Government Mulls Direct Benefit Transfer for Agricultural Subsidies: Minister Shivraj Singh Chouhan
In a bid to streamline agricultural policies, Union Minister Shivraj Singh Chouhan hinted at potential changes that could revolutionize the farming sector. Speaking to a group of farmers, who were honored guests at the Republic Day parade, Chouhan revealed the government’s contemplation of shifting the distribution of subsidies for fertilizers, seeds, and farming equipment to a direct benefit transfer (DBT) model in the future.
Subsidies Worth ₹2,00,000 Crore Up for Grabs
During the interaction, Chouhan shed light on the staggering ₹2,00,000 crore spent annually by the government on fertiliser subsidies alone. He emphasized the disparity between the cost of urea for farmers at ₹265 and the actual cost of ₹2,400, with the subsidy often benefiting the companies more than the intended recipients. “If there is a reliable system, farmers can be given the subsidy directly in their accounts,” Chouhan remarked, underscoring the potential efficiency and transparency of a DBT mechanism.
Exploring New Avenues for Agricultural Support
Furthermore, Chouhan alluded to the possibility of extending the DBT model to other agricultural subsidies, such as those for drip irrigation, polyhouses, or tractors. By contemplating these innovative approaches, the government aims to empower farmers and enhance their financial stability. Additionally, Chouhan mentioned the government’s consideration of shouldering transportation costs for agricultural produce, enabling farmers to access wider markets and sell their goods across the country.
Simplifying Agriculture for the Common Farmer
In his efforts to simplify agricultural practices, Chouhan highlighted various initiatives, including imposing tariffs on imported soybean oil amid declining soybean prices. He also mentioned the removal of restrictions on Basmati rice exports to support farmers. Addressing the disparity between farm gate prices and consumer costs in urban areas, the minister expressed the government’s interest in exploring cost-sharing arrangements between the Centre and states to alleviate the burden on both farmers and consumers.
Informing Farmers and Embracing Innovation
Apart from discussing agricultural subsidies and market dynamics, Chouhan also briefed farmers on other government schemes like the PM Awas Yojna, showcasing a comprehensive approach to rural development. Moreover, Chouhan’s engagement with Drone Didis, who attended the Republic Day Parade as special guests, underscored the government’s commitment to inclusivity and innovation in the agricultural sector.
As the government ponders the shift towards a DBT system for agricultural subsidies, Chouhan’s insights offer a glimpse into the evolving landscape of agricultural policies in India. Stay tuned for more updates on business, politics, and breaking news on Live Mint.
