Government announces diesel subsidy for farmers in drought-hit districts

In a move that will bring cheer to farmers hit by drought in a bountiful monsoon season, agriculture minister Sharad Pawar on Friday announced a Rs500 per hectare subsidy for diesel. He announced this at the national conference on `Rabi Camaign.'

The government is expecting bumper production for most key kharif crops, including paddy, pulses, coarse cereals and sugarcane.

Oilseeds are the only crop with lower than normal acreage and expected production.

A good monsoon season along with good kharif and rabi have the effect of easing prices and it is being felt this would impact the persistent double digit food inflation.

The most effective way to keep prices under control was ensuring adequate availability with higher production and productivity so as to meet the requirements of an increasing population with rising incomes, Pawar said.
 
While Rs500 crore has been earmarked for the diesel subsidy to help affected farmers meet rabi sowing expenses, the actual spend is expected to be much lower, he said.

"This year would be one of the best years, which will provide a bumper crop to the country," Pawar told reporters after inaugurating the national conference.