Designing better input support programs: Lessons from zinc subsidies in Andhra Pradesh, India

India has one of the largest agricultural input support programs in the world, delivered in the form of subsidies to farmers, raising concerns about its sustainability. This paper evaluates the performance of one such support, the micronutrient subsidy program in the state of Andhra Pradesh (AP) and...

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Autores principales: Gupta, Shweta, Kishore, Avinash, Alvi, Muzna, Singh, Vartika
Formato: Journal Article
Lenguaje:Inglés
Publicado: Public Library of Science 2020
Materias:
Acceso en línea:https://hdl.handle.net/10568/142866
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author Gupta, Shweta
Kishore, Avinash
Alvi, Muzna
Singh, Vartika
author_browse Alvi, Muzna
Gupta, Shweta
Kishore, Avinash
Singh, Vartika
author_facet Gupta, Shweta
Kishore, Avinash
Alvi, Muzna
Singh, Vartika
author_sort Gupta, Shweta
collection Repository of Agricultural Research Outputs (CGSpace)
description India has one of the largest agricultural input support programs in the world, delivered in the form of subsidies to farmers, raising concerns about its sustainability. This paper evaluates the performance of one such support, the micronutrient subsidy program in the state of Andhra Pradesh (AP) and presents a case for providing this support in the form of direct cash transfers. Under the program, key soil micronutrients- zinc, boron, and gypsum were distributed free of cost to farmers living in micronutrient-deficient areas, with identification and targeting managed entirely by the state. We survey 1621 farmers, 61 agriculture extension officers, and 78 agriculture input dealers to assess the efficacy of the program and to identify bottlenecks preventing effective targeting, with a focus on zinc. We find that use of non-subsidized zinc is high in AP, and awareness of benefits of zinc and physical access to input dealer shops are significant predictors of zinc use. We argue that the free provision of micronutrients may have created demand among farmers, but there is little justification to continue subsidizing such a program at such high rates or resorting to public distribution. We find that micronutrient procurement and distribution has become a burden on extension staff and crowds out the private sector. Our analysis shows that the subsidy can benefit more farmers if it is channeled through the network of private fertilizer dealers. We use administrative data on budgetary outlays and digital soil maps to suggest fiscal redistribution in the form of direct cash transfers that may ensure more effective targeting at a lower cost to the state.
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spelling CGSpace1428662025-01-24T14:21:07Z Designing better input support programs: Lessons from zinc subsidies in Andhra Pradesh, India Gupta, Shweta Kishore, Avinash Alvi, Muzna Singh, Vartika fertilizers surveys cereals crops farmers social protection capacity development trace elements subsidies cash transfers zinc India has one of the largest agricultural input support programs in the world, delivered in the form of subsidies to farmers, raising concerns about its sustainability. This paper evaluates the performance of one such support, the micronutrient subsidy program in the state of Andhra Pradesh (AP) and presents a case for providing this support in the form of direct cash transfers. Under the program, key soil micronutrients- zinc, boron, and gypsum were distributed free of cost to farmers living in micronutrient-deficient areas, with identification and targeting managed entirely by the state. We survey 1621 farmers, 61 agriculture extension officers, and 78 agriculture input dealers to assess the efficacy of the program and to identify bottlenecks preventing effective targeting, with a focus on zinc. We find that use of non-subsidized zinc is high in AP, and awareness of benefits of zinc and physical access to input dealer shops are significant predictors of zinc use. We argue that the free provision of micronutrients may have created demand among farmers, but there is little justification to continue subsidizing such a program at such high rates or resorting to public distribution. We find that micronutrient procurement and distribution has become a burden on extension staff and crowds out the private sector. Our analysis shows that the subsidy can benefit more farmers if it is channeled through the network of private fertilizer dealers. We use administrative data on budgetary outlays and digital soil maps to suggest fiscal redistribution in the form of direct cash transfers that may ensure more effective targeting at a lower cost to the state. 2020-12-01 2024-05-22T12:11:12Z 2024-05-22T12:11:12Z Journal Article https://hdl.handle.net/10568/142866 en Open Access Public Library of Science Gupta, Shweta; Kishore, Avinash; Alvi, Muzna Fatima; and Singh, Vartika. 2020. Designing better input support programs: Lessons from zinc subsidies in Andhra Pradesh, India. PLoS ONE 15(12): e0242161. https://doi.org/10.1371/journal.pone.0242161
spellingShingle fertilizers
surveys
cereals
crops
farmers
social protection
capacity development
trace elements
subsidies
cash transfers
zinc
Gupta, Shweta
Kishore, Avinash
Alvi, Muzna
Singh, Vartika
Designing better input support programs: Lessons from zinc subsidies in Andhra Pradesh, India
title Designing better input support programs: Lessons from zinc subsidies in Andhra Pradesh, India
title_full Designing better input support programs: Lessons from zinc subsidies in Andhra Pradesh, India
title_fullStr Designing better input support programs: Lessons from zinc subsidies in Andhra Pradesh, India
title_full_unstemmed Designing better input support programs: Lessons from zinc subsidies in Andhra Pradesh, India
title_short Designing better input support programs: Lessons from zinc subsidies in Andhra Pradesh, India
title_sort designing better input support programs lessons from zinc subsidies in andhra pradesh india
topic fertilizers
surveys
cereals
crops
farmers
social protection
capacity development
trace elements
subsidies
cash transfers
zinc
url https://hdl.handle.net/10568/142866
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