The fertilizer department has proposed a major reform to improve subsidy distribution. It asked the agriculture ministry to create a system using land records, cropping patterns, and soil health data. This system will determine subsidies for farmers and aims to roll out Direct Cash Transfers (DCT). Moreover, a parliamentary panel has expressed its support for this initiative.
For years, stakeholders have debated the need for DCT in fertilizer subsidy. The goal is to reduce leakages, prevent excessive use of chemical fertilizers, and save public funds. Currently, the government pays subsidies to fertilizer companies based on actual sales to farmers. These sales are recorded through point-of-sale (PoS) machines, while Aadhaar-based biometric authentication verifies the buyers.
In its latest report, the parliamentary committee highlighted the integration of the PM-KISAN database into this plan. Specifically, the agriculture ministry proposed starting a pilot project in selected districts. This project will use data from the government’s farmer registry.
“The committee appreciates progress in using the PM-KISAN database,” the report stated. Furthermore, it supports creating a system based on land, cropping patterns, and soil health. The committee also urged completing the module by July 2024. Additionally, it stressed the importance of delivering benefits directly to farmers without delays or harassment.
On the other hand, the committee criticized current subsidy and pricing policies. It noted their vulnerability to market disruptions, which often cause shortages of fertilizers like DAP. Therefore, the committee recommended a review of the system to ensure a steady supply and protect farmers’ benefits.
In conclusion, this initiative represents a move toward a more transparent subsidy framework. It aligns with India’s goal to modernize agriculture and provide direct support to farmers.
