Govt to pilot DBT in distributing fertiliser subsidy

Extending the Direct Benefit Transfer (DBT) to agro sector, Finance Minister Arun Jaitley said farmers in a few districts would receive fertilizer subsidy on their bank accounts on a pilot basis. 

“We have already introduced DBT in LPG (subsidy distribution),” Jaitley said while presenting the Union Budget for 2016-17 in Parliament on Monday.  “Based on this successful experience, we proposed to introduce DBT on pilot basis for fertiliser in few districts in the country with a view to improving quality of service delivery to the farmers,” he added. 

Out of the Rs 73,000 crore annual spend on fertilizer subsidy, Rs 38,200 crore goes to domestic urea, while Rs 12,300 crore is spent on imported urea. The remaining Rs 22,468.56 crore pays for decontrolled phosphoric and potassic fertilisers. Calling for a sweeping reform on fertilizer sector, the Economic Survey tabled last week urged introduction of DBT in distributing subsidies.