Good News! Farmers will Now Get Machine Subsidy Directly into Accounts

The state government has resolved to reform the in-situ crop residual management plan after being hurt by the agricultural machinery scams in Punjab. Two major adjustments will take effect this crop season - first, unlike in the past, subsidies will now be credited to farmers' bank accounts rather than manufacturers. Second, a special number will be imprinted on each machine.

The embezzlement of Rs 1,178 crore received from the Central government over the course of four years under the scheme was the impulse for changing the scheme.

According to the new regulations established on August 25 by the Department of Agriculture and Farmers' Welfare, every machine will be physically checked before disbursing the subsidy amount, which will only be transferred into the account of the beneficiary—be it a farmer, a society, or a self-help group. Everything will be done online.

The government has also decided to reform the advertising and propaganda component to encourage farmers to stop burning stubble. Targets will now be issued to department field officials.

Notably, under the in-situ crop residue management scheme, the Centre has given farmers a subsidy of Rs 1,178 crore over four years (2018-19 to 2021-22) to encourage the buying and development of machinery banks for crop residual management. But many of these banks only existed on paper, and officials are accused of embezzling the subsidy payments.

Due to the previous Congress government's delay, the scam persisted for the next three years. Former Agriculture Minister Randeep Nabha had claimed that the Central subsidy of Rs 1,178 crore was paid for four years for buying machinery. However, the equipment was never bought, he had claimed.