Q. With reference to fertilizer subsidy, consider the following statements:
Select the correct answer using the codes given below:
Q. With reference to fertilizer subsidy, consider the following statements:
Select the correct answer using the codes given below:
The correct option is C 1 and 3 only
Explanation:
Statement 1 is correct: Farmers buy fertilizers at MRPs (maximum retail price) below their normal supply-and-demand-based market rates or what it costs to produce/import them.
Statement 2 is incorrect: The subsidy goes to fertilizer companies, although its ultimate beneficiary is the farmer who pays MRPs less than the market-determined rates. Companies, until recently, were paid after their bagged material had been dispatched and received at a district’s railhead point or approved godown. From March 2018, a new direct benefit transfer (DBT) system was introduced, wherein subsidy payment to the companies would happen only after actual sales to farmers by retailers.
Statement 3 is correct: Anybody buying subsidized fertilizers is required to furnish his/her Aadhaar unique identity or Kisan Credit Card number. The quantities of the individual fertilizers purchased, along with the buyer’s name and biometric authentication, have to be captured on the PoS device. Only upon the sale getting registered on the e-Urvarak platform can a company claim subsidies, with these being processed on a weekly basis and payments remitted electronically to its bank account.
Explanation:
Statement 1 is correct: Farmers buy fertilizers at MRPs (maximum retail price) below their normal supply-and-demand-based market rates or what it costs to produce/import them.
Statement 2 is incorrect: The subsidy goes to fertilizer companies, although its ultimate beneficiary is the farmer who pays MRPs less than the market-determined rates. Companies, until recently, were paid after their bagged material had been dispatched and received at a district’s railhead point or approved godown. From March 2018, a new direct benefit transfer (DBT) system was introduced, wherein subsidy payment to the companies would happen only after actual sales to farmers by retailers.
Statement 3 is correct: Anybody buying subsidized fertilizers is required to furnish his/her Aadhaar unique identity or Kisan Credit Card number. The quantities of the individual fertilizers purchased, along with the buyer’s name and biometric authentication, have to be captured on the PoS device. Only upon the sale getting registered on the e-Urvarak platform can a company claim subsidies, with these being processed on a weekly basis and payments remitted electronically to its bank account.
