Millennium Post

CCEA approves modification in fertiliser subsidy release method

Fertiliser companies will now get final subsidy reimbursement from the government on the basis of receipts produced by retailers of actual sale. The Cabinet Committee on Economic Affairs [CCEA] on Thursday approved modification in the procedure for release of fertiliser subsidy.

Accordingly, the CCEA approved ‘the payment of fertiliser subsidy to companies will be based on the receipt of fertilisers and the acknowledgement of receipts of fertilisers by the retailers’.

The acknowledgement of the receipt from the retailers, who are the last point of sale of fertilisers, will be tracked on the ICT enabled mobile fertiliser monitoring system [MFMS] and the fertiliser monitoring system [FMS], a statement said.

In case of urea, the government fixes the MRP and the difference between the MRP and production cost is reimbursed by the government in form of subsidy to the fertiliser companies. For phosphatic and potassic [P&K] fertilisers, MRP is free but the government has fixes the amount of subsidy.

According to sources, the government provides 85-90 per cent of the subsidy payment to the companies on the basis of certificate from statutory auditor certifying the sale of the crop nutrient. The balance is paid after state governments acknowledge the sale of fertilisers. After the modification in the payment method, the balance subsidy payment will now be released after the acknowledgement of the receipt from the retailers, they added.

The CCEA further approved that Department of Fertilisers will also be carrying out a pilot in 10 districts for information visibility on sale of fertilisers to the farmers. This project would also be tracked through ICT enabled tools and identification of the farmers will be done through the kisan credit card or Aadhaar number or bank account number or any other identification.
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