The Centre has approved the revision of dealer’s margin to Rs.354 per metric tonne to be paid uniformly to all dealers and distributors for the sale of Urea. The revised rate will be made effective from April 1, 2018. This dealer margin will be paid to the dealers on the quantity sold through point-of-sale (PoS) devices only, Ministry of Chemicals and Fertilizers, Government of India has said in a statement today.
Presently, the private agencies and co-operatives are being paid distribution and dealer margin for the sale of urea at the rates of Rs. 180 per metric tonne for sales through private trade and Rs. 200 per metric tonne for sales through institutional agencies in accordance with the notification dated June 18, 1999. Consequent upon decision of the Government to implement Direct Benefit Transfer (DBT) in fertiliser sector, demand for increasing the distribution/dealer margin was being consistently raised by the dealers and the fertiliser companies to ensure financial viability of dealers post DBT implementation, the Ministry has said.
Around 23,000 dealers and distributors across the country are likely to be benefitted by the decision which would enhance their financial viability post DBT implementation. This step will entail an additional subsidy burden of Rs. 515.16 crore per annum on the Government.