Consider the following statements regarding fertilizer subsidy in India 1 The purchase is made by th...........

Indian Economic System Agriculture

Consider the following statements regarding fertilizer subsidy in India :

1. The purchase is made by the farmer at a price below MRP.

2. Fertiliser subsidy ultimately goes to the fertiliser company, even though it is the farmer that benefits.

3. The companies are paid in bulk without the actual sale to the farmer so as to encourage production.

Which of the statements given above is/are correct?

1 only

2 and 3 only

1 and 2 only

1, 2 and 3

Fertilizer Subsidy in India :

Farm Subsidy as a concept originated during the Green Revolution of the 1970s-80s. In the Fertiliser subsidy the purchase is made by the farmer at a price below MRP that is, below the usual demand-and-supplyrate, or regular production and import cost.
But the subsidy ultimately goes to the fertiliser company, even though it is the farmer that benefits.
Before 2018, companies used to get reimbursed after the material was dispatched and received by the district railhead or designated godown.
But in 2018 DBT (Direct Benefit Transfer) was introduced which would transfer money directly to the retailer’s account.
However, the companies will be paid only after the actual sale to the farmer.
The DBT system is seen after by the Department of Fertilizers’ e-Urvarak DBT portal.