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Agro-economic research functioning of direct benefit transfer (DBT) in fertilizer at retail point

By: Kumar, Parmod.
Material type: materialTypeLabelBookPublisher: Agricultural Situation In India Description: 79(4), Jul, 2022: p.33-40. In: Agricultural Situation In IndiaSummary: The Government of India has decided to move away from the present subsidy payment system by implementing DBT (Direct Benefit Transfer) under which the subsidy payment will be made direct to the fertilizer companies based on the actual sales at retailers’ end. Under DBT system, full subsidy on various fertilizer grades shall be released to the fertilizer manufacturers on the basis of actual sales made to the beneficiaries (mainly farmers) through Point of Sale (PoS) device. To sell the subsidized fertilizers to farmers, these PoS devices are distributed to all the retailers and the beneficiaries need to purchase fertilizers using Aadhaar card/ KCC/voter identity card, etc. for authentication at the point of sale. Under the DBT system, it is essential that the fertilizer companies will make the data entry on real time basis, especially with respect to movement of stocks within the district (district warehouse- wholesaler- retailer). The implementation of the direct benefit transfer scheme is aimed at preventing diversion of fertilizers for commercial uses and generating dat. –Reproduced
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Articles Articles Indian Institute of Public Administration
79(4), Jul, 2022: p.33-40 Available AR127808

The Government of India has decided to move away from the present subsidy payment system by implementing DBT (Direct Benefit Transfer) under which the subsidy payment will be made direct to the fertilizer companies based on the actual sales at retailers’ end. Under DBT system, full subsidy on various fertilizer grades shall be released to the fertilizer manufacturers on the basis of actual sales made to the beneficiaries (mainly farmers) through Point of Sale (PoS) device. To sell the subsidized fertilizers to farmers, these PoS devices are distributed to all the retailers and the beneficiaries need to purchase fertilizers using Aadhaar card/ KCC/voter identity card, etc. for authentication at the point of sale. Under the DBT system, it is essential that the fertilizer companies will make the data entry on real time basis, especially with respect to movement of stocks within the district (district warehouse- wholesaler- retailer). The implementation of the direct benefit transfer scheme is aimed at preventing diversion of fertilizers for commercial uses and generating dat. –Reproduced

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