Lok Sabha Question No. 362 (UNSTARRED), answered on 2017-07-18
Subject: Fertilizer Subsidy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: ANANT KUMAR DATTATREYA HEGDE

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

## LOK SABHA

UNSTARRED QUESTION NO.  362+ TO BE ANSWERED ON: 18.07.2017

## Fertilizer Subsidy

## 362+    SHRI ANANTKUMAR HEGDE:

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

- (a) whether  the  Government  had  decided  to  credit  the  subsidy  on  fertilizers directly to the bank accounts of the farmers;
- (b) if so, the date on which the said decision was taken;
- (c) whether the Government had completed the preparatory work in this regard and if so, the details thereof;
- (d) whether the said scheme has been deffered due to shortage of Point of Sale (PoS) machines; and
- (e) if  so, the time period of the delay along with the further delay likely to take place in the implementation of the said scheme?

## ANSWER

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

## (SHRI MANSUKH L. MANDAVIYA)

(a) & (b): No, Madam.  The  Direct  Benefit Transfer  (DBT)  scheme  being implemented in fertilizer subsidy is different from the traditional DBT schemes being implemented in schemes such as LPG. Under the proposed fertilizer DBT system, the  fertilizers  will  continue  to  be  available  to  farmers/beneficiaries  at  subsidized prices and 100% subsidy on the fertilizer grades shall be released to the fertilizer companies instead of the beneficiaries, 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.

(c) Implementation of the DBT Scheme requires deployment of PoS devices at every  retailer  shop,  training  of  retailers  for  using  PoS  device,  making  entry  of opening stock of subsidised fertilizers in the PoS device after tallying the physical opening  stock  with  the  opening  stock  in  iFMS  before  making  sales  transactions. The present status of the pilot project and action plan for nation-wide rollout of the scheme is as under:

- A  Project  Monitoring  Cell  has  been  created  in  the  Department  to  oversee implementation of DBT exclusively.
- Trainings to master trainers were completed and a national workshop was conducted by the Department.
- For Pan-India rollout 24 State Coordinators have been selected and posted in  different  states.  These  appointments  are  in  addition  to  the  existing  14 District Consultants posted in the pilot districts.
- The State Government of various States have appointed Nodal Officers at State and District levels for Pan-India Rollout of DBT.
- All  preparatory  activities  such  as  deployment  of  PoS  devices,  training  and sensitization of retailers is ongoing in all States.

(d) & (e): There is a delay in supply of PoS devices by the vendors. In order to expedite the implementation, the Lead Fertilizer Suppliers have been instructed to deploy the PoS machines by 31st July 2017. The scheme would be implemented after  the  completion  of  deployment  of  PoS  devices  at  all  retail  points  and sensitization of retailers.

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