Under the proposed
system, 100 % subsidy on various fertilizer grades shall be released to the
manufacturers and importers on the basis of actual sales made by the retailer
to the beneficiaries, said the Minister of State (MoS) in the Ministry of
Chemicals.
Initially, the
modified subsidy procedure under DBT system will be introduced on pilot basis
in 16 select districts and after its due stabilization, the new payment system
would be rolled out in all states in the second phase. The proposed DBT will
address the issues relating to diversion and smuggling of urea.
The proposed DBT for
release of fertilizer subsidy to fertilizer companies has no direct link with
landholding of the farmers. The fertilizers will be available to all on ‘no
denial’ basis.
