21 Aug 2019

Launch of Phase-II of DBT in Fertilizer Subsidy

Source: Press Information Bureau

Recently the Union Minister launched the Phase-II of the Direct Benefit Transfer of Fertilizer Subsidy (DBT 2.0). The Department of Fertilizers (DoF) has implemented the Phase-I of Direct Benefit Transfer (DBT) system in fertilizer subsidy pan-India in Fertilizers with effect from March 2018. Presently the sale of all subsidised fertilizers to farmers/buyers are being 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.

The new Initiatives of DBT 2.0 are:

  • DBT Dashboards: In order to facilitate accurate information gathering and decision-making w.r.t. the position of requirement/supply/availability of various fertilizers at National, State and District levels, the DoF has developed various dashboards. These dashboards provide various reports regarding the Fertilizer Stock position at ports, plants, in the States, at District levels; Proportionate requirement for the season and availability of stocks at various levels; Top 20 buyers; Frequent buyers; Retailers not selling fertilizers etc. The reports would facilitate real-time monitoring of the availability and sale of fertilizers within each State/UT.
  • Multi-lingual facility and PoS 3.0 software: The Multi-lingual facility would provide Aadhar virtual ID option for registration, login and sale activity in DBT software. It would also have a provision for area-specific, crop-specific recommendations based on Soil Health Card (SHC) data. Further, it would capture sale to farmers, mixture manufacturers, planter association separately.
  • Desktop PoS Version: Keeping in view the various operational challenges viz. limited PoS vendors, rush of sales due to peak season etc. the department has developed a multilingual desktop version of PoS software as an alternative or added facility to PoS devices.

Difference between Phase one and Phase two

  • Phase-I DBT system in Fertilizers (DBT 1.0) envisaged the release of 100% subsidy on various fertilizer grades to the fertilizer companies on the basis of actual sales made by the retailer to the beneficiaries.  
  • The Phase-II of DBT will explore the feasibility of direct cash transfer to the farmer’s accounts.

Significance 

With the implementation of second phase of DBT, the system would become more transparent and the penetration of fertilizer subsidy would further be increased in the country