The Hindu Business Line : Direct subsidies

This is with reference to your article “Subsidy Dilemma” (Business Line, January 15). The Finance Minister’s proposal of directly distributing the fertiliser subsidy to the farmers is welcome.

Taking into account the fertility of the soil, the crop he has to cultivate and the area to be fertilised, the individual farmer could decide the right quantum of fertiliser, and the subsidy will help him avoid unnecessary wastage.

Of course it is s Herculean task to identify the target farmers and distribute the cash subsidy. Yet it ought to be done in the interest of small farmers, who do not really gain from supply of subsidised fertilisers.

The main problem in direct distribution of cash subsidy will be that the subsidy may be diverted by the farmers for family expenditure and for celebrations of a social nature.

But this may be a small price to pay for the larger good that can come out of this proposal that will benefit crores of farmers and may be a ray of hope to resurrect moribund agriculture.

N. R. Nagarajan Virudhunagar