DBT agriculture: How to access benefits and schemes

22 Jan, 2025

Using direct financial support for several agricultural projects, DBT Agriculture empowers farmers. Through a simplified DBT agriculture registration process, farmers can enjoy advantages, including better modern farming tools, seed quality, and financial help.

It also guarantees openness and efficiency in India's agricultural industry. So, it's time for farmers to avail the benefits of the DBT agriculture scheme. Let's uncover its benefits, process, issues regarding DBT Agriculture, and more. 

About DBT Agriculture - Overview

Agriculture plays a major role in deciding the economic condition of the country, mainly farmers. To make Indian agriculture more sustainable and advanced, the government issues various schemes, benefits, and policies to improve the economic condition of underdeveloped farmers. To ensure the development of farmers, the government has introduced a different scheme known as direct benefit transfer (DBT).

In this scheme, various sub-schemes are involved, through which the beneficiary gets the amount transferred directly to their bank account. The scheme is introduced by both the state and the central government for the welfare of Indian farmers. The policies work in favour of the farmers, helping them get the best and most efficient farming advantages that can reduce their work burden and multiply the possibility of better farming for them.

The Central government has brought this privilege of giving valuable benefits to the farmers and their families to reduce their work stress and motivate them to excel in their work easily. Moreover, in the process of transferring subsidies, farmers face many difficulties and barriers which is one of the drawbacks of the process.

Thus, the government has tried to take measures to overcome the issue by directly transferring the subsidies to the beneficiary's bank account. The farmers need extra perks and benefits the government offers to support better productivity and efficiency in the farming industry. Let's move into more detail about the DBT agriculture scheme in India.

What is the DBT Agriculture Scheme?

DBT agriculture scheme in India aims to provide aid for a simpler/faster flow of information and funds to the beneficiaries, eliminating fraud in the delivery system. The DBT scheme was introduced as an initiative on 1st January 2013  by the government of India to reform the government delivery system.

Central Plan Scheme Monitoring System (CPSMS), earlier known as the Public Financial Management System (PFMS) of the Office of Controller General of Accounts, was chosen as the common platform for routing the Direct Benefit Transfer to the beneficiaries.

Different components of the DBT agriculture scheme

There are various components on which the DBT works. Primary components in the implementation of DBT agricultural schemes include:

• the Beneficiary Account Validation System
• a robust payment and reconciliation platform integrated with the Reserve Bank of India (RBI)
• National Payments Corporation of India (NPCI)
• Public & Private Sector Banks
• RRBs and Co-operative Banks

There are 310 Schemes from 53 Ministries under the DBT agriculture scheme. Some important schemes include

• Pradhan Mantri Fasal Bima Yojana
• National Food Security Mission
• Pradhan Mantri Krishi Sinchai Yojana
• PM KISAN
• Atal Pension Yojana
• National AYUSH Mission, etc

In the DBT scheme, an Aadhaar is not mandatory as it gives a unique identity and is useful in targeting the intended beneficiaries. Aadhaar is preferred, and beneficiaries are encouraged to have Aadhaar in the process.

How does the DBT Agriculture Scheme work?

The goal behind the Direct Benefit Transfer program of the Indian government is to bring transparency and terminate pilferage or leakage from the distribution of funds sponsored by the Central Government of India. In the DBT scheme, benefits or subsidies will be directly transferred to citizens' bank accounts living below the poverty line.

In this process, the Central Plan Scheme Monitoring System (CPSMS), which is now known as the Public Financial Management System (PFMS), is implemented by the Office of Controller General of Accounts (Ministry of Finance). It is the common platform for routing DBT ( Direct benefit transfer).

CPSMS/PFMS works by preparing the list of beneficiaries, digitally signing them, and processing payments in the beneficiary's bank accounts using the Aadhaar Payment Bridge of NPCI. Further, it is enabled by the Jan Dhan, Aadhaar, and Mobile (known as JAM) trio set up by the government. Additionally, it uses core banking and electronic funds transfer services like National Electronic Funds Transfer (NEFT).

What are the requirements for Enrolling in the DBT Agriculture Scheme?

Farmers must provide little information and complete a few procedures to get the utmost benefit from the government-initiated DBT agriculture scheme. Enrolment in the DBT scheme requires that the intended beneficiary has a bank account and an Aadhaar. After that, the person has to link his bank account to the Aadhar and finally link it with the scheme to be available to them. The next process involves submitting all the required documents. 

What are the Types of Benefit Transfers in the DBT Agriculture Scheme?

There are two types of benefit transfers included in the scheme, which are cash transfers and in-kind incentives. These are listed below- 

• Cash Transfer - The subsidy prices for the farmers are given directly in the form of cash. The individual beneficiaries get cash subsidies from the government; the numerous ways through which farmers get subsidy allowance can be straight in hand or from the state treasury to the beneficiary's account or from the government-appointed implementation body, or the recipient collects it directly from the federal or state government.
• In-kind incentives - This is another way of providing benefits to the farmers. The government provides subsidies to the beneficiaries through recognised central agencies. Sometimes, the government bears the expense of purchasing a product that can be publicly distributed and supplying it to the recipient that they have selected. The beneficiaries then get these products at a small or very less price.
• Other ways of transferring subsidies are in the form of grants and benefits and are given to non-governmental organisations. These payments are given to preserve farmer's rights and freeze up for them with no chances of fraud or deception.

What are the Advantages of the DBT agriculture scheme?

1. Expanded the Coverage of Services: This approach endeavoured to open bank accounts for all households, expanded and encouraged the use of Aadhaar by all and scaled up the coverage of banking and telecom services.
2. Instant and Easy Money Transfer: It helped by forming the Aadhaar Payment Bridge to enable instant money transfers from the government to citizens' or beneficiary's bank accounts. This approach also allowed all rural and urban people to be uniquely linked under different government schemes for receiving subsidies directly into their bank accounts and help them transfer money easily.
3. Financial Assistance: In rural areas, the DBT scheme has enabled the Indian government to provide financial assistance transparently to farmers with lower transaction costs, whether for fertilisers or other schemes.

How to apply for the DBT Agriculture scheme?

• Apply for DBT with a valid Aadhar card in hand. The Aadhar card number is the most important thing for the agricultural department. If the Aadhar card number is unavailable, one can easily go to the nearest Aadhar card centre for enrollment. Farmers can get information about their nearest Aadhar centre from the governmental portal.
• A voter card is the next big thing that is required for registration of DBT agriculture. It is not easy to register and get subsidies for the schemes and policies without a voter card. The importance of user identification is to the extent that DBT benefits are not easy to avail without it.
• Bank Details - The next big thing without which subsidy wouldn't be transacted to the farmers is the bank account details of farmers. There should be accuracy in registering the bank name, account number and IFSc code or any other detail required. The hindrance of transacting the subsidy will be eliminated.   

There are many more such agricultural schemes and policies that you might note by visiting the DBT portal directly. TractorGyan also provides all the requisite information and knowledge about the DBT agriculture schemes and processes. Keep visiting Tractor Gyan to know everything in detail about DBT agriculture. 

Limitations of the DBT Scheme That Need to Be Addressed

• Many farmers, especially rural ones, struggle with DBT registration and transactions due to low digital literacy and connectivity.
• Despite advances, bureaucratic hurdles and verification processes delay grant delivery.
• Due to poor documentation and misinformation, DBT subsidies are denied to many marginal farmers and landless labourers.
• Financial misbehaviour and fraudulent registrations demonstrate the need for improved monitoring and verification.
• Many farmers lack knowledge of the programs provided under DBT agriculture, restricting their ability to benefit from government policies.

DBT agriculture in India: A Progressive Approach for Farmers.

DBT agriculture has facilitated better ways for farmers to exercise their right to the subsidy. The amount they receive and the funds they get through the transaction are easily processed and accounted for under government laws, which minimises the risk of getting any hindrance. Still, there are a few limitations that need to be addressed. 

To preserve farmers' rights and power, the Central and State governments have figured out the best way to provide a farmer with a deserving subsidy. DBT in agriculture is the modest and the most lucrative form of producing the best subsidy allowance for the farmers. TractorGyan is always there for all Indian farmers to avail the benefits of these government schemes. 

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