Centre hikes dealer margin on urea sale

By TheHindu on 29 Mar 2018

The Centre has revised the dealer's margin to ₹354 per metric tonne, to be paid uniformly to all dealers/distributors for sale of urea, effective from April 1.

This dealer margin will be paid to dealers on the quantity sold through POS devices only, an official statement said.

Presently, private agencies and co-operatives were being paid distribution/dealer margin for the sale of urea at the rates of ₹180 per metric tonne for sales through private trade and ₹200 per metric tonne for sales through institutional agencies in accordance with the notification dated June 18, 1999, it said.

The statement noted that consequent upon decision of the Government to implement Direct Benefit Transfer (DBT) in fertilizer sector, demand for increasing the distribution/dealer margin was being consistently raised by the dealers and the fertilizer companies to ensure financial viability of dealers post-DBT implementation.

Around 23,000 dealers/distributors across the country are likely to be benefited by the decision which would enhance their financial viability post-DBT implementation. This step would entail an additional subsidy burden of ₹515.16 crore per annum on the Government, it added.