In the Budget for 2012-13, the finance minister had announced tracking the movement of fertilisers from retailer to farmers and linking part of subsidy payment to manufacturers to the sale of fertilisers to farmers by retailers. Under the extant dispensation, 85-90% of the subsidy amount (fixed amount on DAP and NP/NPK fertilisers and excess of cost over controlled MRP for urea) is paid to manufacturer on ‘receipt of material in district’. From November 2012, producers are to get subsidy payments only on confirmation of ‘receipt of fertiliser by the retailer’. Actual payments are, however, stuck as the department of fertilisers (DoF) has no money, having exhausted allocated funds. In the mid-year economic analysis of 2012-13, the finance ministry came out...
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Tag Archives: ‘Direct cash transfer (DCT)’
Cash transfers: Food for thought
The ‘Direct Cash Transfer’ (DCT) of funds into bank accounts of beneficiaries began this month in 20 districts. It will cover the entire country by April 2014. But food and fertiliser have been kept out of its ambit. There are complex issues to be sorted out, the Finance Minister has said, without really giving an indication as to when the rollout in these critical areas will actually take place. Payments are estimated to be Rs 3,20,000 crore annually. The scheme is being bandied as a revolutionary reform that will bring transparency, enhance reach, empower poor, improve fiscal deficit and reduce corruption. The implementation if done in a manner as contemplated — correct identification of beneficiaries, inclusion of all deserving persons,...
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