The direct benefit transfer of subsidy system is all set to be extended to the fertiliser sector in the State. A dry run of the system will get under way from June 1 ahead of the full implementation of the scheme from January 1 next year.
“The Centre had taken a decision to introduce the DBT for fertilisers across the country and the State government has accepted it and issued an order to this effect recently,” a top official in the Agriculture Department told The Hindu on Tuesday.
Come next month, farmers would have to produce their Aadhaar cards to buy fertilisers from cooperative societies or retail dealers. However, they can continue to buy the fertilisers at subsidised rates as the DBT for fertilisers will be slightly different from the system followed for LPG sale wherein the subsidy component is paid directly to the beneficiary’s bank account. Under the system to be followed in the fertiliser sector, the subsidy will be released to the fertiliser companies instead of the beneficiaries. This way, farmers would not have to pay the maximum retail price upfront as the subsidy component is high, the sources said.
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Under the system, Point of Sales (POS) devices are to be installed at the sales outlets, be it cooperative societies or private retail dealers. All purchases have to be billed on POS devices with details of the fertiliser, quantity and Aadhaar details of farmers.
The subsidy will be released to the fertiliser companies after the sale is made by the retailers to the beneficiaries. Aadhaar is being used to authenticate the identity of the farmer and ensure that the subsidy reached the targeted beneficiary. This would ensure that fertilisers are not diverted for non-agricultural purposes as the system would also keep track of the fertiliser movement and sale.
With fertilisers being heavily subsidised, the Centre is keen on ensuring that the subsidy reached the farmers directly. The move was also intended to curtail illegal trade practices in the fertiliser sector, the sources said. The Centre had already introduced the DBT for fertilisers on pilot basis in 16 districts across the country.
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In the long run, the system is also expected to check over or needless application of fertilisers as in the course of time, details of the land holding and the soil health cards (issued by Agriculture Department providing details of the nutrient content of the soil of a particular field and its fertiliser requirement) would be linked to the Aadhaar cards of farmers.
In Tamil Nadu, there are about 11,000 retail outlets, including cooperative societies, and all of them would be provided POS devices soon. The Agriculture Department has started providing training to fertiliser dealers to sensitise them on the modalities of the system.
The total demand for all fertilisers in Tamil Nadu is estimated to be about 25 to 27 lakh tonnes per annum for the kharif and rabi seasons.