Answer:

To address the financial problem of farmers government came up with schemes like Interest Subvention Scheme, loan waiver, MSP and subsidies in different sectors (fertilizer, electricity etc.). However, there are certain issues with respect to economy and efficiency of such approaches For example, it is seen that at least 30 to 40 per cent of crop loans under the interest subvention scheme is getting diverted to non- agricultural uses. Under these circumstances the need for moving towards direct transfer of benefits and Universal crop insurance has been felt.