Lok Sabha Question No. 4960 (UNSTARRED), answered on 2022-04-01
Subject: DBT on Fertilizer Subsidy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Harsimrat Kaur Badal

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

## UNSTARRED QUESTION NO. 4960 TO BE ANSWERED ON: 01.04.2022

DBT on Fertilizer Subsidy

## 4960. SHRIMATI HARSIMRAT KAUR BADAL:

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

- (a) whether Direct Benefit Transfer (DBT) for fertilizer subsidy is being provided to farmers and if s0, the details thereof;
- (b) whether the Government has assessed that DBT on fertilizer subsidy is likely to adversely affect the availability and production of fertilizer in the country;
- the number of farmers who have been given DBT during last two years; and ()
- (c) if so, the details thereof;
- whether the Government has received complaints on alleged misuse of DBT by middlemen and if the details thereof? SO,

## ANSWER

## MINISTER OF STATE FOR CHEMICALS AND FERTILIZERS (SHRI BHAGWANTH KHUBA)

- (a): Sir, Department of Fertilizers has successfully implemented Direct Benefit Transfer system across all States/U.Ts by 1st March 2018. Under the fertilizer DBT system, 100% subsidy on various fertilizer  grades is released to the fertilizer companies on the basis of actual sales made to farmerslbuyers through Point of Sale (PoS) devices installed at each retail shop.
- (b) & (c): Two extensive & independent evaluation studies were conducted by NITI Aayog appointed agency 'Ms. Micro Save' . The highlights of the assessment made by Microsave are as under:
- Implementation of DBT System has streamlined the Fertilizer distribution. Retailers and farmers in all districts reported Nil shortage" of urea owing to neem coating:
- There is improved tracking through mFMS Id i.e Fertilizer companies have on-boarded untraceable retailers and co-operative depots on mFMS system to avoid delay in subsidy payments.
- iii. Overcharging by retailers has reduced as each fertilizer purchase by farmers is supported by a PoS machines indicating both MRP paid by the farmers and the subsidy component paid by the Government on the quantity of fertilizer purchased by the farmers.

- iv Cross border sale has also reduced e.g across border to Nepal and Bangladesh from Kishanganj:
- V The reports meant for relevant Stakeholders are available at https Ilww fertnicin: and WW urvaraknic in under Publicationsl Reports tab.
- (d): The number of buyers under DBT during the last two years is as follows:

| Yearwise buyer count of all fertilizer products   | Yearwise buyer count of all fertilizer products   | Yearwise buyer count of all fertilizer products   |
|---------------------------------------------------|---------------------------------------------------|---------------------------------------------------|
| SNo                                               | Year                                              |                                                   |
| 1                                                 | FY 2020-21                                        | 4,54,87,885                                       |
| 2                                                 | FY 2021-22 (upto 28.03.2022)                      | 6,69,80,127                                       |

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