The Hindu Business Line : Fertiliser subsidy for cos only on actual delivery

New Delhi April 9 In order to maintain a tighter leash on the outgo of fertiliser subsidy and to ensure that it is available in all districts, the Government has decided that from this kharif season, subsidy payable to fertiliser manufacturers would be calculated on the basis of actual amount of material that has reached specified destinations, that is, the district-level stock points of the respective companies.

Till last fiscal, fertiliser subsidy was calculated on the basis of despatches made from factory gate, Fertiliser Ministry officials told Business Line.

From this year onwards, the producers would not be required to set up their own infrastructure or rent warehouses for their stocks, officials said, adding that some of their existing dealers could be turned into primary stock points for this purpose.

"There is apprehension among the fertiliser companies that this provision would require them to spend extra for warehousing as most of them do not have such facilities.

But one of the existing dealer's godowns could be converted into primary stock point.

In order to clear the confusion, the Ministry proposes to call a high-level meeting with the producers within a week," Ministry officials said.

Explaining the mechanism, officials said that if a company had more than one dealer in a district, it would have to tell the Ministry which one is the main dealer in the district and that would be the primary stock point for that district where all consignments have to reach.

"The companies can stock their products in the dealer's godowns and the dealer would be the custodian of the company's stocks," the officials said.

The Government would reimburse the entire cost of transportation from the factory gate to the district stock point and the material would be distributed from there. The entire system would be monitored online and the companies would have to enter the date of despatch from factory gate and the date of reaching the district stock point on the Web site set up by the Fertiliser Ministry (www.urvarak.co.in) . This would ensure that it becomes public knowledge that a particular amount is stocked in the godowns of a particular dealer.

"Once the companies enter the stock position on the Website, it is available to the public. Even the district administration can verify the stocks. The subsidy would be disbursed after the date of arrival of stocks and amount of material is entered into the site by the respective companies," the officials said.

More Stories on : Fertilisers | Cultivation | Agricultural Policy

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