Question : Aadhaar Enabled Fertilizer Distribution System

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

(a) whether the Government had announced Aadhaar enabled Fertilizer Distribution System in the year 2016 and if so, the details thereof;

(b) the number of districts which have been linked with this system, so far;

(c) whether Aadhaar enabled Fertilizer Distribution System has made manufacturers, wholesellers and retailers accountable and if so, the details thereof;

(d) whether most of the retailers have stopped selling of fertilizers under the Aadhaar enabled Fertilizer Distribution in various States and if so, the details thereof along with the reasons therefor; and

(e) the extent to which this new system has checked utilization of fertilizers for non-agricultural activities along with the steps taken/being taken by the retailers to fulfil the demands of fertilizers during peak demand season?

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

(RAO INDERJIT SINGH)

(a) & (b): Yes, Madam. During the year 2016-17, Direct Benefit Transfer (DBT) system of fertilizer subsidy was introduced on pilot basis in 19 districts. The details are at Annexure I. Further, DBT system was rolled out in a phase wise manner across all States and Union Territories from September 2017 to March 2018. The details are at Annexure II.

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.

(c): Under Aadhaar enabled Fertilizers Distribution System (AeFDS), it is mandatory for the retailers to sell subsidized fertilizers through PoS devices. The Fertilizer sales are monitored online through web based, Integrated Fertilizer Management System (iFMS). A study conducted by NITI Aayog through M/s Microsave revealed that AeFDS has increased accountability of stakeholders including fertilizer manufacturers, wholesalers and retailers.

(d): No, Madam. No such report has been received from any State Government.

(e): The NITI Aayog study in the pilot districts revealed that diversion of fertilizers has reduced. However, the extent of diversion to non-agriculture activities has not been studied.
To address the 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 large rush at such points can be dealt with in a smooth manner without causing any inconvenience to the farmers and retailers.

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