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LATEST NEWS UPDATES | Direct transfer, 2 lakh sale points: Big fertiliser subsidy reform rollout in June -Harish Damodaran

Direct transfer, 2 lakh sale points: Big fertiliser subsidy reform rollout in June -Harish Damodaran

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published Published on Mar 23, 2017   modified Modified on Mar 23, 2017
-The Indian Express

Under the proposed system, payment of subsidy is to be based on weekly settlement of claims from actual sales data captured on POS machines.

Buoyed by its landslide win in the recent Uttar Pradesh assembly elections, the Narendra Modi government has decided to fast-track the implementation of the direct benefit transfer (DBT) system for payment of fertiliser subsidy to farmers.

From the coming kharif season, beginning June, the Rs 70,000-crore fertiliser subsidy budgeted for 2017-18 will be disbursed to companies based on actual sales to farmers captured on point-of-sale (POS) machines installed at nearly two lakh retail points across India.

This would be a significant change from the current system, where firms are paid the subsidy on receipt of their fertiliser at the railhead point or any approved godown of a district. Prior to this, till October 2012, they were getting the subsidy on despatch of material from their respective factories.

“From kharif 2017 onwards, we are moving to disbursal of subsidy only after sale to the farmer takes place. The farmer’s identity will be verified through Aadhaar-based biometric authentication, voter ID or Kisan Credit Card. The sale transaction as well as buyer details would be captured in the POS machine installed at the retailer’s end and connected with a central server,” a Department of Fertilisers official told The Indian Express.

The proposed subsidy-post-sale system — as opposed to after receipt-at-district or despatch-from-plant — is already being implemented as a pilot scheme in 17 districts. They include UP Chief Minister Yogi Adityanath’s home district of Gorakhpur; Kishanganj and Begusarai (Bihar); Dhanbad (Jharkhand); Hoshangabad (Madhya Pradesh); Pali (Rajasthan); Nashik and Raigad (Maharashtra); Narmada (Gujarat); Krishna and West Godavari (Andhra Pradesh); Ranga Reddy (Telangana); Tumkur (Karnataka); Thrissur (Kerala); Karnal and Kurukshetra (Haryana); and, Una (Himachal Pradesh).

“We will have a nationwide roll-out of this system from June 1. Fertiliser companies have been given a deadline of May 31 for procurement and installation of POS machines at all the 1.98 lakh-odd registered outlets selling to farmers. All transactions thereafter will have to be done through POS machines in order to be able to claim subsidy,” the official said.

The proposed system’s biggest advantage is that it can track actual purchases by the final buyer. A farmer growing wheat or paddy may apply up to three 50-kg bags of urea, one bag of di-ammonium phosphate (DAP) and half-a-bag of muriate of potash (MOP) per acre. That requirement could be more — say, three bags urea and 1.5 bags each of DAP and MOP per acre — for potato and sugarcane.

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The Indian Express, 23 March, 2017, http://indianexpress.com/article/india/direct-transfer-2-lakh-sale-points-big-fertiliser-subsidy-reform-rollout-in-june-4581320/


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