Question : SUBSIDY ON FARMING EQUIPMENT

(a) whether the Government provides subsidy to farmers for purchase of modern farming equipments, diesel and fertilizers in the event of drought in the country;

(b) if so, the details thereof;

(c) whether the Government is contemplating to raise the subsidy on farming and irrigation equipments and if so, the details thereof;

(d) whether subsidy on seeds to seed producing companies/cooperative committees has been stopped; and

(e) if so, the details thereof and the corrective steps proposed to be taken by the Government in this regard?

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FOOD PROCESSING INDUSTRIES (SHRI TARIQ ANWAR)

(a) to (c): Due to deficit rainfall situation during Kharif-2012, Government introduced a ‘Diesel Subsidy Scheme’ to offset the cost of diesel used for pumping water for providing supplementary and protective irrigation to standing crops in the drought and deficit rainfall affected areas.

Under this scheme, 50% of the cost of diesel for supplementary and protective irrigation was provided as financial assistance to farmers, limited to 2 ha per farmer, to be equally shared by Govt. of India (GOI) and respective State Government/ Union Territory. GOI’s contribution was capped at Rs.750 per ha. This scheme was operational till 30th September 2012 in the following areas:

# Districts where rainfall deficit was more than 50% as on 15th July, 2012, as per India Meteorological Department (IMD) data, or

# Talukas and districts declared as drought affected areas by the respective State Governments; or

# Areas with prolonged dry spell with rainfall deficit of 60% or more, for any continuous 15 days period, beginning from 15th July 2012.

Subsidy on urea and 23 grades of Phosphatic and Potassic (P&K) fertilizers are provided to the farmers. Government however, is not implementing any specific scheme to subsidize purchase of modern farming equipment in the event drought, and is not contemplating as such to raise subsidy thereon.

(d) & (e): Government is implementing a Central Sector Scheme titled “Development and Strengthening of Infrastructure Facilities for Production and Distribution of Quality Seeds” since 2005-06 with the objective of developing and strengthening of existing infrastructure for production and distribution of certified / quality seeds to farmers. However, no subsidy is being given to seed producing companies/ Cooperatives.