Fertilizer Sector reforms – NBS, bio-fertilizers, Neem coating, etc.

DBT scheme for fertilizer subsidies gets cabinet nod


Mains Paper 2: Governance | Important aspects of governance, transparency and accountability, e-governance- applications, models, successes, limitations, and potential

From UPSC perspective, the following things are important:

Prelims level: DBT policy

Mains level: Possible benefits of the decision.


Direct benefit transfer (DBT) for fertilizer subsidy payments

  1. The government has decided to implement direct benefit transfer (DBT) for fertilizer subsidy payments across India
  2. Government is seeking to prevent diversion of fertilizers for commercial use and generate data on the usage of the nutrients to help farmers
  3. The department of fertilizers has already rolled out the programme in most states,
  4. data from which shows that transaction time and alleged instances of overcharging by retailers have come down

It is different from cooking gas DBT transfer

  1. The DBT model for fertilizers, however, is slightly different from that for others such as cooking gas, in which the ultimate consumer gets the entitlement in their bank account
  2. That is because farmers cannot be forced to pay large amounts upfront on fertilizers and wait for reimbursement

Other important decision taken by the cabinet

  1. The cabinet also approved continuation of the urea subsidy scheme for three years till 2020 at an estimated cost of Rs1.64 trillion
  2. There will be no urea price hike till 2020, said the official statement
Notify of
Inline Feedbacks
View all comments