New Delhi, July 29 (KNN) Government is planning to roll out the much required Direct Benefit Transfer (DBT) for fertilizer subsidies by the end of current financial year for which the preparations are in full swing.

“Government has planned for National Roll Out of DBT for fertilizer subsidies by the end of current financial year. All the preparations for launch of DBT at National level including deployment of PoS machines are in progress as per National Roll Out Action Plan,” Minister of State for Road Transport & Highways, Shipping and Chemicals & Fertilizers, Mansukh L. Mandaviya, informed the Rajya Sabha.

The Minister also said that during last year, there were no reports of alleged diversion & smuggling of subsidized urea for non-agricultural purposes.  Also, the Minister states that in the current year, no report of diversion & smuggling has been received from any State Government.

Last year, the Economic Survey highlighted that even as the government spends Rs 73,000 crore annually, which is around 0.5% of the GDP – on fertiliser subsidy, almost 41% of urea is diverted to the industry or smuggled across borders to Bangladesh and Nepal.

Meanwhile, according to an industry expert, if government comes out with DBT to provide fertiliser subsidy directly to all the farmers in the country, that would save the government at least Rs 50,000 crore.

S K Aggarwal, Chairman, Vimal Organics Ltd, told KNN that DBT on Fertilizer Subsidy would not only save Rs 50,000 crore of the government’s money but would also check misuse of fertilizer for purposes other than agriculture. (KNN Bureau)