Fertiliser companies to get subsidy after retail sale via PoS

The Dollar Business Bureau

Inching closer to launch the direct benefit of transfer (DBT) scheme in the fertiliser sector, the Government has taken a decision that from June onwards fertiliser subsidies will be paid to the manufacturers post-sale of soil nutrients through point of sale (PoS) machines at the retail stage.

The step will help in reducing the bill for fertiliser subsidy of the government by around 20% through plugging leakages and diversion. The Central government has provided more than Rs.70,000 crore as payment for subsidies in the current fiscal.

Currently, the payment of subsidy is made to manufacturers after they provide the dispatch-from-plant or receipt -at-district.

“From the kharif season this year, the subsidy will be transferred to the company the moment fertiliser gets sold via the point of sale (PoS) machines,” Bharathi Sivaswami, Sihag, Secretary - Fertiliser told PTI.

The government has taken the decision to implement this system from the month of June in a phased manner after achieving success of ‘DBT in fertiliser sector’ - a pilot study which was conducted in seventeen districts all over the country.

It has also asked the companies for installing PoS devices by May 31 at around two lakh registered retail stores so that this new system of subsidy payment will begin from June.

On the system’s benefits, the secretary said, “We will have a complete track of the consumption pattern. It will be linked with soil health card and land record in next 3 years. So, when farmers come to buy fertiliser, he will be told what combination of nutrients he should buy given soil condition.”

The cost of installation of PoS devices will be borne by companies. In fact, the companies can spend the Rs.50 per tonne fund that government provides them for acknowledging the receipts of sale.