Direct Transfer Benefits

♤ Reduce leakages, which currently hover around 30 to 40 per cent.

♤ Will promote equity as a subsidy package can be designed on a per-hectare basis, with smaller landholders getting a higher per-hectare rate.

♤ Convergence: Directly transferred money to farmers’ accounts linked to Aadhaar for all input subsidies like fertilizers, seeds, farm machinery and credit, will give them freedom to choose the right mix of inputs at market prices.

♤ Address market distortions: Transferring input subsidies to farmers’ accounts will

let the markets for inputs be freed.

♤ Post-harvest losses will also be covered and Time Bound Payment of Losses will prevent delays and further worsening of Farmers' Distress.