The Empowered Group of Ministers (EGoM), to tackle drought and price rise, may wait till the retreat of monsoon before rolling out further sops for the farmers.
According to a source in the EGoM, the only “substantial” decision taken at its last meeting this week was to supply subsidised seeds to the farmers.
Other proposals like extension of diesel and electricity subsidy, free distribution of seed and fertilisers to small and marginal farmers have been deferred for at least a few weeks.
In the meeting, Finance Minister Pranab Mukherjee said since the official retreat period of monsoon began in September, it would be better to wait for a few more days and ascertain the ground reality before finalising package for farmers. Agriculture Minister Sharad Pawar also agreed to the proposal.
The EGoM has decided that the government will concentrate on short-duration crops as part of its contingency plan in the backdrop of drought.
Sharad Pawar will write to agricultural universities asking them to suggest the type of short-duration alternative crops that can be cultivated for the interim period in respective areas.
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The government will also import seeds if its domestic supply falls short of demand. After the meeting, Mukherjee, who heads the EGoM, announced: “We have decided to distribute good quality seeds in time to farmers and have stepped up subsidy to the extent of Rs 288 crore so that farmers get subsidy directly, which will get reflected in the pricing of seeds.”
According to sources present in the EGoM, Pawar and a couple of other ministers mooted the proposal to increase the diesel subsidy for farmers. But Mukherjee put his foot down and argued that the government had already given subsidy to protect the standing crops three weeks ago. Now, when there will be no standing crop, why should more subsidies on diesel be given to the farmers? The United Progressive Alliance (UPA) government has already announced a Rs 1,000-crore subsidy on diesel to paddy growers for irrigation during the kharif season.
Pawar, in his report to the EGoM, said even as production of rice was set to take a beating, the production of pulses might show signs of revival on improved acreage.