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The south-west monsoon arrived over Kerala on Friday, five days late, even as the agriculture ministry prepared plans to subsidise seeds, power and diesel for farmers if rainfall were deficient.
Agriculture Minister Radha Mohan Singh met officials to review the India Meteorological Department (IMD)'s monsoon forecast for June.
Officials said the Centre might offer a subsidy of Rs 10 a litre on diesel this year and pay for half the cost of seeds under various schemes. The Union government might also share the states' burden of free power for irrigation.
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Punjab has already decided to provide cheap power for at least eight hours to farmers for 90 days, for sowing paddy. For this, the state has set aside Rs 2,000 crore.
Officials said around the first week of July, the agriculture department based on a review of actual rainfall will request the Cabinet Committee on Economic Affairs (CCEA) to approve measures such as a diesel subsidy scheme, a rise in ceiling on seed subsidy under various schemes, additional fodder production programme and special intervention for saving horticulture crops.
The Centre had supplied nine million tonnes (mt) of fertilisers to states by May, against a requirement of six mt, to ward off shortage if demand increased.
"National Seed Corporation (NSC) said adequate quantities of drought-resistant, short-duration varieties of seed had been procured along with fodder seeds," Singh said.
An agriculture ministry official said the Centre was advising farmers in the northern states to plant more maize instead of paddy.
The Centre has stocks of tur and chana, procured last year, and will supply these to states if there were a shortage. "We may import pulses to keep prices under check," the agriculture ministry official said.
The Central Water Commission has been directed to ensure water from reservoirs is available for crops in rainfed areas on time. The water resources ministry is preparing contingency plans, so that water for irrigation is available in case of a shortfall in rainfall during the critical period of crop growth.
The Centre will supply extra power to southern states, so that electric power sets can be operated. Inter-regional transfer of power will also be considered in case of any contingency. The rural development department has decided to intensify works under the Mahatma Gandhi National Rural Employment Guarantee Act in drought-hit areas, giving preference to water conservation/harvesting and related projects.
The land resources department has already identified sites for check dams and water harvesting structures to be built and also started desilting old ones.
"This is a good strategy - to get prepared for giving diesel and power subsidy - as drought impacts agriculture and food in three ways. One is on the production front, second, prices and third, livelihood. For ensuring adequate area under cultivation, it is essential to give subsidy on diesel and seeds, so that crop can be sown on time, before the arrival of monsoon," P K Joshi, South Asia director of International Food Policy Research Institute, told Business Standard.
The monsoon had advanced into the south Arabian Sea, Lakshadweep, Kerala, parts of coastal Karnataka, Tamil Nadu and remaining parts of the southeast Bay of Bengal, the met office said on Friday. It added conditions were favourable for a further advance into parts of Karnataka, Tamil Nadu, Rayalseema, coastal Andhra Pradesh and the Northeast in 48 hours.
The IMD had initially predicted a "below normal" monsoon but later downgraded its forecast to "deficient". Last year, the country had received 12 per cent less rain, hitting production of grain, cotton and oilseed. Agriculture and allied sectors grew a mere 0.2 per cent in 2014-15.
