NEW DELHI: The food ministry on Friday said the government will release nearly Rs 3 lakh crore additional food subsidy in the remaining two months of the current financial year as it looks to clear all previous backlogs. It also said states such as Punjab and Haryana have been asked to use electronic modes to pay the assured crop price (MSP) to farmers and that the new system would not end the current practice of crop procurement through mandis and middle-men or arhtiyas.
“E-mode of payment ensures that all participants including farmers, arthiyas, mandis etc receive their payments directly online in the chain in order to ensure transparency, tracking the trail of payments made and benefits for all. This is not a replacement of the current APMC system. It only strengthens transparency and elimination of leakages. E-mode of MSP payment is already in force across India,” the ministry said .
It said the digital mode of financial benefit transfers or payments by government agencies to beneficiaries has been a highly successful and appreciated tool of transparency which has been instrumental in eliminating leakages in delivery of benefits.