After successfully implementing the direct benefit transfer (DBT) in LPG, the Union government is now eyeing the fertiliser sector to roll out the concept on a pilot basis to plug the leakages.

“We propose to introduce DBT on pilot basis for fertiliser in a few districts across the country, with a view to improving the quality of service delivery to farmers,” Finance Minister Arun Jaitley said.

The outlay for the Fertiliser Ministry has been reduced to ₹70,039 crore for 2016-17, down marginally from the 2015-16 revised estimate of ₹73,465.27 crore.

Placing emphasis on boosting soil health, Jaitley has provided ₹368 crore for National Project on Soil Health and Fertility.

Besides, 2,000 model retail outlets of fertiliser companies will be provided with soil and seed testing facilities during the next three years.

The fertiliser companies will also co-market city compost which increases the efficacy of chemical fertiliser.

A policy for conversion of city waste into compost has also been approved by the government under the Swachh Bharat Abhiyan.

However, the fertiliser industry expressed concern over the reduction in allocation as it would result in further build-up of arrears.

“There’s hardly any reference to the outstanding payments, which are to the tune of ₹45,000 crore since 2008,” said Satish Chander, Director-General of Fertiliser Association of India.

Also, referring to the pilot announcement on DBT, Chander said it would have no implication for the sector.

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