January 27, 2023
Riddhi Thakrar

Understanding What Is Fertilizer Subsidy Scheme (FSS)

To help farmers afford fertilizers, the government established the Fertilizer Subsidy programme. This programme was developed by the federal government to aid farmers by lowering the price of fertilizer.

In October 2016, the Indian government implemented the Direct Benefit Transfer (DBT) mechanism for fertilizers. Under the fertilizer DBT system, fertilizer firms receive a 100% subsidy on different fertilizer grades depending on actual goods sold to the beneficiary by the merchants.

Understanding the features of fertilizer subsidy scheme

When knowing about the features of a scheme, they are usually associated with the working and benefits of it which are provided to the farmer. So here are some features to know about the FSS:

1. The fertilizer won't be sold for more than the going rate on the market. Therefore, the farmers won't have to pay more.

2. Based on Aadhar card verification, every farmer is identified.

3. The farmer is in charge of determining how much and what he or she must purchase.

4. The government will provide the corporations the subsidies money immediately so they may buy fertilizer.

5. The subsidy money for the fertilizers the farmer bought will be sent to the fertilizer businesses' bank accounts when the farmer's Aadhar card has been properly verified.

Main government objective behind the fertilizer subsidy scheme

The Fertilizer Subsidy Scheme's primary goal is to give Indian farmers more leverage. With this plan, mediators' influence on fertilizer prices is to be lessened. In the past, middlemen used a split payment scheme to sell fertilizer at prices above those established by the government. Producers were burdened as a result, and also the intermediaries received unfair profits.

Since the producers would receive a 100% value following the verified purchase of fertilizers from the farmers, the adoption of this scheme completely digitizes the process. Additionally, it will guarantee that farm workers buy fertilizers at the appropriate prices. The government also will receive documentation of the farmers who received the subsidies.

Benefit of the scheme received to the farmers

The FSS is usually to benefit the farmers such that they get all the required fertilizers for their farm produce. So the following can be said to be beneficial for the scheme:

1. Each farmer's Aadhar card will be entered into a database that will be useful down the road.

2. Since there is no chance of fraud, fertilizer transactions will be transparent, making it simpler for farmers.

3. Under this programme, farmers may prioritize their choices because they can purchase items based on their requirements and financial constraints.

4. The value of the subsidy as well as the actual and genuine sales would be documented.

5. A record of farmers will be created through the digital payment platform, which financial institutions including banks can use to lend to them and help them.

Understanding about implementing the fertilizer subsidy scheme

The government sets the fertilizer subsidy in beforehand as per the Fertilizer Subsidy Scheme. Nevertheless, based on the commodity's worldwide price, the selling cost may change, which could affect sellers' expenses. The government provides fertilizer firms with subsidies, allowing them to sell the product for less money. Employing Point of Sale (PoS) devices deployed at retail locations, the government monitors transactions.

The PoS equipment placed at all major retailers are used to sell all subsidized fertilizers to farms or purchasers. Aadhaar cards are used to identify the farmers and recipients. A project control unit has been established by the department of fertilizers to manage just the DBT system's deployment.

The PoS equipment will store information on the purchaser, the moment of the transaction, land registry, the amount purchased, the soil conditions, the Aadhar number, including biometrics verification via the Aadhar card for each fertilizer purchase. When allocating subsidies, the information would be cross-referenced with both the Pradhan Mantri Kisan Samman Nidhi (PMKSN) information.

The value of the subsidy will be paid directly to the manufacturing businesses. The PMKSN Yojana will provide financial support to farmers, and this program's supplementary subsidized advantages will be available to them when they buy fertilizer.

There are also some technological advancements that are provided to the farmers which include SMS services for the FSS scheme. There are also some arrangements for the research centers which are hence helpful for all to work and function making the scheme very favorable for all the farmers who are benefited under it.


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