Under the Direct Benefit Transfer (DBT) system in fertilizers, which of the following statements accurately reflects the actual implementation mechanism?
Show answer & explanation
Correct answer: D
Explanation
Answer: Subsidies are paid to companies after the sale has taken place.
Explanation:
The Direct Benefit Transfer (DBT) system in the fertilizer sector differs from other schemes (such as LPG). Here, the subsidy is not transferred directly into the farmer's bank account; instead, it is disbursed to the fertilizer companies. Under this mechanism, a farmer purchases fertilizer from a retailer at a subsidized rate using a Point of Sale (PoS) machine. As soon as the Aadhaar-authenticated sale is completed, the data is recorded on the government portal in real-time. Only after this step does the government release the subsidy payment to the respective fertilizer company. The objective of this system is to curb the black marketing of fertilizers and to ensure that the benefits of the subsidy reach the genuine farmer.
Additional Points:
iFMS: The Integrated Fertilizer Management System is the online platform through which the entire process is monitored.
Nutrient Based Subsidy (NBS): This is a policy implemented for fertilizers other than Urea (specifically P&K).
Neem-Coated Urea: To prevent the industrial diversion and misuse of Urea, the government has made 100% Neem-coating mandatory.
Potential Exam Questions and Answers:
Question: Which document is used to verify a farmer's identity under the Fertilizer DBT scheme?
Answer: Aadhaar Card.
Question: Is the fertilizer subsidy deposited directly into the farmer's account?
Answer: No, it is disbursed to the companies after the sale has been processed through the PoS machine.