Govt May Implement Direct Benefit Transfer for Agriculture Subsidies, Says Shivraj Singh Chouhan

The government is working on policy changes to make agriculture simpler, according to Union Minister Shivraj Singh Chouhan. He mentioned that future plans might include providing subsidies for fertilisers, seeds, and farming equipment through direct benefit transfer (DBT). This was discussed during an interaction with farmers invited as special guests to the Republic Day parade.

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Chouhan highlighted that the government spends around Rs 2,00,000 crore on fertiliser subsidies. Currently, a sack of urea costs farmers Rs 265, while its actual cost is Rs 2,400. The subsidy is paid to companies. He suggested that if a reliable system is established, subsidies could be directly transferred to farmers' accounts.

Exploring Direct Benefit Transfer for Agricultural Subsidies

The minister also mentioned the PM Kisan Samman Nidhi scheme, which costs about Rs 60,000 crore. If fertiliser subsidies are given through DBT, farmers' bank balances could increase significantly. Chouhan stated that the government will explore applying DBT for other agricultural subsidies like drip irrigation, polyhouses, or tractors.

Efforts are being made to simplify agriculture for farmers. For instance, when soybean prices dropped, a 20% import duty on soybean oil was imposed. Restrictions on Basmati rice exports were also lifted. These measures aim to support farmers in getting better prices for their produce.

Reducing Costs and Enhancing Farmer Benefits

Chouhan noted that agricultural produce is inexpensive at the source but becomes costly by the time it reaches urban areas. The government is considering ways to reduce this price gap for consumers. One idea is for the Centre and states to share transportation expenses.

Additionally, Chouhan informed farmers about various government schemes like the PM Awas Yojna, which is currently being surveyed. These initiatives aim to provide comprehensive support to farmers across different aspects of agriculture and rural development.

The minister also met with Drone Didis who attended the Republic Day Parade as special guests. This interaction highlights the government's ongoing efforts to engage with different stakeholders in agriculture and rural development sectors.