Fertilizer Subsidy Scheme – Direct Benefit Transfer in Odisha from 1 February 2018

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Agriculture Department, Odisha government is going to start Fertilizer Subsidy Scheme from 1 February 2018. Subsequently, govt. will provide Direct Benefit Transfer (DBT) to the retailers for the distribution of fertilizers to the farmers. Accordingly, this scheme will ensure that the subsidized fertilizers must reach only the selected beneficiaries / farmers.

Earlier the state govt. plan was to start DBT for subsidy on fertilizers on 1 January 2018. However, Point of Sale (PoS) devices were not delivered to the retailers on time. So the agricultural department delays this scheme for about a month.

The state govt. is going to launch this scheme through PoS machines on the shops of retailers. This scheme will ensure transparency in the distribution of fertilizers to the selected beneficiaries. This scheme will save a large amount of the government. Central government spends Rs. 70,000 crore per annum towards fertilizers.

Objectives of Fertilizer Subsidy Scheme

The main objectives of this scheme are as follows:-

  • The primary objective of the Fertilizer Subsidy Scheme is to ensure transparency for the sale of subsidized fertilizers.
  • For this reason, all the retailers must record the details of all the transactions in their PoS devices.
  • This Subsidy Scheme will restrict the illegal flow of fertilizers to the industries.
  • Moreover the state govt. is going to save a large amount of money towards subsidy.

Implementation of DBT Transfer

Beneficiaries have to verify their identity through bio-metric authentication (Aadhar based). Subsequently, all the details of the buyers of the fertilizers will get captured in retailer PoS devices.

DBT Cell, Dept. of Fertilizers, Ministry of Chemical and Fertilizers will ensure that all the given Point of Sale Machines which consists of latest S/W. In addition to this, retailers will have to update their stock book to enroll for the DBT Scheme.

Reason for Delay in Fertilizer Subsidy Scheme

The state govt. has delayed the start of this scheme from 1st Jan 2018 to 1 Feb 2018 due to following reasons:-
— Agricultural Dept. has selected total 11,680 retailers for sale of fertilizers out of which 6,174 retailers receives their machines.
— Govt. will implement this scheme only after the equipment of PoS devices on all retail shops and opening of bank account of farmers.
— Primary Agriculture Cooperative Society (PACS) and Large Area Multi Purpose Cooperatives Societies (LAMPS) were to distribute chemical fertilizers.
— However, cooperation dept. has provided PoS machines to only 913 societies till date.

Ministry of Chemical and Fertilizers will provide the remaining PoS machines to the retailers. Moreover it will take time to create the Retailer ID and to install the software. Accordingly, the state govt. will implement this scheme from 1 February 2018.

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