Committed to PEOPLE'S RIGHT TO KNOW
Vol. 5 Num 717 Sun. June 04, 2006  
   
Editorial


Editorial
Subsidy question
Time to improve on distribution policy
It fits in with the current pre-budget ambience that some eminent economists have highlighted the anomalies in the disbursement of agriculture subsidies and loans to the farmers. They have also suggested some ways to overcome the problems.

There is no doubt that politicisation of fertiliser marketing and distribution system is a hindrance to ensuring that farmers are fully benefited by the government subsidies. So appointment of fertiliser wholesalers on any political consideration must be dispensed with. The point made by Prof Wahiduddin Mahmud that there should be competition in marketing subsidised agricultural inputs also deserves attention as it would break the monopoly -- an obvious reason behind undue profit making.

The major concern is to evolve a fair system for disbursement of subsidies. The existing modality that assigns the task to the local administration has apparently developed some loopholes. The point will be made clear by the allegation that a deputy commissioner resorted to gross abuse of power when he sent a whole consignment of fertilisers to a businessman outside his district! Similar allegations of gross irregularities have been made by the people concerned in several areas.

Introduction of card for the farmers is a recommendation that has a lot of merit. It can go a long way in ensuring that the subsidies reach the targeted groups and are utilised properly in the end.

Whatever changes the decision makers might contemplate, they can ill afford to repose faith in the officials who are facing all sorts of charges of corruption

Subsidies are a vital component in the overall plan of boosting the highly important sector that agriculture is. Hence the need is to make sure that farmers are not deprived of what is allocated to them due to the presence of self-serving middlemen and government officials.