Niti Aayog proposed direct benefit transfer to the Farmers and that's similar to Rythu Bandhu Scheme implemented in Telangana. It came up with the proposal of paying Rs 15,000 per Hectare to farmers annually.
Direct Cash Transfer to Farmers replaces all the existing subsidies for Agriculture including crop insurance, fertiliser, electricity and interest-based loans provided by the Government.
Union Government spends Rs 2 lakh crore per year on Input Subsidies for Agriculture Sector. This amount is anywhere close to Rs 15,000 per hectare. Experts are of the feeling that subsidies provided by the Government aren't reaching most of the deserving Farmers. This could be why Centre is contemplating on Income Transfer to the Farmers.
Offering money directly to the farmers gives them the freedom to choose the crop of their choice instead of relying on those fetching subsidy.
Direct Cash Transfer to Farmers replaces all the existing subsidies for Agriculture including crop insurance, fertiliser, electricity and interest-based loans provided by the Government.
Union Government spends Rs 2 lakh crore per year on Input Subsidies for Agriculture Sector. This amount is anywhere close to Rs 15,000 per hectare. Experts are of the feeling that subsidies provided by the Government aren't reaching most of the deserving Farmers. This could be why Centre is contemplating on Income Transfer to the Farmers.
Offering money directly to the farmers gives them the freedom to choose the crop of their choice instead of relying on those fetching subsidy.