Pawar plans to compensate farmers

On a day when the UPA government and the Opposition battled over last months hike in petroleum prices,Agriculture Minister Sharad Pawar ...

On a day when the UPA government and the Opposition battled over last months hike in petroleum prices,Agriculture Minister Sharad Pawar agreed to compensate farmers for the increase in diesel price with a direction to his officials to work out a proposal.

Junior Petroleum Minister Jitin Prasada on Monday requested Pawar to include diesel price changes while computing the minimum support price (MSP) for major crops so that farmers could be compensated for any increase in the price of diesel.

Factoring in the increased price of diesel in the MSP would not only insulate the agriculture sector from any price increase in respect of diesel,it would also strengthen the government’s (petroleum) pricing reforms currently underway, Prasada said in a letter to Pawar.

Story continues below this ad

You may like to refer the matter to Commission for Agricultural Costs and Prices for their consideration or to factor in the price rise for announcing a bonus to the farmers, he suggested.

Pawar concurred with the view but has asked officials to examine whether the compensation should be through a bonus at the time of harvesting or through a diesel subsidy like the one that was given last year to paddy growers for using irrigation pumps on account of erratic monsoon.