Assessment of Direct Subsidies Merits

♤ Direct benefit transfer has been successful in many schemes such as PAHAL in LPG and

MGNREGA.

♤ There would be no problem of identification, pilferage and corruption etc. as through JAM trinity or Aadhaar, payments can be made directly to the beneficiaries.

♤ This would increase efficiency, as well as promote regional balance, and crop diversification.

People can decide for themselves which crop they would want to grow, according to the profits and their local requirements. They can also use the amount in value addition, mixed farming and other beneficial activities for their farms/lands.

♤ It is likely to control Inflation and decrease prices of fertiliser, and other agricultural

produce as well.

♤ Behavioural change, as farmers will stop using excessive water or fertiliser in their fields.

♤ Better Nutrition as cereal centric food policy (Calorie based intervention) ignores micro- nutrients requirement of human body.