Direct Benefit Transfer – The Game Changer
Farmers always face the brunt of procedural hiccups, even now we have farmers in India who are living in the envious cycle of poverty where rays of hope have already been settled down. They are untouched by the subsidy schemes and benefits. To overcome this Department of Agriculture, Cooperation & Farmers Welfare, Ministry of Agriculture & Farmers Welfare, GOI has tweaked the DBT model for fertilizers so that there is no extra burden on farmers. Farmers will continue to get fertilizers at a subsidized rate and the government will pay subsidy to companies. Farmers will continue to buy fertilizer from the retailer at subsidized rate and the transaction details will be recorded on the Point of Sale (PoS) machines. The government has launched DBT for fertilizer across the country after the successful pilot project undertaken in 19 districts.
Payment Process (Approved by CGA)
Stakeholders
- Department of Fertilizer – Act as Nodal agency to oversee, coordinate, monitor and facilitate adequate support in implementation of DBT in all pilot districts
- State Government – To coordinate, monitor and facilitate adequate support in implementation of DBT in their State (District).
- Lead Fertilizer Companies – Reconcile all stock at District warehouse/ Product wise and update the same on mFMS website.
- District Consultants – Coordinate along with the nodal officer of each district/Lead Fertilizer Companies operating in that state for :
- Installation of Point of Sale (POS) Machines at retailer’s outlet.
- Capturing dealer and other representatives ‘Aadhaar’ data on POS Machine.
- Diligently conduct Dry run of DBT Pilot followed by full scale implementation.
Benefits
Issues
Conclusion
In spite of the challenges that it is facing today, the DBT will show a positive aspect in the long run. To generate budget saving and reduce leakages, corruption, eliminate middlemen, speed up the transfer of benefits to the deserved. DBTs can help in decreasing spillage as far as installments made to authorities keeping in mind the end goal to get true blue advantages.
By
Divya Bisht & Mohammed Shahrukh Qureshi
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