Why subsidy is not given directly to farmers?


 The main objective of the Government is to make available fertilizers at reasonable/affordable prices for agricultural purposes including farmers. This objective is achieved through fixation of statutorily backed uniform MRP for urea and indicative MRP for fertilizers covered under the Concession Scheme on sale of decontrolled P&K fertilizers. Administratively, it is not feasible to disburse subsidy directly to farmers, which would require disbursement at the time of each. purchase and the extent thereof would depend upon the quantity and type of product purchased. Also, in such a scenario, Govt. will have to lift the price control, whether statutory or indicative, as for urea and decontrolled P&K fertilizers, respectively. Then, it would be the market forces that would control the selling price for each product, which could be manufacturer specific as well. This could lead to disparity in actual to be borne by farmers in different regions of the country.