NEW DELHI: The fertiliser department has asked the agriculture ministry to develop a module for determining the quantum of subsidy using land, cropping pattern and soil health data of farmers for the roll out of Direct Cash Transfer (DCT) to farmers. A parliamentary panel has also backed this.
The need for DCT for fertiliser subsidy has been talked about for the past few years to plug leakage, reduce excessive use of chemical nutrients, and save public exchequer. Currently, the subsidy is transferred to the fertiliser manufacturing companies on the basis of actual sales of soil nutrients to farmers through point of sale (PoS) machines. The buyer’s identity is verified through Aadhaar-based biometric authentication.
In its report tabled in Parliament, the standing committee on chemical and fertiliser ministry mentioned that the fertiliser department has held various meetings with the agriculture ministry to explore the possibility of using the PM-KISAN database. The agriculture ministry suggested that a pilot DCT project can be implemented in selected districts based on the data of farmers’ registry maintained by the government.
“The Committee, therefore, appreciates the steps taken to explore the possibility of using the PM-KISAN database which culminated from a suggestion from the agriculture department to implement a pilot DCT project in selected districts based on their data on farmers’s registration as maintained by them. The fertiliser department has asked the agriculture department to develop a module for entitlement using land, cropping pattern, soil health data of the farmer during July, 2024,” the panel said in its report.
It has recommended government to take steps to ensure that percolation of the benefit is direct to farmers without undue delays and harassment.
The panel has also flagged that the existing pricing and subsidy policies are apparently prone to external shocks and market inefficiencies, often leading to acute shortages of DAP and other essential fertilisers. It has recommended a thorough relook into the existing pricing and subsidy policies so that the subsidy benefits to farmers do not hinder the smooth supply of fertilisers.
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