The government will consider a proposal tomorrow to provide 50 per cent subsidy on diesel to farmers in places that are facing acute rainfall deficit.
"The Cabinet Committee on Economic Affairs (CCEA) meeting is scheduled for tomorrow. The Agriculture Ministry's proposal on diesel subsidy is on the agenda," sources said.
It is believed that the ministry has proposed 50 per cent diesel subsidy to farmers to supplement irrigation to protect kharif crops in areas which have received poor rainfall in the monsoon season.
The diesel subsidy will be borne equally by the Centre and the state governments.
As per the Met Department, overall southwest monsoon is predicted to be below normal this year. As on August 6, there was six per cent rainfall deficit. Monsoon in the remaining two months of the four-month season, that is in August and September, is expected to be below normal.
Last year, the NDA government had announced 50 per cent diesel subsidy to farmers in places where there was 50 per cent rainfall deficiency. It had also raised the subsidy ceiling to 50 per cent on seeds in order to partially compensate the cost of resowing.
During the drought years in 2009 and 2012, the previous UPA government had announced a 50 per cent diesel subsidy for farmers in rainfall deficit areas.
