The government said the Direct Benefit Transfer (DBT) system ensures subsidised fertilisers for all farmers on a 'no denial' basis, with subsidy released only after Aadhaar-authenticated sales are recorded through Point of Sale (PoS) devices.
The government on Friday said the Direct Benefit Transfer (DBT) system for fertilisers continues to ensure that subsidised fertilisers are supplied to all eligible farmers on a "no denial" basis, including tenant farmers, while a new framework for scientific fertiliser sales has now been rolled out across 56 identified districts in 22 states.
How the DBT System Works
Replying to a question in the Lok Sabha, Minister of State for Chemicals and Fertilizers Anupriya Patel said the fertiliser subsidy is released to companies only after actual sales to farmers are authenticated through Aadhaar-enabled Point of Sale (PoS) devices installed at retail outlets. The government said the DBT mechanism is aimed at identifying beneficiaries while ensuring transparency in subsidy delivery. Subsidy claims are generated weekly based on PoS-recorded sales and are processed electronically on a First-In-First-Out (FIFO) basis after verification of complete claims.
All fertiliser sale transactions are captured in real time through the Integrated Fertilizer Management System (iFMS), enabling timely monitoring and settlement.
Curbing Diversion and Ensuring Fair Sale
To promote equitable distribution and prevent diversion of subsidised fertilisers, the government has capped purchases at 50 bags per buyer per month, except in Jammu and Kashmir where the limit is 60 bags per buyer per season.
In the 56 pilot districts under the Framework for Fertilizer Sale, fertiliser distribution is being linked to the General Fertilizer Recommendation based on land area and crops sown, with bag limits decided by the respective states.
Ensuring Nationwide Availability
The minister said multiple measures are taken before every cropping season to ensure adequate fertiliser availability, including assessing state-wise requirements, allocating monthly supplies, monitoring movement through the iFMS platform, finalising imports in advance, coordinating with the Railways for timely transportation and working with state governments, manufacturers and importers to streamline supplies.
Support and Monitoring Mechanisms
The government also said Section 7 of the Aadhaar Act, 2016 provides alternative Aadhaar-based modes of authentication under the DBT mechanism for farmers facing genuine authentication difficulties.
It added that real-time monitoring of fertiliser dispatches, stock positions, rake movement and state-wise supply continues through the iFMS platform to ensure uninterrupted availability of subsidised fertilisers across the country.
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