The Hindu Business Line : Direct subsidy to farmers gets mixed response

Hyderabad, Aug 14 The Union Government’s decision to give fertiliser subsidy directly to farmers, instead of giving it to the fertiliser companies, has received mixed response.

Welcoming the move, Mr P. Chengal Reddy, Secretary-General of the Confederation of Indian Farmers Association (CIFA), said it would remove imbalances and ensure equitable distribution of subsidies.

On the sidelines of a State-level seminar on ‘Direct transfer of fertiliser subsidy to farmers’, organised by CIFA and IFFCO, he told Business Line that fertiliser subsidies mostly went to farmers in irrigated areas.

He said it would not be difficult to assess the quantum of subsidy to be given to each farmer. “Agriculture universities have already standardised the usage of fertilisers for different crops and in different areas,” he said.

Mr Nagi Reddy of Gudivada (Krishna District) had a different view. “If it is difficult to monitor and control 50-odd (fertiliser) companies, how would it be possible to monitor the usage of fertilisers by lakhs of farmers,” he wondered.

Besides, not all farmers have pattadaar passbooks. “Do we have proper revenue records,” he asked. He, however, suggested that the subsidy amount could be paid to the farmers after all of them receive kisan credit cards.

Mr Ramakrishna Reddy of the Farmers’ Federation of Andhra Pradesh said there was no clarity in the policy. “They don’t have a clue how to go about it and were asking us to suggest a plan,” he said.

The delivery system, too, was not that efficient to ensure foolproof distribution of subsidy.

Mr Chengal Reddy argued that the new regime would force fertiliser companies to be competitive and customise products according to the needs of different agro-climatic zones.

“Reaching out to farmers is not that difficult. About 90 per cent of the population has access to some financial institute — be it post-offices, banks or primary agriculture cooperatives,” he pointed out.

More Stories on : Fertilisers | Andhra Pradesh

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