Cabinet approves continuation of Urea subsidy via DBT

NEW DELHI: The Cabinet on Wednesday decided to continue urea subsidy to ensure adequate quantity of the fertiliser is available to farmers at controlled prices and to implement direct benefit transfer in the sector to reduce diversion and plug leakages.

“The Cabinet Committee on Economic Affairs, chaired by Prime Minister Narendra Modi, approved the proposal of Department of Fertilisers to continue urea subsidy scheme from 2017 up to 2020 at a total estimated cost of Rs 1,64,935 crore and implementation of DBT for disbursement of fertiliser subsidy,” the government said in a statement.

The Department of Fertilisers is rolling out DBT in the sector nationwide. “DBT would entail 100% payment to fertiliser companies on sale of fertilisers to farmers at subsidised rates. Therefore, continuation of urea subsidy scheme will facilitate the smooth implementation of DBT scheme,” it said.