The government has provided Rs 49,329.88 crore as subsidy on fertilisers bought by farmers as of July 21 during the current financial year (2025-26) that started on April 1, according to information tabled in Parliament on Friday.
Under the DBT (direct benefit transfer) system, 100 per cent subsidy on various fertilizer grades is released to the fertilizer companies, on actual sales to the farmers based on Aadhaar authentication of the buyers through POS devices installed at each retail shop.
All farmers, including small, medium and large farmers, are being supplied fertilizers at the subsidized rates on no-denial basis, Minister of State for Chemicals & Fertlisers Anupriya Patel said in a written reply to a question in the Lok Sabha.
While Rs 34,947.52 crore has been disbursed as subsidy on urea, a sum of Rs 14,382.36 crore has been provided as subsidy for Phosphatic and Potassic (P&K) fertilizers for the first four months till July 21 show, the figures show.
Urea is provided to farmers at a statutorily notified Maximum Retail Price (MRP).
The MRP of 45 kg bag of urea is Rs 242 per bag (exclusive of charges towards neem coating and taxes as applicable). The difference between the delivered cost of urea at farm gate and net market realisation by the urea units is given as subsidy to the urea manufacturer or importer by the Central government.
Accordingly, all farmers are being supplied urea at subsidised rates, the minister said. In respect of P&K fertilizers, the government has implemented Nutrient Based Subsidy Policy with effect from April 1, 2010.
Under the policy, a fixed amount of subsidy, decided on annual basis, is provided on subsidised P&K fertilizers depending on their nutrient content.
Under this policy, MRP is fixed by fertiliser companies as per market dynamics at reasonable level which is monitored by the government. Accordingly, any farmer who is buying these fertilizers is getting benefits of subsidy, the minister explained.
The DBT system entails payment of subsidy to the fertilizer manufacturing/importing companies (except imported urea) on the basis of actual sales through PoS machines by the retailer to the beneficiary. The buyer’s identity is verified through Aadhaar based authentication.
Sale of fertilizer is being done on a ‘no denial basis’ since there is no defined beneficiary. Any Aadhaar authenticated beneficiary can purchase fertilizer on the basis of Aadhaar authentication including poor and marginal farmers, the minister added.
