**Executive Summary:**
This document addresses Lok Sabha Unstarred Question No. 3303 regarding the Direct Benefit Transfer (DBT) scheme for fertilizers. It outlines the scheme's implementation status, subsidy amounts transferred in Tamil Nadu over the last three years, measures for timely and transparent subsidy transfers, challenges faced, and the DBT's impact on fertilizer usage and crop productivity in Tamil Nadu. The DBT system entails subsidy payments to fertilizer companies based on actual sales through PoS machines to verified beneficiaries.
**Key Points / Main Content:**
* **DBT Implementation:**
* Subsidy is paid to fertilizer companies based on actual sales through PoS machines to beneficiaries.
* Buyer identity is verified through Aadhaar authentication.
* Sale of fertilizer is being done on a no denial basis.
* Subsidy claims are submitted weekly by fertilizer companies and processed on a First in First Out (FIFO) basis.
* DBT in Fertilizers is in kind, as buyers purchase fertilizers at a subsidized cost.
* **Rollout and Monitoring:**
* DBT system in Fertilizers was introduced in October 2016 in 17 pilot districts.
* Pan-India rollout started in September 2017 and completed in March 2018.
* A Project Monitoring Cell oversees DBT implementation.
* State Coordinators monitor ongoing DBT activities.
* **Implementation Challenges and Solutions:**
* Initial challenges in Tamil Nadu included internet connectivity issues, fingerprint recognition difficulties, and lack of awareness.
* These issues were addressed through awareness campaigns, pamphlets, and village-level meetings.
* OTP-based authentication is available for Aadhaar authentication in case of biometric failure.
* Internet connectivity at retail points has been strengthened, and alternatives to PoS devices are available.
* **Subsidy and Beneficiary Data:**
* Total subsidy paid during the last three financial years:
* 2022-23: ₹2,54,798.93 Crores
* 2023-24: ₹1,95,420.51 Crores
* 2024-25: ₹1,77,129.50 Crores
* Year-wise total number of beneficiaries in Tamil Nadu:
* 2022-23: 27,35,187
* 2023-24: 25,06,239
* 2024-25: 16,29,339
* **Impact on Agriculture in Tamil Nadu:**
* Positive impact on fertilizer distribution, agricultural production, and productivity.
* Real-time transaction tracking enhances transparency in fertilizer movement and availability.
* Farmers can purchase subsidized fertilizers, enhancing crop production and productivity.
**Impact Analysis:**
* **Fertilizer Companies:**
* Impact: Receive subsidy payments based on PoS sales to verified beneficiaries.
* Action Required: Submit weekly DBT bills based on PoS-based sales.
* **Farmers:**
* Impact: Purchase fertilizers at subsidized prices through Aadhaar-based authentication.
* Action Required: Utilize Aadhaar authentication for purchasing fertilizers; participate in awareness programs to understand DBT procedures.
* **Retailers:**
* Impact: Use PoS devices for sales and Aadhaar authentication.
* Action Required: Operate PoS devices, ensure internet connectivity, and assist farmers with authentication.
* **Government of India (Department of Fertilizers):**
* Impact: Manages and monitors the DBT scheme implementation.
* Action Required: Process DBT bills, oversee DBT activities through the Project Monitoring Cell and State Coordinators, and improve the system based on stakeholder feedback.
Key Entities Referenced
Direct Benefit Transfer DBT scheme: A government program for transferring subsidies directly to beneficiaries, specifically in the context of fertilizer purchases.
Ministry of Chemicals and Fertilizers: The Indian government ministry responsible for the chemical and fertilizer industries, overseeing the DBT scheme for fertilizers.
Tamil Nadu: A state in India, specifically mentioned as a region where the DBT scheme's implementation, challenges, and impact are being assessed.
PoS machines: Point of Sale machines used by retailers to record fertilizer sales and authenticate buyers through Aadhar, crucial for the DBT system.
Aadhar: A 12-digit unique identity number issued to all Indian residents, used for beneficiary verification in the DBT scheme.
Department of Fertilizers: The department under the Ministry of Chemicals and Fertilizers responsible for processing DBT bills and overseeing the implementation of the DBT scheme.
Project Monitoring Cell: A unit set up within the Department of Fertilizers to oversee the implementation of the Direct Benefit Transfer (DBT) scheme.
iFMS platform: Mobile and Desktop application used as an alternative of PoS devices in critical areas to ensure smooth implementation of DBT in Fertilizers
GOVERNMENT OF INDIA
MINISTRY OF CHEMICAL AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO 3303 TO BE ANSWERED ON: 08.08.2025
Direct Benefit Transfer Scheme
3303. Shri Tharaniventhan M S:
Will the Minister of CHEMICALS ANS FERTILIZERS be pleased to state:
(a) the current status of implementation of the Direct Benefit Transfer (DBT) scheme for
fertilizers, including the number of farmers covered in Tamilnadu
(b) the total amount of subsidy transferred directly to the farmers accounts under DBT in
Tamil Nadu during the last three years,
(c) the measures taken to ensure timely and transparent transfer of subsidies to eligible
farmers.
(d) the challenges faced in implementation of DBT alongwith the steps taken to address
them in Tamil Nadu, and
(e) the impact of DBT on fertilizer usage efficiency and crop productivity in Tamil Nadu?
ANSWER
THE MINISTER OF STATE IN MINISTRY OF CHEMICAL AND FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a) to (c) : The DBT system entails payment of subsidy to the Fertilizers
manufacturing/importing companies on the basis of actual sales through PoS machines by
the retailer to the beneficiary. The buyers identity is verified through Aadhar based
authentication. Sale of fertilizer is being done on a ‘no denial basis’. Any Aadhar enrolled
beneficiary can purchase fertilizer on the basis of Aadhaar authentication. Based on the PoS
based sales, subsidy claims are submitted by Fertilizers Companies as weekly DBT Bills to
Department of Fertilizers. These DBT bills are processed by Department of-2-
Fertilizers on ‘First in First out (FIFO) basis’. Therefore, at present the DBT in Fertilizers is
“in kind” as the buyer purchases Fertilizers at a subsidized cost. The total amount of subsidy
paid during last three financial years is at annexure. The year wise number of beneficiaries
of Tamil Nadu under ‘DBT in Fertilizers’ during last three financial years viz. 2022-23, 2023-
24 & 2024-25 is enclosed at annexure.
(d) : The Government of India introduced DBT system in Fertilizers with effect from October,
2016 in 17 pilot districts. Subsequently, pan India roll out of DBT started from September,
2017 and completed in March, 2018. A Project Monitoring Cell has been set up at Dept. of
Fertilizers to oversee implementation of DBT exclusively. State Coordinators have been appointed
across all States to monitor the on-going DBT activities. Implementation of the DBT in Fertilizer
required deployment of PoS devices at every retailer shop and training of retailers for operating PoS
device. Across the country, Lead Fertilizer Supplier (LFS) have conducted 19850 training sessions
till date. Approximately 3.41 Lakh PoS devices have been deployed across all States. Department
is continuously making efforts to improve the system based on the feedback received from various
stakeholders. In the initial phase of implementation of DBT some challenges were faced in Tamil
Nadu related to internet connectivity in rural and remote areas, difficulty with fingerprint recognition
of elderly farmers and lack of awareness among farmers etc. These issues have been already
addressed by conducting intensive awareness drives through campaigns, pamphlets and village
level meeting to educate farmers about DBT producers. Provision for OTP based authentication is
available for Aadhaar authentication of farmer in case of biometric failure. Strengthening of internet
connectivity at retail point and provision of alternatives of PoS devices viz. Mobile and Desktop
application of iFMS platform in critical areas have been made available to ensure smooth
implementation of DBT in Fertilizers
(e) The implementation of DBT in Tamil Nadu had a positive impact on fertilizer distribution and
agricultural production and productivity. Real-time transaction tracking has enhanced transparency
in fertilizer movement and availability, enabling timely interventions. The DBT system enables
farmers to purchase subsidized fertilizers at affordable prices, ensuring timely availability which in
turn enhances crop production and productivity.
******Annexure
Annexure referred to in reply to part (a) to (c) of Lok Sabha Unstarred Question
No 3303 for answering on 08.08.2025
I. Total subsidy paid during last three financial years:
Subsidy paid in Rs. Crores
Financial Year Grand Total
2022-23 2,54,798.93
2023-24 1,95,420.51
2024-25 1,77,129.50
II. Year wise total number of beneficiaries in Tamil Nadu under DBT in Fertilizers:
Financial year Total number of Beneficiaries
covered under ‘DBT in Fertilizers’
2022-23 27,35,187
2023-24 25,06,239
2024-25 16,29,339