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.