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Punjab CM cautions GoI of problems in direct transfer of fertiliser subsidy

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BS Reporter New Delhi/ Chandigarh

Punjab Chief Minister, Parkash Singh Badal, today, asked the Union Ministry of Chemicals & Fertilizers to implement its proposal to transfer fertilizer subsidy directly to the farmers on a pilot basis in order to resolve the issues and difficulties in the way of its implementation.

In a letter to the Union Minister of Chemicals & Fertilizers M K Azhagiri, the Chief Minister reacted to the concept paper prepared by the Government of India (GoI) in this behalf and made certain observations. He pointed out that in the current system the farmers have to pay only the subsidized price of the fertilizer, whereas in proposed system, they would have to first pay the market price and then have the subsidy reimbursed in their bank accounts—which would cause unnecessary financial burden on the farmers—both in terms of the initial higher investment as well as the interest cost for the period it takes to get the subsidy reimbursed.

 

Also, currently, the GoI gives subsidy only to a limited number of companies. In the new proposal, subsidy is proposed to be released to crores of individual farmers at different times in a year. This would involve huge logistical and financial exercise, with correspondingly higher chance of leakage and harassment to the individual beneficiaries. Though technology can provide a solution in the ultimate analysis, yet difficulties during the intervening period could be quite daunting, added Badal.

The Chief Minster also stated that the concept paper does raise the issue of tenant farmers who actually cultivate the land but do not have the revenue record in their names. However, no solution to this problem has been laid out therein. Badal also pointed out that these issues could create serious problems of implementation and lead to hardship for the intended beneficiaries and therefore, urged the GoI to implement this proposal initially on a pilot basis to resolve the issues and difficulties that may come up in its implementation.

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First Published: Jun 21 2011 | 12:08 AM IST

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