Government has introduced Diesel Subsidy Scheme to offset the cost of diesel used for pumping water for providing supplementary and protective irrigation to standing crops in drought affected areas.  Government has also enhanced ceiling on subsidies on seeds of cereals, pulses & oilseeds and coarse cereals to partially recompense the farmers for the additional expenditure incurred by them in resowing and / or purchasing drought tolerant variety of seeds.

           Diesel Subsidy Scheme

            Under this scheme, 50% of the cost of diesel for supplementary and protective irrigation will be provided as financial assistance to farmers, limited to 2 ha per farmer, which will be equally shared by Government of India (GOI) and respective State Government / Union Territory.  GOI’s contribution will be capped at Rs. 750 per ha.  The scheme would operate till 30^th September, 2012 in the following areas:

(i)                                                     Districts where rainfall deficit was more than 50% as on 15^th July, 2012, as per India Meteorological Department (IMD) data, or

(ii)                                                   Talukas and districts declared as drought affected areas by the respective State Governments; or

(iii)                                                 Areas with prolonged dry spell with rainfall deficit of 60% or more, for any continuous 15 days period, beginning from 15^th July 2012.

Enhanced Seed Subsidy Scheme

             Under this scheme, ceiling on seeds subsidy is enhanced from the rate of Rs.500 per quintal to Rs.700 per quintal in respect of cereals, from Rs.1200 per quintal to Rs.2000 per quintal in respect of pulses and oilseeds, and from Rs.800 per quintal to Rs.1000 per quintal in respect of coarse cereals.  This enhancement will be available under various ongoing schemes of DAC namely Integrated Scheme of Oilseeds, Pulses, Oilpalm and Maize (ISOPOM), National Food Security Mission (NFSM), Macro Management of Agriculture (MMA), and Rashtriya Krishi Vikas Yojana (RKVY),

Initiative for Nutritional Security through Intensive Millets Programme (INSIMP) & Bringing Green Revolution in Eastern India Programme (BGREI) etc.

This information was given by Shri Sharad Pawar, Minister of Agriculture and Food Processing Industries in written reply to a question in the Rajya Sabha today.

MP:CP: diesel (31.8.2012)