2.2.1. Direct Subsidies

Direct subsidies are money transfers by the government that reach the ultimate beneficiary through a formal predetermined route. In the agriculture and allied sectors, subsidies are given for crop husbandry, agricultural implements, minor irrigation, soil conservation, horticulture, animal husbandry, pisciculture, sericulture and also for loss in agriculture during natural calamities like droughts or floods. The various subsidy schemes in agriculture and allied sectors are routed through the departments of Agriculture, Horticulture, Animal Husbandry and Fisheries.