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An attempt to change the mechanism of transferring subsidies directly to the farmers through their bank accounts.

 February 22, 2016

Uttar Pradesh has successfully implemented DBT (Direct Benefit Transfer) for the seed subsidy to the farmers of Uttar Pradesh. This system ensures consumers paying the full market price for the commodity upfront. The subsidy is then transferred separately into their bank accounts. The primary aim of Samajwadi Party for the Direct Benefit Transfer is to bring transparency and terminate misappropriation of funds for the agriculture sector. The system is providing a maximum subsidy of Rs 2,800 at one bag of seeds of wheat per acre.

Several farmers are the beneficiaries of the direct benefit transfer from the 2015 Kharif Crop season. Since last September, when it was launched, the state government has registered over 36 lakh farmers. The whole process is transparent and the subsidy transfers take place quickly. Uttar Pradesh Government under Akhilesh Yadav’s regime has shown how the DBT model is working well for the farmers. From Uttar Pradesh’s experience, there are takeaways for the other states and the Central government has directed others to have a DBT Model like Uttar Pradesh.

The great growling engine of technology has proven to be favourable in the agricultural perk of Uttar Pradesh. We hope that this model will be extended to other subsidies as well.

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