NITI Aayog proposes direct benefit transfer to farmers: Report

Some experts, the report adds, are of the opinion that these subsidies are not equitable and are not equally disbursed.

The newspaper quoted a senior government official as saying that the idea is to move to a mechanism that prevents misuse of subsidised urea and power and gives economic freedom to farmers.

“The government is of the view that this is the only way forward to supplement the farm income,” the official told the newspaper.

“Besides, giving money directly to farmers would give them freedom to choose the best crop and not go only for subsidised items, be it fertiliser or free power,” the official added.

In 2015, the government had said it wanted to double farmer income by 2022.

On January 17, Union Minister for Agriculture Radha Mohan Singh indicated announcement of major measures in the coming weeks, to address farm distress across the country.

The move comes ahead of the Lok Sabha elections and imposition of the Model Code of Conduct when the poll dates are announced by the Election Commission of India (EC).

According to a PTI report, the agriculture ministry has prepared a cabinet note on "addressing income deficit syndrome of small and marginal farmers" proposing various steps, including a financial package and interest waiver for timely crop loan repayers.

A draft note has been finalised after several meetings with officials of Prime Minister's Office, the NITI Aayog, and agriculture and finance ministries.