Interim Budget 2019: Govt mulls Rs 70000-cr plan to pay farmers in cash

PM Modi, who is seeking a second term, has to win over discontented farmers before the election

India is considering a plan to transfer cash to farmers to ease their financial burden instead of offering subsidies, people with knowledge of the matter said. 

Prime Minister Narendra Modi's government is planning to combine all farm subsidies, including fertiliser costs, and instead pay farmers cash, the people said, asking not to be identified as the discussions aren't public. The additional cost will be limited to Rs 70,000 crore ($9.8 billion) annually after a full roll-out of the programme, the people said. Finance Minister Arun Jaitley had budgeted Rs 70,100 crore for farm subsidies in the year ending March 31.