Good News for Farmers: Govt May Transfer Subsidy for Fertilizers & Seeds Directly to Bank Accounts

The Modi government continues to extend its support to Indian farmers through various initiatives. With several schemes already benefiting crores of farmers, the government is now considering a significant reform—directly transferring subsidies for fertilizers and seeds into farmers’ bank accounts via DBT (Direct Benefit Transfer).

Agricultural Subsidy & PM Kisan Scheme

Under the PM Kisan Samman Nidhi Yojana, farmers receive ₹6,000 annually directly into their accounts. So far, 18 installments have been released under this initiative, aimed at providing financial relief to small and marginal farmers. Union Agriculture Minister Shivraj Singh Chauhan recently hinted at an expansion of this approach, potentially covering subsidies for fertilizers, seeds, and agricultural equipment through DBT.

What Could Change?

• Subsidy for Fertilizer: Currently, the government bears a substantial cost for fertilizer subsidies, amounting to ₹2 lakh crore annually. For example, while a bag of urea costs ₹2,400, farmers only pay ₹265, with the remaining amount being subsidized directly to companies. The government is exploring transferring this subsidy directly to farmers, ensuring targeted benefits.
• Transportation Cost: The Union Minister also mentioned deliberations on providing transportation cost support for farmers’ produce, further reducing the financial burden on agriculture.

Increased Financial Support

There is speculation that the government may double the annual amount under the PM Kisan scheme from ₹6,000 to ₹12,000, starting with the upcoming Union Budget 2025. The 19th installment of the PM Kisan Samman Nidhi Yojana is also expected to be released soon, though an official announcement is still awaited.

Simplifying Farming

The government aims to make farming more manageable for farmers by ensuring direct and hassle-free financial assistance. This reform is expected to not only improve subsidy disbursement efficiency but also increase the financial stability of farmers.

Farmers are encouraged to stay updated with official announcements for further details on these upcoming changes.

Stay tuned for more updates on agriculture and farmer-related schemes!