Diesel subsidy for rain-deficit States

The Centre announced on Thursday a 50 per cent subsidy on diesel for irrigation in rain-deficient States and raised the ceiling on seed subsidy to 50 per cent. The Centre and the States will equally share the subsidy.

Union Agriculture Minister Radha Mohan Singh said in the Rajya Sabha that the raised seed subsidy ceiling would be applicable in States where the shortage of rainfall was over 50 per cent. At present, the subsidy under the National Food Security Mission was in the range of Rs. 1,500 to Rs. 5,000 a quintal, depending on the variety. He announced a package of Rs. 35,000 a hectare for farmers for rejuvenation of horticultural crops in drought-affected areas.