Now it is Rs 354 per MT for both private & institutional agencies
AMN / NEW DELHI
The government has approved the revision of Dealer’s Margin to rupees 354 per metric tonne to be paid uniformly for the sale of Urea. The revised rate will be effective from 1st April 2018. This dealer margin will be paid to Dealers and Distributors on the quantity sold through POS devices only.
Presently, the private agencies and Co-operatives are being paid Distribution or Dealer Margin at the rates rupees 180 per metric tonne for sales through private trade and rupees 200 per metric tonne for sales through institutional agencies.
Consequent upon decision of the Government to implement Direct Benefit Transfer (DBT) in fertilizer sector, demand for increasing the Distribution or 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 or Distributors across the country are likely to be benefited by the decision which would enhance their financial viability post DBT implementation. This step will entail an additional subsidy burden of rupees 515.16 crores per annum on the government.
