Subsidy on diesel, seeds to be hiked to help farmers

The Central government on Tuesday approved Rs 1,931 crore financial package to five drought-affected states, including Rs 224 crore for Karnataka. The package will be used primarily to ensure supply of drinking water in rain deficient states and improve watershed management for drought-proofing. In addition, subsidy on diesel and seeds will be increased to help farmers tackle the crisis and save standing crops. Import duty on oil mill cake has been waived to improve the feed scenario.

Experts have warned that vital corn-producing and soybean-producing states in the U.S. are in the throes of intensifying drought conditions — a revelation that has resurrected concerns of sparking another global food price shock. In 2008, it was a spike in food grain prices in global markets that led to widespread rioting and political instability across nations.

In a report released last week, the U.S. Drought Monitor agency (USDM) noted that “The widest drought to grip the U.S. in decades is getting worse with no signs of abating

The state chief minister Arjun Munda announced a relief package to the vextent of Rs 410 crore for the relief to 39 lakh farmers in the state owing to adverse impact of lowest rainfall this year in comparison with last few years affecting sevvere drought like condition throughout 24 districts of the state.

Of the sanctioned amount of Rs 410 crore, Rs 150 crore will be provided to the farmers to purchase diesel for irrigation purpose and Rs 240 crore will be utilizes by 39 lakh farmers as interest free loan through banks.

The spectre of drought looms large over major parts of northern and western India and Karnataka following a poor monsoon threatening kharif (summer sown) crop output and leaving farmers and livestock in distress.

Shortage of drinking water and an adverse impact on the prices of fruits, vegetables, pulses, sugar has been felt in several areas. Livestock has been hit due to fodder shortage.

In the wake of imminent drought in Maharashtra, Karnataka, Gujarat and Rajasthan, an Empowered Group of Ministers (EGoM) would hold discussions with the Chief Ministers of these States in the coming week on evolving immediate relief measures, Union Agriculture Minister Sharad Pawar said at a public function here on Sunday.

Mr. Pawar called for readiness on the part of all parties to face drought. He called it a ‘grave situation.’ “The availability of water and fodder have never been so low. It is necessary to ensure that drinking water to last till July 2013 is stored.”