Centre tweaks scheme, limits subsidy on wheat seed to 1 acre for Punjab farmers

The Centre has tweaked its scheme for giving subsidised wheat seeds to small and marginal farmers of Punjab.

Earlier, subsidised seeds were given to farmers for a maximum of five acres. Now, these 68 per cent small and marginal farmers will get subsidised seeds for just one acre.

Down from 5 acres

• Earlier, subsidised seeds were given to farmers for a maximum of five acres
• The number of beneficiaries getting subsidised wheat seeds will increase
• However, wheat cultivation cost will increase as farmers will have to buy seeds from the market
• The total quantity to be given on subsidy will remain the same as last year

This has raised hopes that the number of beneficiaries getting subsidised wheat seeds in the state will increase as more number of small and marginal farmers (having up to five acres) will get those for use on one acre.

However, the cost of wheat cultivation for these farmers will increase as they will have to buy seeds at higher prices from the open market for the remaining one to four acres. The total quantity of wheat seeds to be given on subsidy will remain the same as last year — two lakh quintals.

Inquiries made by The Tribune reveal that wheat seeds are available in the open market at Rs 3,000- Rs 4,500 per quintal. Till last year, farmers who applied for taking the subsidised seeds, got a maximum of two quintals of seeds each and the seed was available at Rs 1,000 per quintal less than its market rate.

This scheme is run under National Food Security Scheme and Rashtriya Krishi Vikas Yojana with the Centre bearing 60 per cent cost of subsidy and state chipping in the remaining 40 per cent.

This year, 35 lakh hectares are expected to be brought under wheat cultivation. For this, 35 lakh quintals of seeds are required. While the amount of subsidised seeds to be distributed is just two lakh quintals, 33 lakh quintals will be sold in the open market.

Wheat sowing began in the state last week. According to the state Agriculture Department, sowing on 8.7 per cent area is already complete with maximum farmers having bought the seeds from the open market. Generally, the subsidised seeds are made available to farmers from the second week of October. This year, there was no intimation from the Centre about giving this subsidy on wheat seeds.

The state Agriculture Minister, Gurmeet Singh Khudian, had repeatedly been taking up the matter with the Union Agriculture Minister.

Confirming the Centre’s tweaked scheme for giving subsidised wheat seeds, Director Agriculture, Jaswant Singh, said that the Centre has given its formal consent to start the scheme. “Since wheat sowing is already underway, we are asking farmers to buy the seeds, but keep the bills, so that the subsidy for seeds used on one acre can be paid to them later,” he said.