A new system for payments of subsidy on fertilizers has been now proposed for induction by the Indian Govt as DBT (Direct Benefit Transfer). Under this system, the Importers and manufacturers of fertilizers in India will now be able to avail 100% subsidy on listed fertilizers, based on the actual sale made to end users of these fertilizers in India. The first phase of this system will be in a pilot run stage in selected districts(16) in India. AS this system stabilizes in pilot run stage the modified payment system of subsidies will be expanded in all states across the nation. The Government anticipates that with this new payment schemes of subsidies it can curb issues related to illegal operation related with urea.
The proposed DBT for release of fertilizer subsidy to fertilizer companies has no direct relation with landholding of the farmers. The fertilizers will be available to all on ‘no denial’ basis.