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Fertilizer subsidy is the linchpin of India’s support system for its farmers, who in turn help provide food security for the country’s 1.3 billion people. Thanks to its growing technological capabilities, India is primed to reform its fertilizer subsidy program, making it more efficient and economical.
India’s National Food Security Act (NSFA), which came into effect in 2013, declared that the poor in urban and rural areas of the country had a constitutional right to food. The NFSA provides monthly food subsidies to roughly 800 million poor individuals in all 36 Indian states and union territories in the country. The subsidy is in the form of 5 kilograms of rice, wheat, or a combination of both.
The Government of India spends about USD 71 billion every year on various G2P welfare programmes on food, fertiliser, fuel (liquefied petroleum gas (LPG) and kerosene), health, pensions, rural employment etc. Direct Benefit Transfer (DBT) in G2P programmes is a major reform initiative launched by the Government of India on 1st January, 2013.
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