Question : Aadhaar-enabled Fertilizer Distribution System

(a) whether State Governments have expressed concern over problems in the Aadhaar-enabled Fertilizer Distribution System (AeFDS) particularly during the peak period of farming operations, if so, the details thereof and the reaction of the Government thereto;

(b) whether the new system of fertilizer sales has been introduced recently to prevent diversion of the soil nutrients to the black market by verifying genuine farmers through the biometric system;

(c) if so, the extent to which it has prevented diversion of the soil nutrients to the black market;

(d) whether the State Governments had requested the Union Government for early positioning of the required quantum of fertilizers and if so, the steps taken by the Government in this regard;

(e) whether it is a fact that Kharif season accounts for about 56 per cent of the total food-grains production in an agricultural year;

(f) if so, whether the Government has assessed the quantum of fertilizers required for the Kharif season; and

(g) if so, the details thereof, State-wise?

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANNING AND MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS

(RAO INDERJIT SINGH)

(a): Yes, Madam. Few State Governments have highlighted issues arising during the sale of Fertilizers in the peak season under DBT system. The Department has issued guidelines to all States/UTs to address the challenges arising on account of peak season demand. The Agriculture Departments in all States/Union Territories have been advised to identify retail points where farmers’ visits are likely to peak and to operationalize multiple sale counters with multiple PoS devices so that the large rush at such points can be dealt with in a smooth manner without causing any inconvenience to the farmers and retailers. The copy of the DO letter to State Agriculture Secretaries/Commissioners is attached at Annexure I.

Further, the Department is closely monitoring the smooth implementation of DBT through regular Video Conferencing with State Agriculture Departments on a weekly basis.

(b) & (c): Yes, Madam. The Government has implemented Direct Benefit Transfer (DBT) scheme for fertilizer subsidy across all States/UTs during 2017-18 in a phased manner. Under the fertilizer DBT system, 100% subsidy on various fertilizer grades is released to the fertilizer companies, on the basis of actual sales made by the retailers to the beneficiaries. Sale of all subsidised fertilizers to farmers/buyers is made through Point of Sale (PoS) devices installed at each retailer shop and the beneficiaries are identified through Aadhaar Card, KCC, Voter Identity Card etc.

A study conducted by NITI Aayog through M/s Microsavein of the pilot districts has revealed that diversion of fertilizers has reduced. However, the extent of diversion due to non-agriculture activities has not been studied. Further, Government of India has declared fertilizer as an essential commodity under the Essential Coomodities Act, 1955(ECA) and notified Fertilizer (Control) Order (FCO), 1985 & Fertilizer (Movement Control) Order, 1973 under the EC Act. State Governments have been adequately empowered to ensure selling of fertilizers at MRP besides stopping diversion and black marketing of fertilizers. State Governments are empowered to conduct search, make seizures and take punitive action against any person violating provisions of FCO, 1985 and Essential Commodities Act, 1955. There is no report of shortage of fertilizers from any State Government.

(d): The month-wise demand is assessed and projected by the Department of Agriculture & Co-operation and Farmers Welfare (DAC&FW) in consultation with the State Governments before commencement of each cropping season.

On the basis of Month-wise & State-wise projection given by DAC&FW, Department of Fertilizers allocates fertilizers to States in excess of actual requirement for ensuring adequate availability. Prepositioning before the peak seasons is also encouraged.

(e): As per the information obtained from the Department of Agriculture, Cooperation & Farmers Welfare, the year-wise details of production of Foodgrains during Kharif and Rabi seasons is attached at Annexure II.

(f) & (g): The Government of India has assessed the quantum of fertilizers required for Kharif 2018, the State-wise statement of same is enclosed as Annexure-III.

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