Reforming Agricultural Subsidies in India: Towards Efficiency, Equity, and Sustainability

In May 2025,Vice President of India, while addressing the Agri-Industry Conclave in Narsinghpur, Madhya Pradesh, underscored the need for direct transfer of all agricultural subsidies to farmers, saying that such a move would significantly enhance farmer incomes and strengthen rural prosperity.

  • An agricultural or farm subsidy is a financial aid provided by the government to the farmers, agribusiness owners, and agricultural raw material suppliers.

Various Types of Agricultural Subsidies in India

  • Direct Benefit Transfer (DBT): Example – PM KISAN – Direct income support for farmers across India.
  • Input Subsidies
    • Fertilizer Subsidy: Example – Nutrient-Based Subsidy (NBS): Subsidies on non-urea fertilizers such as Di-Ammonium ....
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