Fertilizer Subsidy Scheme 2021 | DBT in urea subsidy to farmers

Fertilizer Subsidy Scheme 2021: The Department of Fertilizers and the Ministry of Agriculture are planning to introduce DBT scheme in fertilizer subsidy, which can be announced in the budget of FY 2022. Currently, the central government manufactures fertilizers from time to time. The given amount is based through Aadhaar-certified point of sale (PoS) machines, which were introduced in the first phase of DBT from April 1, 2018.

Fertilizer Subsidy Scheme 2021

After the end of the fiscal year, the Center may finally turn to Direct Benefit Transfer (DBT) to provide fertilizer subsidy to farmers effective from FY 2022. As estimated by the Department of Fertilizers, on average, Rs. 5000 to Rs. 6000 per year as fertilizer subsidy is required to be transferred to each farmer. This amount is Rs. Will be in addition to 6000 under PM Kisan Samman Nidhi Yojana.

Who are the beneficiaries of DBT scheme for fertilizer subsidy

Centre’s annual subsidy on fertilizers is a little over Rs 70,000 crore. More than 14.6 crore farmers with an average agricultural size of 1.08 hectare are benefited. In addition to the better goal of subsidizing farmers with small land holdings who have little benefit under the current regime, the lump sum will discourage and reduce the unscientific use / unscientific use of fertilizer by large farmers.

Subsequently, this fertilizer subsidy scheme will provide direct benefit transfer of fertilizer subsidy to the farmers. Accordingly, this dbt in fertilizers will directly transfer urea subsidy to farmers and ensure fertilizer subsidy. In addition, the government. Will provide dbt for fertilizers to ensure supply of subsidized urea under fertilizer dbt rollout. The Cabinet Committee on Economic Affairs (CCEA) has approved this proposal for fertilizer subsidy reforms. Government’s primary focus. The task of fertilizers is to make DBT and provide sufficient quantity of urea to the farmers at low prices.

Urea subsidy scheme for farmers 2021

In April 2010 the subsidy component for P&K fertilizers was fixed and consequently the subsidy on these fertilizers was Rs. 41,500 crores in FY 2015. 26,369 crores in FY20. However, in this period the urea subsidy increased from Rs. 24,337 crores Rs. 54,755 crores Rs. While the production cost of gas-based urea is about Rs. 900 per 45 kg bag, at a discount of more than 70% to the farmers, is available for Rs. 242.

Earlier, the fertilizer ministry was considering introducing a system under which a farmer would have paid the market price and immediately received the subsidy amount in his Aadhaar-linked bank account. This idea was later mocked due to concerns that small-holding farmers may find it difficult to meet advance payments. Currently, the government makes fertilizers from time to time, based on Aadhaar-certified sales as a basis, issued through Point of Sale (PoS) machines, which are first in DBT 1 Started from April 2018.

Fertilizer Subsidy Scheme in Atmanibhar Bharat 3.0 Package

In the Atmanabir Bharat Scheme 3.0 announced on November 12, 2020, the Center has given Rs. Additional provision has been made. 65,000 crore for fertilizer subsidy scheme for FY 2021. It is more than Rs. 71,309 crore budget. This will ensure that the entire subsidy, including 48,000 crore arrears to fertilizer companies, will be cleared in the current financial year.

This is an unprecedented move, as a large part of the subsidy for any given year was released in the subsequent year, leading to liquidity problems for the fertilizer industry and a shortage of fertilizers in many parts of the country. Given the agitation over the farm bill, and the fact that the agricultural sector is proving to be a silver layer on the cloud of economic slowdown, the government cannot afford the scarcity of fertilizers in the rabi season.

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Soil Health Card to prevent overuse of fertilizers and pesticides

According to Nabard, there is a general tendency on the part of farmers to over-use fertilizers and pesticides expecting high yields, which can lead to an unnecessary increase in input costs. To address this problem, the Center has initiated an initiative to issue the Soil Health Card so that the farmer can balance the application of micronutrients, other fertilizers and pesticides. Unlike domestic LPG (LPG-Initiative) and food, where beneficiaries are defined and cash / kind is given directly to the beneficiary, the fertilizer subsidy is universal in nature and the manufacturer is paid the subsidy amount.

Harnessing the power of Jan Dhan, Aadhaar and Mobile (JAM), DBT in LPG-Initiative has saved Rs. 71,301 crore between FY 2015 and FY 2015, while DBT in food has saved a total of Rs 66,897 crore (largely due to the roll out of DBT-in-in-cash transfer due to the National Food Security Act Has not been done and there is concern that it may be deprived). Official data showed that the PoS system helped the Center save Rs 10,000 crore in fertilizer subsidies by preventing leakage up to FY14.

To see more details, visit the official website of the Department of Fertilizers https://fert.nic.in/fertilizer-subsidy

Benefit of Urea Subsidy Scheme / DBT in Fertilizer Subsidy to Farmers

The important features and salient features of this direct benefit transfer of fertilizer subsidy are: –

  • Direct transfer to the fertilizer subsidy scheme will help farmers to purchase urea at a discounted price.
  • CCEA approves implementation of direct benefit transfer – DBT scheme in fertilizer subsidy to properly distribute fertilizer subsidy directly to farmers.
  • This direct benefit transfer to the fertilizer subsidy scheme will reduce diversion and plug leaks as well.
  • Government. Nationwide Fertilizer DBT is planning a rollout of the scheme to provide direct benefit transfer for fertilizers.
  • DBT fertilizer in fertilizers will ensure 100% payment to fertilizer companies to make fertilizers DBT under DBT scheme.

This continuation of the urea subsidy scheme will improve fertilizer subsidy to ensure supply of fertilizer subsidy to farmers.

Source / reference link: https: //www.fin Financialexpress.com/economy/dbt-scheme-for-fertiliser-subsidy-may-be-rolled-out-in-fy22/2174500/#:~::xt=In%20the%20stimulus% 203.0 %% 20%, 20%, 20%, 20%, 20%, 20% fiscal

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