Modi says government absorbed bulk of diesel price rise to shield farmers

Prime Minister Narendra Modi on Tuesday stated that despite volatile international crude oil markets, his government deliberately restricted the burden on India's farming community by capping recent diesel price increases.

Modi said that given global crude price movements, diesel rates could have risen by ₹50 per litre. However, the government increased prices by only ₹7 per litre, effectively absorbing the remaining ₹43 per litre difference through budgetary measures, he claimed.

The Prime Minister's comments reflected the government's balancing act between managing fuel inflation and protecting the agricultural sector, which is heavily dependent on diesel for irrigation, harvesting, and transportation. Diesel price movements directly impact farm input costs and overall production expenses.

Modi's statement underscored the government's policy approach of using fiscal resources to cushion the impact of global commodity price volatility on domestic agriculture. India's farming sector, which employs millions and contributes significantly to the national economy, remains sensitive to fuel price fluctuations.