Wednesday, November 30, 2016

Govt to launch direct transfer of fertilizer subsidy

New Delhi: The government has decided to launch direct benefit transfer (DBT) system for fertilizer subsidy payments, said Mansukh L. Mandaviya in the Lok Sabha on Tuesday.

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.