"Consider the Effect of Inflation on Agricultural Aid, Including Legislators' Salaries for MLAs and MPs"
Vice Prez Dhankhar Advocates DBT-Style Fertilizer Aid for Indian Farmers
On a recent visit to the Rajmata Vijayaraje Scindia Agriculture University, Vice President Jagdeep Dhankhar suggested that India should adopt a US-style Direct Benefit Transfer (DBT) system for providing subsidies to farmers. He called for inflation-adjusted aid and questioned the current system which he considers ineffective.
Addressing faculty and students, Dhankhar argued that just like the Prime Minister has adjusted legislators' and MPs' salaries for inflation, the same principle should be applied to farmers. He emphasized, "Assistance provided to farmers must also account for inflation."
To highlight the potential impact of the DBT system, Dhankhar pointed out that if the funds spent on fertilizer subsidies in India were transferred directly to farmers, each farmer household could receive around ₹30,000 yearly.
While the US model inspired Dhankhar, he acknowledged that per-farmer subsidies and farming structures in the US are significantly higher compared to India's agricultural sector. He underlined the importance of minimizing leakages and ensuring that subsidies directly benefit the farmers.
Dhankhar highlighted the need for farmers to participate in the value-addition chain to improve their income and standard of living. Stressing the need for local cooperatives and proper post-harvest management, he called for the establishment of warehouses and cold storage chains at the village level to handle agricultural produce effectively.
The Vice President reiterated his belief that a prosperous farmer is key to strengthening the national economy and eliminating obstacles on the path to national development. Renewing the nation's commitment to empowering farmers, he reminded the audience, "The road to a developed India goes through the agricultural fields of our farmers."
Note:The Indian government has implemented several DBT programs, such as the PM-KISAN Scheme which provides ₹6,000 annually to eligible farmers directly. Other Indian states like Odisha have also adopted DBT programs, highlighting the potential for widespread reform in agriculture subsidy distribution. The use of Aadhaar and digital infrastructure is central to India's DBT strategy, reducing the influence of middlemen and ensuring that aid reaches its intended recipients. [2][5]
- Vice President Dhankhar suggests that India should adopt a sensitive inflation-adjusted Direct Benefit Transfer (DBT) policy-and-legislation for providing subsidies to farmers, similar to the US model.
- Dhankhar argues that just like the Prime Minister has adjusted legislators' and MPs' salaries for inflation, the same principle should be applied to farmers' assistance.
- If the funds spent on fertilizer subsidies in India were transferred directly to farmers using a DBT system, each farmer household could potentially receive around ₹30,000 yearly.
- Acknowledging differences, Dhankhar notes that per-farmer subsidies and farming structures in the US are significantly higher compared to India's agricultural sector, emphasizing the importance of minimizing leakages and ensuring that subsidies directly benefit the farmers.
- To empower farmers and improve their standard of living, Dhankhar urges the establishment of local cooperatives, proper post-harvest management, warehouses, and cold storage chains at the village level as part of a comprehensive policy on agriculture.
