The Centre has introduced the direct benefit transfer (DBT) for fertiliser subsidies from this month in seven small states and union territories including Delhi, a senior official said today.
Another 12 big states including Punjab, Madhya Pradesh and Andhra Pradesh are ready for the phase II launch next month and the target is to cover the entire country by January 2018, said the fertiliser ministry official.
The government bears about Rs 70,000 crore annually as fertiliser subsidy to provide cheaper nutrients to farmers.
The DBT being implemented in the case of fertiliser subsidy payment is slightly different from the normal DBT implemented in cooking gas subsidy.
"We have tweaked the DBT model for fertilisers so that there is no extra burden on farmers. Farmers will continue to get fertilisers at a subsidised rate and the government will pay subsidy to companies," the official told
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)