During the year 2016-17, Direct Benefit Transfer (DBT) system of fertilizer subsidy was introduced on pilot basis in 19 districts. Further, DBT system was rolled out in a phase wise manner across all States and Union Territories from September 2017 to 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 by the retailers to the beneficiaries. Sale of all subsidised fertilizers to farmers/buyers is made through Point of Sale (PoS) devices installed at each retailer shop and the beneficiaries are identified through Aadhaar Card, KCC, Voter Identity Card etc.
Under Aadhaar enabled Fertilizers Distribution System (AeFDS), it is mandatory for the retailers to sell subsidized fertilizers through PoS devices. The Fertilizer sales are monitored online through web based Integrated Fertilizer Management System (iFMS). A study conducted by NITI Aayog through M/s Microsave revealed that AeFDS has increased accountability of stakeholders including fertilizer manufacturers, wholesalers and retailers.
The NITI Aayog study in the pilot districts revealed that diversion of fertilizers has reduced. However, the extent of diversion of fertilizers for non-agriculture activities has not been quantified.
To address the peak season demand, the Agriculture Departments in all States/Union Territories have been advised to identify retail points where large rush of farmers is expected during peak season. State Governments have been advised to operationalize multiple sale counters with multiple PoS devices at such retail outlets so that large rush at such points can be dealt with in a smooth manner without causing any inconvenience to the farmers and retailers.
This information was given in a written reply by the Union Minister of Chemicals & Fertilizers, Shri. D.V.Sadananda Gowda in Lok Sabha today.