Direct Cash Transfers in fertilizer: Modalities for cash delivery

by Anurodh Giri and Ritesh Rautela
Oct 15, 2020
1 min

This publication discusses two alternative models to Direct Cash Transfer (DCT) of fertilizer subsidy in India. It further looks at the potential issues that beneficiary farmers could face under each of the proposed models.

The Government of India currently provides subsidies to fertilizer manufacturers instead of beneficiary farmers through Direct Benefit Transfer in fertilizer. The government has planned for the Direct Cash Transfer (DCT) of fertilizer subsidy into the bank accounts of farmers. This note discusses two alternative models for DCT of fertilizer subsidy to maximize the benefits for farmers and reduce the fiscal burden of the subsidy. It further explores potential issues that beneficiary farmers could face under each model.