The Indian government has announced a new scheme to offer 50 per cent subsidy on diesel to farmers, who are affected by less than normal rainfall this monsoon.

The 50 per cent diesel subsidy scheme will help them save the kharif crop through irrigation. The Empowered Group of Ministers (EGoM) on Tuesday also said that it has approved increasing the subsidy on the seeds of alternative crops as part of the government's contingency plans for the agriculture sector in the country. Districts that have received 50 per cent deficient rainfalls will be able to avail this subsidy from the government.

The EGoM cleared a relief package of Rs 1,440 crore for worlds related to watershed development in the states of Karnataka, Maharashtra, Gujarat and Rajasthan. According to estimates, about 56 lakh hectares of farmland might not be cultivated this year due to low rain fall in just these states.

The ministers also permitted to release about Rs 500 crore for providing drinking water in the states. "The EGoM has decided to release Rs 1,440 crore to these states under integrated watershed programme for drought proofing," Agriculture Minister Sharad Pawar said. Mr. Pawar had chaired the meeting of the EGoM.