What are the features of the DBT scheme introduced for the fertilizers? How it is different from the earlier subsidy transfer scheme?

To ensure better targeting and to eliminate leakages and corruption, the Department of Fertilizers had introduced a new model of the Direct benefit transfer (DBT) Scheme. As per the Direct Benefit Transfer Scheme for Fertilizers:

• The subsidy on various fertilizer grades shall be released to the fertilizer companies, on the basis of actual sales made by the retailers to the beneficiaries.
• Sale of all subsidised fertilizers to farmers/buyers will be made through Point of Sale (PoS) devices installed at each retailer shop and the beneficiaries will be identified through Aadhaar Card, KCC, Voter Identity Card etc.
• The quantity of each nutrient purchased, along with the farmer’s name and biometric or other authentication will be captured on the POS device linked to the Department of Fertilisers’ central server.
• Upon the farmer getting a printed receipt, and the sale transaction being recorded on the system, is the company eligible to receive the subsidy.

How it is different from the earlier scheme?

Under the scheme, the farmers/beneficiaries will continue to receive the fertilizers at subsidized prices in the market and the fertilizer companies will receive subsidy after the fertilizers are sold to farmers/beneficiaries by the retailers through Point of Sale (PoS) machines through biometric authentication.

In the earlier scheme of things the subsidy was paid to companies once their dispatched material had reached the railhead point or approved godown of a district

Topics: GS-III: Storage Transport and Marketing of Agricultural Produce Related Issues