India will cut the subsidies it pays farmers, the country’s central food and agriculture ministry has announced, following the countrys biggest drought in the last 25 years.
The announcement was made on Tuesday, ahead of a meeting of the cabinet, the agriculture ministry said.
The move follows a report by the Central Food Security Commission (CFSC) that projected an additional Rs 6.8 billion subsidy shortfall to farmers in the country by 2020.
In a statement, the ministry said the subsidy reduction will come into effect on November 1.
In March, the government of Prime Minister Narendra Modi reduced the subsidy of about 4,000 million people from an annual rate of about Rs 6 lakh to Rs 6400 a year, as part of an effort to curb inflation.