Five-pronged strategy to help rain deficient farmers

Latest IMD forecast showed the south west monsoon rainfalls to remain deficient at 76% of the long period average in north-west India

In view of deficit rainfall in various parts of the country during south west monsoon and its likely impact on agriculture operations during the on-going kharif season, the government has prepared a five pronged strategy to help farmers in rain deficient areas.

The latest forecast by the Indian Meteorological Department (IMD) showed the south west monsoon rainfalls to remain deficient at 76% of the long period average (LPA) in the north-west India, 89% in central India, 87% over south peninsula and 93% in the north east India with a model error of 8% either side. The average rainfalls, therefore, is estimated at 87% of LPA with a model error of 4% either side.

Rainfall deficiency coupled with a month of delay in commencement, has resulted into lower acreage under kharif crop this season. The Ministry of Agriculture estimated over 5.5% lower sowing area at 87.67 million ha until August 14 this year compared with 92.80 million ha by the same time last year. Barring pulses and cotton, all kharif sowing agri crops have sown fall in acreage this year.

In order to keep farmers’ interest towards agriculture intact, the government has decided to provide diesel subsidy to farmers to enable them for supplementary irrigation through diesel pump sets in the deficit rainfall affected areas to protect the standing crops.

Available to farmers in the areas where the rainfall deficiency stands at more than 50%, the government will provide 50% subsidy on the cost of diesel with a maximum cap of Rs 1050 per ha. Farmers can avail the subsidy for a maximum of two ha of land for irrigation between July 15 and September 30. The scheme will operate on reimbursement basis for which the government has allocated Rs 100 crore.

Second, in order to partially recompense farmers for additional expenditure incurred in re-sowing or purchasing of appropriate varieties of seeds to sow alternate or short duration crops, the government has raised seed subsidy ceiling by 50%. For rice, therefore, subsidy goes up to Rs 7,500 a quintal from the existing Rs 5,000 a quintal.

Similarly, subsidy for pulses has been hiked to Rs 3,750 a quintal now from Rs 2500 a quintal earlier. Since, the deficiency of rainfalls is set to impact rabi season also, the government has extended seed subsidy by 50% on wheat as well to Rs 1,500 a quintal from Rs 1,000 a quintal now.

Third, the government has approved an additional outlay of Rs 700 crore for implementation of interventions for saving perennial horticulture crops during kharif 2014-15. Assistance will be granted to farmers in the form of 85:15 between the Centre and the state governments.

Fourth, an amount of Rs 100 crore has been allocated towards additional fodder development programme under the Rashtriya Krishi Vikas Yojana.

Fifth, the government has waived import duty on de-oiled soya extract, groundnut oil cake, sunflower oil cake, canola oil meal, mustard oil cake, rice bran and palm kernel cake from the existing between 2.5 – 5% to increase availability of feed ingredients.

In a nutshell

* 50% diesel subsidy to farmers on reimbursement basis, Rs 100 crore allocated

* Seed subsidy increased by 50% for re-sowing / sowing of short duration crops

* Rs 700 crore allocated on compensation of horticulture crop failure

* Rs 100 crore for additional fodder development

* Import duty waived on de-oiled soya extract and other feed ingredients