EGoM approved 50% Diesel Subsidy to farmers in Drought Hit Areas to save Kahrif Crop

An Empowered Group of Ministers (EGoM) on drought, headed by agriculture minister Sharad Pawar in a meeting on 31 July 2012 announced a  50 per cent diesel subsidy scheme for the farmers to help them save the standing kharif crop through irrigation. The total subsidy burden would be around Rs 1,260 crore and is to be borne equally by the state governments and the farmers. Districts that received 50 per cent deficient rainfalls can avail this facility. The subsidy scheme will be applicable in districts that had more than 50 per cent deficient rains as on 15 July 2012

The EGoM also approved an increase in the subsidy on the seeds of alternative crops under contingency plans.  A relief package of Rs 1440 crore was also cleared towards watershed development-related efforts in Karnataka, Maharashtra, Gujarat and Rajasthan where around 56 lakh hectares of farmland are estimated to go uncultivated. Around Rs 500 crore was approved for meeting drinking water-related challenges in these states. Rs. 453 crore would be given under the National Rural Drinking Water Programme (NRDWP) to Maharashtra, Karnataka, Rajasthan and Haryana.

It was decided in the EGoM meeting that the subsidy amount on seeds of cereals is to be increased from Rs 500 a quintal to Rs 700 per quintal, while that of pulses and oilseeds would be enhanced from Rs 1200 per quintal to Rs 2000 per quintal. The government has prepared contingency plans for 320 districts.

The Agriculture Ministry also decided to waive the duty on import of certain items to increase the availability of feed ingredients for animal husbandry sector needs. Duty- free imports of oilmeal is to be allowed to ensure feed availability to livestock. The withdrawal of customs duty on oilmeal imports is to be applicable for de-oiled soyameal, sunflower, mustard and canola oilmeal. Currently, oilmeal imports attract a duty of 15 per cent.

Drought-like Conditions

The South-West monsoon created a drought-like situation in Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana and Punjab. Of the 36 metrological sub-divisions, 17 have received normal or excess rains, while the remaining 19 had scanty or deficit rainfall.

The rainfall deficit for the country was estimated at at 20 per cent as on 30 July 2012. About 400 of the 630 districts have received scanty or deficient rains in the 2012 monsoon. North-West India has witnessed a deficit of 31 per cent, while Central India witnessed 18 per cent shortfall in rains. South India was affected by a rain deficit of 52 per cent, while the shortfall is 10 per cent in East and North East India.

Kharif crops have been sown in a total of 668.24 lakh hectares (lh) in 2012 as against 724.17 lh in the corresponding period in 2011. Crops such as rice, coarse cereals and pulses have witnessed a major decline in areas at 8.7 lh, 43.48 lh and 16.83 lh, respectively. However, soyabean has seen a rise of 16.9 lh, while sugarcane and cotton acreage has gone up by 5.89 lh and 3.2 lh this year.