Direct Transfer of Fertilizer Subsidy - DBT
Q. Which of the following is/are true regarding Direct Transfer of Fertilizer Subsidy?
1) The DBT being implemented in fertilizer subsidy payment is same as DBT being implemented in LPG subsidy, where the beneficiary will directly get the subsidy in his/her bank account.
2) The proposed DBT for release of fertilizers will be for farmers with small land holdings only.- Published on 01 Dec 16a. Only 1
b. Only 2
c. Both 1 and 2
d. Neither 1 nor 2
ANSWER: Neither 1 nor 2
The Government has decided to introduce Direct Benefit Transfer (DBT) system for fertilizer subsidy payments.
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 DBT being implemented in fertilizer subsidy payment is slightly different from the normal DBT being implemented in LPG subsidy. Under the DBT in fertilizer sector, 100% subsidy on various fertilizer grades will be released to the fertilizer companies instead of the beneficiaries, after the sale is made by the retailers to the beneficiaries on submission of claims generated in the web-based online Integrated Fertilizer Monitoring System (iFMS) by fertilizer companies.
After implementation of DBT, it is expected that diversion/smuggling of fertilizers (especially urea) will be reduced to a large extent and the Government will save subsidy to great extent.
The proposed DBT for release of fertilizer subsidy to fertilizer companies has no direct relation with landholding of the farmers. The fertilizers will be available to all on ‘no denial’ basis.
