Government revises Dealer's Margin to Rs.354 per MT of Urea for both Private Agencies and Institutional Agencies

Government of India has approved the revision of Dealer's Margin to Rs.354/MT to be paid uniformly to all Dealers/Distributors for the sale of Urea. The revised rate will be made effective from 01st April, 2018. This dealer margin will be paid to the Dealers on the quantity sold through POS devices only.

Presently, the Private Agencies and Co-operatives are being paid Distribution/Dealer Margin for the sale of urea at the rates of Rs. 180/- per metric tonne for sales through private trade and Rs. 200/- per metric tonne for sales through institutional agencies in accordance with the notification dated 18th June, 1999. Consequent upon decision of the Government to implement Direct Benefit Transfer (DBT) in fertilizer sector, demand for increasing the Distribution/Dealer Margin was being consistently raised by the dealers and the Fertilizer Companies to ensure financial viability of dealers post DBT implementation.

Around 23,000 Dealers/Distributors across the country are likely to be benefitted by the decision which would enhance their financial viability post DBT implementation. This step will entail an additional subsidy burden of Rs. 515.16 crore per annum on the Government.

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