Lok Sabha Question No. 4337 (UNSTARRED), answered on 2017-03-28
Subject: DBT Scheme
Ministry: CHEMICALS AND FERTILIZERS
Asked by: BHEEMRAO BASWANTHRAO PATIL, SANJAY JAISWAL

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA

UNSTARRED QUESTION NO. 4337 TO BE ANSWERED ON 28.03.2017

## DBT Scheme

## 4337    SHRI BHEEMRAO B. PATIL: DR. SANJAY JAISWAL:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) whether the Government has asked all fertilizer companies to deploy Point of Sale (PoS) devices covering all fertilizer retail stores in the country for a nation wide rollout   of  the  DBT  scheme  to  check  diversion  of  the  resources meant for the needy;

- (b) if so, the details thereof along with the funds allocated/ disbursed and utilized under the scheme during each of last three years, state-wise;

- (c) whether  the  Government  has  conducted  any  preliminary  analysis  on  the outcome of the Direct Benefit Transfer (DBT) pilot scheme in 16 districts as identified earlier; and

- (d) if so, the progress and success achieved so far in this regard?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF ROAD TRANSPORT & HIGHWAYS, SHIPPING AND CHEMICALS & FERTILIZERS AND

## ( SHRI MANSUKH L MANDAVIYA )

- (a) Yes,  Madam. The Government has asked all fertilizer  companies  to deploy Point of Sale (PoS) devices at all the retail points for acknowledging the receipt of fertilizers and for the purpose of issuing sale receipt to farmers.

- (b) The DBT system is only a modified subsidy payment system, where fertilizer companies will be paid 100 % subsidy only after sale of fertilizers to farmers/buyers by retailers through Point of Sale (PoS) machines provided at them with identification of buyers. No specific funds are required under the scheme as the subsidy will be paid from the allocated funds under the existing subsidy schemes.

- (c) & (d) Yes,  Madam.  NITI  Aayog  got  a  survey  conducted  through  M/s MicroSave  for  the  assessment  on  Aadhar  enabled  Fertilizer  Distribution  System (AeFDS) across 6 districts viz. Hoshangabad (M.P), Pali (Rajasthan), Una (Himachal Pradesh), Rangareddy (Telangana) and Krishna, West Godavari (Andhra Pradesh). The details of the findings are annexed.

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Annexure pertain to Rajya Sabha Unstarred Question No. 4337 dt. 28.-03-2017

1.      The assessment revealed that the fertilizer reforms such as neem coating urea and Aadhaar enabled Fertilizer Distribution System (AeFDS) have streamlined fertilizer distribution with retailers and farmers reporting no shortage of urea in the last 2 years.
2.      Due  to  improved  tracking  and  reduction in diversion, many retailers have left  the  system  viz.,  31  in  Pali,  51  in  Hoshangabad,  1  in  Rangareddy;  131  in Krishna;  35  in  Una;  50  in  West  Godavari.  It  is  also  believed  that  some  NPK complex factories in Krishna district have closed down as they were operating on diverted subsidised urea from retailers.
3.      Almost  all  retailers  have  confirmed  that  training  on  use  of  Point  of  Sale (PoS) Machines has been received and they have found it useful.
4.      Overcharging has also gone down as farmers get to see printed receipts with details of MRP and the subsidy paid by the Government.
5.      Most of the farmers got to know 'Aadhar' requirement only after their arrival at the retailer outlet.
6.      The time taken for each transaction has improved from about 10 minutes in their previous survey to about 5 minutes which compares favourably with manual transactions.
7.      The  number  of  attempts  for  Aadhaar  authentication  was  35%  in  one attempt, 39% in second, 19% in third attempt and 7% in fourth or more attempts. Although 93% are able to authenticate in three attempts, retailers felt that it could be an issue during the peak period.
8.      Overall  71%  farmers  and  64%  retailers  prefer  AeFDS  over  the  earlier method.  Retailers  also  find  relief  in  terms  of  less  need  for  book  keeping, automatic stock updation and other advantages.
9.      Farmers'  acceptance  of  Soil  Health  Card  (SHCs)  still  seem  to  be  low  as their immediate preference was profitability of ongoing crop.

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