsidy to farmers in rain deficit areas

50% diesel & seed subsidy to farmers in rain deficit areas

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published Published on Aug 9, 2014   modified Modified on Aug 9, 2014
-PTI

New Delhi: With an aim to save standing kharif crops from weak monsoon, the Centre on Thursday announced 50 percent diesel subsidy to farmers in places where rainfall deficiency was more than 50 percent as on July 15.

The 50 percent subsidy will also be applicable to places as and when states declare them as drought-hit.

The government also raised the subsidy ceiling to 50 percent on seeds in order to partially compensate the cost of resowing. It also decided to give a special package of Rs 35,000 per hectare for rejuvenation of horticultural crops in areas declared drought-hit.

Intervening during a discussion on natural calamities in the Rajya Sabha, Agriculture Minister Radha Mohan Singh said: "No state has declared drought yet. However, there are reports that in many places rainfall deficit is more. A day before yesterday, a decision was taken to provide diesel subsidy to farmers."

The Centre has issued a directive to states that diesel subsidy be given to farmers to supplement irrigation to protect standing kharif crops in areas where rainfall deficit is more than 50 percent as on July 15, he said.

The 50 percent diesel subsidy, to be borne equally by the Centre and state governments, will be given to a maximum of two hectares per farmer between July 15 and September 30, as per the directive.

Noting that monsoon deficit has come down since June, the minister said that the overall deficit stood at 18 percent as on August 8 compared to 40 percent in June.

"Weather reports do not give clear picture as there are places having 50 percent rain deficit, he said, adding that his ministry has drawn up contingency plans for 520 districts.

During the drought years in 2009 and 2012, the previous UPA government had announced a 50 percent diesel subsidy for farmers in rainfall deficit areas.

In the directive, the Union Agriculture Ministry said that the Centre has decided to provide the diesel subsidy in view of deficit rainfall in various parts of the country.

This scheme will help mitigate the adverse impact of drought and deficit rains on foodgrain production.

At present, seed subsidy is given under the National Food Security Mission.

The Centre has also decided to give an additional allocation of Rs 100 crore for Accelerated Fodder Development Programme in those states where there is possibility of fodder shortages, he said.

Noting that no state has declared drought so far, Singh said the state governments can, however, declare drought and floods if it feels so and make use of the funds available under the State Disaster Response Fund (SDRF).

Under SDRF, 75 percent of funds is provided by the Centre and rest contributed by state governments. "More funds will be given once the expenditure report is submitted to us," he said.

In its second forecast, the Indian Meteorological Department (IMD) had said the southwest monsoon might be below normal, with the country likely to receive 93 percent of the long-period average rainfall.

 


Zee News, 7 August, 2014, http://zeenews.india.com/business/news/economy/50-diesel-and-seed-subsidy-to-farmers-in-rain-deficit-areas_105661.html


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