The move will help reduce the government's fertiliser subsidy bill by up to 20 per cent
The move might save the exchequer around Rs 5,000 crore
Government plans to directly transfer the fertiliser subsidy to farmers and a pilot project for the same is also being considered in 20 districts. The Department of Fertilisers (DoF) is working on a road-map to capture the details of farmers so that sales data can be captured and subsidy can be transferred to farmers' accounts directly, according to a Parliamentary Standing Committee report. "The Department (DoF) is working closely with the Mission Directorate (DBT) to implement DBT in fertilisers," the report added. According to sources, the government is planning to conduct a pilot project in 20 districts for direct transfer of subsidy on phosphoric and potassic fertilisers to the farmers. The report has also added that districts of Gujarat and Odisha are being selected to go for pilot project. The government had allocated about Rs 73,000 for the fertiliser subsidy in the current fiscal. In fertiliser subsidy, the government has allocated Rs 38,200 crore for domestic urea and .
Doing so is politically tough for any government but there are sensible policy choices to streamline it