This Article is From Jul 31, 2012

Ministers' group meet on drought, approves Rs 1,900cr package to states

Ministers' group meet on drought, approves Rs 1,900cr package to states
New Delhi: Concerned over poor monsoon in more than half of the country, the Centre today announced a slew of measures, including a relief package of about Rs 2,000 crore to states facing drought-like situation and 50 per cent diesel subsidy to farmers to save standing kharif crops.

The Empowered Group of Ministers (EGoM) on drought, headed by Agriculture Minister Sharad Pawar, also decided to increase subsidy on seeds of various kharif crops and removed import duty on oilcakes to boost fodder supply for livestock.

Addressing the media after the EGoM meet, Pawar said that out of 627 districts in the country, "about 64 per cent of districts have received deficient and scanty rains".

Asked how bad the situation is compared with drought-year 2009, he said, "Number of districts are more now."

Mr Pawar pointed out that situation is serious in Karnataka, Maharashtra, Gujarat, Rajasthan, Haryana and Punjab. He said the sowing area under kharif crops is lower than last year and "there will be some set back on production."

To mitigate the impact of deficient rains, Mr Pawar said, "EGoM has decided to release Rs 1,440 crore to various states under integrated watershed programme for drought proofing," of which, Rs 501 crore will be provided to Maharashtra, Rs 424 crore to Rajasthan, Rs 320 crore to Gujarat and Rs 195 crore to Karnataka.

The EGoM approved 50 per cent diesel subsidy to farmers to save standing kharif crops in drought affected districts. The subsidy will be shared equally between centre and state.

The subsidy will apply to districts where rain deficit is more than 50 per cent as on July 15, those regions declared as drought-hit by states and also those areas where there is continuous dry spell for 15 days or more.

Besides, the government decided to provide Rs 453 crore to improve drinking water supply in drought-affected areas and another Rs 50 crore to boost fodder production.

To improve drinking water supply in drought-hit areas, Mr Pawar said the EGoM approved Rs 453 crore under National Rural Drinking Water Programme (NRDWP) to four states, of which, Rs 200 crore will be for Maharashtra, Rs 71 crore for Karnataka, Rs 158 crore for Rajasthan and Rs 24 crore for Haryana.

Under the NRDWP, an interim-relief of Rs 38 crore has been approved to three states - Maharashtra (Rs 15 crore), Karnataka (Rs 12 crore) and Rajasthan (Rs 11 crore).

Another Rs 50 crore will be provided to raise fodder output with the provision of buy-back under a central scheme.
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On seed subsidy, Agriculture Secretary Ashish Bahuguna said the amount of subsidy on cereals has been raised to Rs 700 per quintal from Rs 500, and that on pulses and oilseeds, the subsidy has been raised from Rs 1,200 to Rs 2,000.

Pointing out that monsoon deficit stood at 20 per cent during June-July, Mr Pawar said the government will make efforts to protect rabi crops if rains are good in next two months.

Asked whether centre has declared drought, he said: "States have the right to declare drought. I think Karnataka and Maharashtra have taken that decision in some districts."

Mr Pawar said he would visit Karnataka, Gujarat, Maharashtra and Rajasthan along with the Rural Development Minister during August 1-3 to review the situation. After visiting these states, EGoM will meet again to take further steps, he added.

The country had faced severe drought in 2009 resulting in fall in foodgrain production by 16 million tonnes. Foodgrain production stood at a record 257.44 million tonnes last year. This year, kharif production is expected to fall as sowing area is 10 per cent lower so far.

Railway Minister Mukul Roy and Food Minister KV Thomas did not attend the EGoM meeting. Other members who were present include Home Minister P Chidambaram, Power Miniser Sushil Kumar Shinde, Petroleum Minister Jaipal Reddy and Rural Development Minister Jairam Ramesh.



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