Apply for Direct Benefit Transfer for Fertilizer Subsidy

By | June 24, 2017

Fertilizer Subsidy Directly to Farmers Application

The government has introduced Direct Benefit Transfer (DBT) system for fertilizer subsidy given to farmers. The scheme is introduced since November 15, 2016, on the pilot basis in 16 districts in the first phase. After stabilization, it will be extended to all the states in 2nd phase.

DBT for Fertilizer Subsidy

Features of DBT for Fertilizer Subsidy

Under the scheme, the subsidy is released to the fertilizer producing company rather than beneficiaries after. It is done after the aadhar number of the farmer who has made the purchase is captured through a pint of sale machine. The difference amount between the actual price subsidized prices will be transferred to the bank account of the company.


This is to reduce diversification or smuggling of fertilizers.

The DBT scheme for fertilizer subsidy is not concerned with landholding by the farmer; the benefit of the scheme is available to all. Aadhar card identifies the farmer’s authenticity and it ensures that the subsidized fertilizer is provided to the beneficiary only.

The farmers won’t have to but fertilizers at the market price.
The Central government has to bear 1 whooping amount Rs. 70,000 crore towards the fertilizer subsidy.

The DBT in fertilizers subsidy has a robust system of identification for eliminating duplicate or fictitious beneficiaries. The fertilizer bags are capped on which the subsidy is payable.

The number of bags to be supplied under the scheme is based on a reasonable assessment considering specific fertilizer, the crop, and location where it is grown.

Direct cash transfer of fertilizer subsidy along with need coating urea would help check the pilferage of fertilizer for industrial use. Moreover, the farmers would receive an SMS on the purchase of fertilizer.

Famers are provided soil health card based on analysis of soil on their land and the nutrient mix in the fertilizer will be provided according to the report of the soil health card of the farmer.

The DBT for fertilizer subsidy scheme is aimed to plug the incidence of pilferage and to ensure that benefit meant for farmers goes to them only. It also focuses check leakage of funds.

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