Modi Government’s Two Recent Initiatives to Double Farmer’s Income

According to a press release from the Press Information Bureau (PIB), the Indian government is making fertilisers such as urea and 22 grades of Phosphatic & Potassic (P&K) fertilisers such as Di-ammonium Phosphate (DAP), Muriate of Potash (MOP), and Single Superphosphate (SSP) available to farmers at a subsidised rate via importers and fertiliser manufacturing firms. With effect from April 1, 2010, the NBS Scheme has regulated the subsidy on P&K fertilisers.

The Government has taken two recent initiatives to enhance farmer income:

First is regarding subsidized fertilisers being made available to farmers. The Indian government is ensuring that P&K fertilisers are available to farmers at subsidised or reasonable prices as part of a farmer-friendly initiative. Fertilizer companies are given subsidies based on nutrient-based subsidy rates, allowing them to supply fertilisers to farmers at reasonable prices.

Prices of raw materials for DAP and other P&K fertilisers have risen dramatically on a global scale in recent months. As a result, the prices of finished DAP and other fertilisers have risen dramatically. However, until last month, companies in India did not resort to raising the price of DAP.

"The Indian government is fully aware of the situation, which is being closely monitored at the highest levels. The government is well aware of farmers' concerns and is already taking measures to address the situation in order to protect the farming community from the impact of the price hike in P&K fertilisers that includes DAP", according to the press release.

"As a first move, the government has directed all fertiliser companies to ensure that these fertilisers are available in adequate quantities in the market for farmers. The government monitors the availability of fertilisers in the country on a regular basis ", it continued.

"In terms of DAP pricing, the government has already instructed all fertiliser companies to sell their old stocks of DAP and other fertilisers at the old prices only. In addition, the Indian government is considering subsidy rates to offset the increase in international prices of raw materials for P&K Fertilizers and DAP, in order to help farmers' causes and reduce their financial burden ", the press release said.

As a first step toward increasing farmer income, the government is ensuring that farmers have access to fertilisers at low or no cost.

Second is regarding the eighth installment of the PM-KISAN scheme, worth over Rs. 19000 crore, has been issued.

PM Modi has recently launched the eighth instalment under the PM KISAN or Pradhan Mantri Kisan Samman Nidhi scheme on May 14, 2021. Over Rs. 19000 crore was deposited in the bank accounts of over 9.5 crore farmer families as part of the dole-out.

The PM-KISAN scheme is a sector-specific scheme run by the Centre with the aim of providing financial assistance to the country's agriculture community in order for them to meet their financial needs for agriculture and allied services, as well as household needs. In addition, qualifying farmer families are eligible for a yearly payment of Rs. 6000, which is paid in three equal instalments of Rs. 2000 each.

As a result, in the aftermath of the COVID pandemic, the government is doing all it can to protect farmers' interests.