If government comes out with Direct Benefit Transfer (DBT) to provide fertiliser subsidy directly to all the farmers in the country, that would save the government at least  Rs 50,000 crore, said an industry expert.

Talking to KNN, S K Aggarwal, Chairman, Vimal Organics Ltd, 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. (Watch Video)

Recently, Chemicals and Fertilisers Minister Ananth Kumar has said that the government is working on the Direct Benefit Transfer (DBT) to provide fertiliser subsidy directly to all the farmers in the country. In 16 districts, our pilot project is going on. We have received positive reports so far.

Enthused by its success from pilot programme in 16 districts, the Centre is now planning to implement the direct benefit transfer scheme in the fertiliser sector to provide Rs 75,000 crore annual subsidy to farmers.

He was speaking on the sidelines of a National Fertiliser Ltd’s (NFL) event where a dividend cheque of around Rs 53 crore was handed over to the government.

He said that till next Kharif season, the government will compile all the data and analyse.

“The government will prepare plans for implementing the DBT in fertiliser sector, especially urea subsidy,” Kumar said, adding the annual fertiliser subsidy bill is around Rs 75,000 crore.

The minister said the implementation of DBT is challenging and difficult as 50 per cent of the farmers are not land owners.

Meanwhile, Economic Survey this year 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.

The Survey proposed direct transfer of fertiliser subsidy to farmers and a comprehensive reform package in the fertiliser subsidy to address the problems of leakages and skewed mix of fertiliser use. (KNN Bureau)