Fertilizer Subsidy Scheme 2021 | DBT in Urea Subsidy to Farmers

With the onset of the pandemic, the farmer community has largely suffered major losses. Bearing in mind the plight of the farmers, the Centre may finally shift onto the Direct Benefit Transfer mode or DBT for offering farmers subsidy which will be effective from the Fiscal Year 2022.

This Department of fertilisers and the Ministry of Agriculture are working out the details of the specific DBT scheme which may be announced in the Budget for FY22.

Amount in question

Farmers essentially require fertilisers to gain ample produce, but fertilisers are expensive, and good quality fertilisers even more so. According to an estimate by the fertiliser department, on average, a lump sum of ₹5,000 to ₹6,000 is required to be transferred to each family annually in the form of fertiliser subsidy.

This financial support offered to the farmers will be offered in addition to the income support offered of ₹6,000 annually, which is already being given to farmers under the implementation of the Pradhan Mantri Kisan yojana.

The Centre, for the seamless implementation of the scheme, has earmarked a little over ₹70,000 crores. Over 14.6 crore farmers who have an average farm size of 1.08 hectare are the intended beneficiaries of the scheme. 

Objective of the scheme

The main objective of offering this financial subsidy to farmers is simply to offer farmers peace of mind and to discourage rampant or unscientific use of fertilisers and eventually reduce pilferage.

What does this mean for the farmers?

Urea subsidy in the last decade increased from ₹24,337 crores to ₹54,755 crores. While the production cost of gas-based urea is about ₹900 for 45 kg bag of urea, farmers, through the implementation of the scheme, will now get it for ₹242 at a discounted rate of over 70%.

This is a major step for farmers all over the nation who have always found the agricultural sector unhelpful enough to even run their houses properly. According to Nabard, there happens to be a general tendency among farmers to resort to overuse of fertilisers and pesticides as they believe that it will eventually lead to better yields. This leads to an unnecessary rise in input costs for the farmers.

To make sure that farmers resort to better practices, the agricultural sector is now planning to make systemic changes. It will now issue Centre approved Soil Health cards so that the farmers are aware of the right balance of applying micro-nutrients and several other fertilisers and pesticides to the farms.

Summing it up

The Subsidy offered on Urea goes a long way in solving the woes of the farmer. By channelising its efforts towards the primary pillar of the economy, the Centre aims to ensure that our economy has a solid platform to build its bright future on. Over the years, there have been several schemes launched for the overall welfare of farmers, and while the situation may appear a lot better, one can be sure that there still is a lot of work to be done for the betterment of the farmer community.

Similar Yojanas

Schemes launched by the state government

The state governments of India are the next important government bodies right after the central government of the country. The state governments constitute 28 states and 8 union territories

India is a democratic and republic country wherein highest authorities and powers are proffered to the central government. For the state government, real executive powers are given to Chief Minister as he is responsible for heading the Council of Ministers. The state governments of India work toward internal security, such as police department, social welfare, public health betterment and other similar state-related issues. The state government of the country earns its employee income from sales tax services, stamp duty services, and from some parts of GST.

The state governments have launched a variety of schemes so far. Some of the examples are as follows:

In Andhra Pradesh, Chandranna Bima Yojana, National Energy Efficient Agriculture Pumps Program, and Smart Pulse Survey have been launched. In Assam, Mass Rapid Transit System has been recently launched. In Maharashtra, Police Pratisaad Ask services and various schemes for the betterment of farmers have been launched. In Karnataka, PM Santwana Harish Yojana, and Housing scheme for Transgenders have been launched. In Uttar Pradesh, Deen Dayal Upadhyay Gram Jyoti Yojana, Hausla Paushan scheme, and Swadhar Greh yojana have been launched.

The state government of India monitors both rural and urban development. However, it is not feasible for the state government to monitor all rural and urban local government bodies. Thus, based on the provided funding and coverage, rural and urban local entities create development plan whenever required. These government entities work in close association with planning commission and local or regional government sectors and authorities.

Apart from these schemes, the state government also ensures the effective implementation of centrally sponsored schemes in respective states.