Question : DBT in Fertilizer Sector

(a) the details of the fertilizer companies providing fertilizers to the farmers across the country, State/UT-wise including Gujarat, West Bengal and Maharashtra;

(b) whether the Government has started providing subsidy through DBT to the fertilizer companies;

(c)if so, the details thereof and the reasons therefor;

(d) the details of the States/districts covered initially under this scheme;

(e) whether the criteria of subsidy through DBT in fertilizer sector is different from other sectors; and

(f)if so, the details thereof and the reasons therefor?

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

(RAO INDERJIT SINGH)

(a): A statement indicating the names of the fertilizer companies providing fertilizers to the farmers across the country, State/UT-wise including Gujarat, West Bengal and Maharashtra is placed at Annexure A.

(b) & (c): Yes, Madam. The Government has started providing subsidy through DBT to the fertilizer companies. Under the fertilizer DBT system, 100% of the due 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 will be identified through Aadhaar Card, Kisan Credit Card (KCC), Voter Identity Card etc.

(d): Department of fertilizers has implemented Direct Benefit Transfer System on a pilot basis w.e.f. 1.10.2016 in 17 districts (Details at Annexure B). The assessment of pilot in 17 districts was carried out by the Niti Aayog appointed agency ‘Microsave’. On the basis of positive feedback received on the implementation of pilot, different States/ UTs were put on Go-Live mode w.e.f. 01.09.2017 and the Pan-India Roll out was completed on 1st March, 2018 as per the details given at Annexure C.

(e) & (f): Yes, Madam. The criterion of subsidy through DBT in fertilizer sector is different from other sectors such as LPG. Implementation of DBT in Fertilizers, unlike other traditional DBT schemes is complex due to various reasons viz. no clear definition of beneficiaries and their entitlement, product-wise, company-wise, plant-wise variation of subsidy, inability of the farmers to pay market MRP upfront and then claim subsidy etc. Therefore, under DBT system in Fertilizers, the subsidy is released to the Fertilizer companies, instead of the beneficiaries on the basis of sales through PoS devices.


**********