Govt considering feasibility of providing direct subsidy to farmers

The government is mulling the probability of giving direct subsidy in respect of kerosene, LPG & fertilizers to farmers. A Task force in this regards was formed under the chairmanship of Nandan Nilekani, Unique Identification Authority of India (UIDAI) to examine and recommend a implemental solution for transfer of subsidy directly to the intended beneficiaries.

The task force has submitted its interim report with respect to fertilizers and has recommended three stage approach with respect to payment of subsidy directly to farmers. The Phase-I is to capture the information on availability of fertilizers at the farm gate level, wherein the availability at the retailer level will be captured.

In Phase-II, which will be implemented after the Phase-I stabilizes; the subsidy is expected to be transferred at the last point sale. Under Phase III, the subsidy is expected to be transferred directly to the intended beneficiary based on AADHAR Numbers.

Further by way of a heavily subsidized MRP, the fertilizer subsidy is transferred to the farmer including the marginal and small ones. As on date, a farmer pays only approximately 50% of the cost of fertilizer as MRP.