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Direct Benefit Transfer (DBT)

1.  Status of DBT in Fertilizers:

The Government has introduced Direct Benefit Transfer (DBT) system in Fertilizers w.e.f. October 2016. Under the fertilizer DBT system, 100% subsidy on various fertilizer grades is released to the fertilizer companies on the basis of actual sales made by the retailers to the beneficiaries. Sale of all subsidized fertilizers to farmers/buyers is made through Point of Sale (PoS) devices installed at each retailer shop and the beneficiaries are identified through Aadhaar Card, KCC, Voter Identity Card etc. Different States/U.T.s have been put on Go-Live mode w.e.f. 01.09.2017 and the Pan-India Roll out has been completed by March, 2018

A Project Monitoring Cell has been set up at Dept. of Fertilizers to oversee implementation of DBT exclusively.  24 State Coordinators have been appointed across all States to monitor the on-going DBT activities. Implementation of the DBT in Fertilizer Scheme 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 10878 training sessions till date. 2.26 Lakh PoS devices have been deployed across all States.

2. DBT Dashboards for various stakeholders.

After successful PAN-India Roll out, attention was devoted to the development of Dashboards/various reports for stakeholders as given below:

1.       Kisan Corner

2.       DOF/Movement Division

3.       States Agriculture Departments

4.       District Collector/District Agriculture Officer

5.       Fertilizer companies.

6.       Marketing Federation         

These dash-boards provide various reports, viz.,

  1. Fertilizer Stock position (overall and production):
    • at Ports
    • at Plants
    • in States
    • at District levels
  2. Proportionate requirement for the season and availability of stocks at various levels
  3.  ‘Top 20 Buyers’ List
  4. ‘Most Frequent Buyers’
  5. Retailers not selling fertilizers

DBT dash-boards can be accessed by general public by clicking the e-urvarak website of DOF (

3. Direct Cash Transfer to farmers: -

Direct Cash Transfer to farmers has been under discussion at various forum such as PMO, Cabinet Secretariat and Niti Aayog. A Committee of Secretaries headed by Cabinet Secretary has been setup to develop the broad contours of the DCT framework under which DCT to farmers can be implemented. The last meeting was held on 16.01.2020. The CoS inter alia has recommended to constitute a Nodal Committee to be co-chaired by Secretaries of Department of Fertilizers and Department of Agriculture, Cooperation & Farmers Welfare to formulate and implement Direct Cash Transfer in Fertilizers. Accordingly, a Nodal Committee has been constituted vide DoF’s OM no. 15011/21/2019 dated 1st June, 2020 to formulate policy relating to implementation of Direct Cash Transfer of Fertilizer Subsidy to farmers. The first meeting of Nodal Committee through Video Conference was held on 25.06.2020. The proceedings of the meeting have been circulated to the all concerned.

Further, vide notification dated 04.05.2020, Department of Fertilizers has constituted Working Group for Chintan Shivir for Direct Benefit Transfer to farmer (Direct Fertilizer Subsidy to farmers account instead of an industry) under the chairmanship of Hon’ble Minister for Chemicals and Fertilizers. The Working Group is tasked to Examine the feasibility of introducing a direct fertilizer subsidy transfer to farmers, Suggest methods to safeguard against huge price rise and Unavailability of fertilizers, Suggest the criteria of selection of farmers and their entitlement, Suggest the criteria for determining the amount of subsidy to be transferred to farmers’ accounts, Suggest the periodicity of subsidy transfer, Suggest any method to safeguard against negative effect on fertilizer industry and Suggest the actual mechanism of fund transfer.  First meeting of Chintan Shivir was held on 18th May 2020 and second meeting was held on 13th July 2020. The final report of the Working Group is under submission.

4. SMS to Buyers: -

The Department of Fertilizers (DoF) has implementation Short Message Services (SMS) to farmers for the sale of fertilizers to farmers in the Direct Benefit Transfer (DBT) project. Buyer will receive a receipt on his mobile through SMS on every purchase of fertilizers. Department of Fertilizers (DoF) has introduced SMS system on 30th September 2020 in PoS 3.1 version.

  • The SMS contains the details viz. Invoice no., retailer name quantity purchased, total amount to be paid and the subsidy borne by the Govt. of India. etc.
  • SMS module will be used to send periodic SMS to farmer about availability of fertilizer at retail outlet from where he purchased fertilizer last.
  • Farmer can get information about availability of fertilizer at any retail outlet by sending SMS to +917738299899 (by sending retailer id).