‘DBT in fertilizer subsidy different from that in LPG as beneficiaries and their entitlement is not clearly defined in fertilizer sector’
Updated: Feb 13, 2017 07:47:59am
‘DBT in fertilizer subsidy different from that in LPG as beneficiaries and their entitlement is not clearly defined in fertilizer sector’
New Delhi, Feb 13 (KNN) At present direct transfer of subsidy to beneficiaries like in LPG cannot be introduced in fertilizer sector as the beneficiaries and their entitlement is not clearly defined, Union Minister of State for Chemicals and Fertilizers, Shipping, Road Transport & Highways, Mansukh L Mandaviya has recently said.
The Direct Benefit Transfer (DBT) being implemented in fertilizer subsidy payment is slightly different from the normal DBT being implemented in LPG subsidy.
In a written reply in Rajya Sabha recently, the Minister had informed that under the DBT in fertilizer sector, the subsidy will be released to the fertilizer companies instead of the beneficiaries, after the sale is made by the retailers to the beneficiaries.
Multiple subsidized products, urea and 21 grades of Phosphatic & Potassic fertilizers have different subsidy rates.
The subsidy rate in respect of urea varies from company to company due to different production processes, energy efficiencies of plants, vintage etc, he explained.
As the amount of subsidy in some fertilizers, particularly urea is more than double the MRP, it will be a huge financial burden on the farmers to pay the MRP and subsidy upfront and receive the subsidy amount subsequently, he added.
The Minister informed that the pilot project to introduce DBT in Fertilizer Sector has been undertaken in 16 districts including Una, Kishangaj, Karnal, Kannur, Nasik, Raigar, Tumkur etc.
Meanwhile, KNN spoke to SK Aggarwal, Chairman, Vimal Organics Ltd, who said 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.
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