India gives subsidy to farmers amid poor monsoon rains

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India gives subsidy to farmers amid poor monsoon rains

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India on Tuesday offered cash and subsidies to tens of millions of farmers affected by poor monsoon.

31 July,2012 09:35 pm

Agriculture Minister Sharad Pawar stopped short of declaring a drought in 306 of Indias 620 districts where the first half of Indias crucial June-September monsoon season has produced deficit rainfalls.It is for state governments to declare drought, Pawar told reporters after a ministerial group announced a series of support measures including diesel subsidies, compensation to farmers for re-sowing and tax waivers.The monsoon rains are dubbed the economic lifeline of India, which is one of the worlds leading producers of rice, sugar, wheat and cotton.There will be some setbacks, but if the final monsoon is alright then we will be able to take some corrective steps, Pawar said.Wheat and rice stocks are quite comfortable but there would be some shortages in cereals, he added.Agriculture contributes about 15 percent to Indias gross domestic product but only 40 percent of farms are irrigated. A drought in 2009 -- the worst in nearly four decades -- resulted in a surge in food prices.