Friday 25 September 2020

Fertilizer subsidy of 5 thousand rupees to farmers

 The government is considering a change in the fertilizer subsidy process of farmers. The Commission for Agricultural Costs and Prices has recommended giving a subsidy of 5 thousand rupees

annually while recommending subsidy directly to farmers.

Agricultural cost and price commission submitted a report of recommendations

According to the commission, farmers should be paid in two installments of Rs 2,500. The first installment should be made before the commencement of the Kharif crop and the second payment at the beginning of Rabi, so that the farmers do not lack money in sowing. If the government approves these recommendations, then the subsidy process to companies will be abolished. Farmers currently buy urea, potash, and phosphate at a subsidy to the market.

The government pays subsidy after selling fertilizer to these companies. Under the new process, the farmers will get the fertilizer at the market price and the subsidy will come directly to their account. The Modi government currently pays 6 thousand rupees to 9 crore farmers annually under the Kisan Samman Nidhi. Commission has recommended a fertilizer subsidy of Rs 4,585 per hectare.

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