Direct Benefit Transfer In Fertilizer Sector Explained

INTRODUCTION:-

Direct Benefit Scheme (DBT) was started in 2013 for the execution of the following below given points.

• To modify government delivery system simpler & faster flows of funds or information. 
• To safeguard precise targeting of the beneficiaries by checking reduplication & fraud. 
• This mission was shaped in the Planning Commission to implement the DBT programs. 
• It was placed in Cabinet Secretariat under Secretary (Co-ordination & PG). 
• The three enablers of DBT are Jan Dhan, Aadhar & Mobile. 

NEED OF DBT IN FERTILIZER SECTOR:-

• DBT will help to control leakage in fertilizer sector, which has about 40% of leakage & make subsidizations effective & targeted. 
• Central govt. control over this sector is high. This reduces administrative difficulty. 
• Government will be having a real time fertilizer monitoring system that will help to monitor the fertilizer supply chains. 
• As per the economic survey, it is ideal to introduce DBT in fertilizer sector with 

1) DBT should be given in cash
2) Biometrically Authenticated Physical Uptake (BAPU) - A confirming identity using Aadhar & physically taking sponsored goods.

EXCLUSIVITY OF DBT IN FERTILIZER SECTOR:-

• The fertilizer companies will be getting the subsidy directly rather than to the beneficiaries as given in LPG DBT scheme. 
• The subsidy given will vary with fertilizers & also from company to company. 

CHALLENGES OF DBT:-

• The beneficiaries & rights are not clearly defined w.r.t to fertilizer subsidy. 
• Before bringing DBT into action, there is a need of improving the subsidy structure in this sector which encourages the excessive use of urea & damages the soil health.

PROPOSALS:-

• To adjust the demand for urea, more agencies must be allowed to import urea & by giving more liberty in procurement decision, flexibility for the demand will be adjusted. 
• Securing long period supplies from places where energy prices are economical. For ex. agreement from Oman & Iran. 

The experimental project to introduce DBT in this sector has been undertaken in the below given 16 districts.

	Himachal Pradesh
Kishanganj
Hoshangabad	Madhya Pradesh
Karnal, Kurukshetra
Nasik, Raigarh	Maharashtra
Rangareddy
west Godavari	Andhra Pradesh
South 24 paraganas	West Bengal

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