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At a Glance
Introduction: ................................................................................................................................................. 3 Need for Accurate Demand Forecasts: ......................................................................................................... 3 Skewed Consumption Pattern: ..................................................................................................................... 3 Fertilizer Supply Chain: ................................................................................................................................. 4 Problems Faced by the Current System: ....................................................................................................... 4 Lack of Reliable Data at the Taluka Level:............................................................................................. 4 Lack of Transparency in Inventory Levels Beyond District Levels: ........................................................ 5 Non-Involvement of the Community: ................................................................................................... 5 The need for Direct Transfer of Fertilizer Subsidy: ....................................................................................... 6 Proposed Framework by Governments Task Force: .................................................................................... 6 Phase IInformation Visibility Till the Retailer: ................................................................................... 6 Phase IISubsidy Payment to Retailer: ................................................................................................ 7 Phase IIISubsidy Payment to Farmer: ................................................................................................ 7 Technology Requirements for Implementation of Direct Subsidy: .............................................................. 7 Direct Subsidy Transfer Story Beyond Paper: ............................................................................................. 7 Defining the Problem: ................................................................................................................................... 8 The Proposed Solution: ................................................................................................................................. 8 Youth Supported Survey & Data Collection: ................................................................................................. 8 Single Platform Fertilizer Tracking at the Wholesaler Level: ................................................................ 9 Conclusions: .................................................................................................................................................. 9
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Lowest Intensity Intensity (L) Region (kg) West 109.1 Arunachal 3 Pradesh Hingoli 26.7
Table 1.1. Per hectare use of fertilizer nutrients (N+P+K) at various hierarchical levels during 2010-11
There are various factors which influence the use of fertilizers. These include agro-climactic conditions like fertility of soil, infrastructural variables like irrigation, economic factors like price of inputs and outputs, etc. In view of the diversity in quantity and type of fertilizers used in various regions, distribution of the right type and quantity of fertilizers to the right places is essential.
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(f) There is no transparency in the process or results of data collection, recording or flow of information. Lack of Transparency in Inventory Levels Beyond District Levels: FMS only tracks the fertilizer levels till the first sale point and there is no data available to the public regarding either inventory levels at wholesaler levels or the movement of various fertilizers from rake point up to the retailer. This leads to hoarding, artificial scarcity and monopolistic malpractices like black marketing by local wholesalers, retailers as well as cooperative societies involved with fertilizer distribution. Lack of transparency in fertilizer movement also leads to leakages of subsidized fertilizers for industrial use causing losses to both the government exchequer as well as the farmers.
Non-Involvement of the Community: In the current system, farmers and local community in general are not in the decision making loop and arent consulted for their opinion on fertilizer usage patterns and demands. The process has been reduced to a mechanical consolidation of inaccurate data collected by the local babus who are usually hand in gloves with the malpractices of dealers and retailers.
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Phase IISubsidy Payment to Retailer: According to The Report, in this phase, fertilizer subsidy will be released to the retailer (instead of the manufacturer). The subsidy will be electronically transferred to the retailers bank account on receipt of fertilizer from the wholesaler. The effective implementation of this phase depends on the successful completion of Phase I. Phase IIISubsidy Payment to Farmer: The Report envisages subsidy disbursement to the farmers bank account directly based on Aadhar identification platform. This is proposed to be done electronically in real time with no practical time-lag between buying of fertilizer and transfer of funds.
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Urban youth, which is getting detached from the rural roots will become aware of the village life and associated problems, inspiring it to find innovative solutions for the same. The program would act as a forum to exchange ideas among youth from different backgrounds culminating into new collaborations for solving complex problems. Single Platform Fertilizer Tracking at the Wholesaler Level: The multi-platform inventory information upload proved too much for the current technological infrastructure to handle. This has created a bottleneck in transition to Phase II and III of the proposed direct transfer of fertilizer subsidy. To overcome this problem, we can have an interim Phase-I(a) wherein fertilizer movement and sales would be tracked down to the wholesaler levels. Since the problems of lack of technical knowledge and infrastructure is not as big an issue at the wholesaler level, update of buying and selling of fertilizer stocks can be done within the current technological capacities. Subsidy will be transferred to the wholesaler level on receipt of fertilizers, updating the data and verification with dealer level FMS data. Since, we are working at the wholesaler level, technical delays of a few days in verification and release of subsidy could be bore. This would help to iron out the systemic creases. The sales information of the wholesaler would implicitly give inventory information at the retailer level. This data would be consolidated and made available in the public domainin real time on a web portal and at monthly intervals in local newspapersto make the fertilizer movements transparent and help farmers to track availability of the desired fertilizers. This would help to plug fertilizer leakages, hoarding and artificial scarcity. A consolidated data can also be used to transport fertilizers from places of excess to necessity most efficiently. Since the number of wholesalers is much less than the retailers, this interim step would provide testing grounds for feasibility of uploading and maintaining a web portal of consolidated data in real time and correct technical glitches before rolling out on a larger scale. All along the Phase-I(a), an efficiently working system which allows multi-platform data upload from the retailers would be developed in the background without the pressure of delivering immediate results. Once this system is up and working, Phase-I(b) can be rolled out where the data upload and fertilizer transfer would take place at the retailer level. This could then be followed by Phase-II and III of Direct Cash Transfer to the retailer and end consumer levels.
Conclusions:
YSSDC along with adding a step in rolling out the direct cash transfer would improve fertilizer supply chain while blending effortlessly in the current long term ambition of the Government to develop worlds largest direct cash transfer system. Few advantages of the above approach are: (a) allowing a time cushion for nationwide Aadhar penetration (b) popularizing an online database of fertilizer availability with less chances of a crash-down (c) Involving youth in the process of agricultural development and direct cash transfer, thus an unforeseen level of transparency and collective effort. 9|Page
A Report By
Anukool Chavhan Founder Asmita Agribusiness Gujari Chowk, Pusad, Dist Yavatmal Maharashtra PIN 445204 Email: anukoolchavhan@gmail.com
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