Lok Sabha Question No. 1053 (UNSTARRED), answered on 2025-07-25
Subject: Subsidy on Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Nalin Soren

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF FERTILIZERS

## LOK SABHA UNSTARRED QUESTION NO.1053 TO BE ANSWERED ON 25.07.2025

## Subsidy on Fertilizers

## 1053 : SHRI NALIN SOREN :

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) the details of subsidy provided by the Government for various fertilizers during each of the last three years and the current year, State/UT-wise and fertilizerwise;
- (b) whether the poor and marginal farmers have benefited from the subsidy provided on fertilizers and if so, the reaction of the Government thereto;
- (c) whether the Government proposes to provide subsidy on fertilizers directly into the accounts of farmers through Direct Benefit Transfer Scheme; and
- (d) if so, the date by which the Government is likely to take a final decision in this regard?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS (SMT. ANUPRIYA PATEL)

(a): Under  'DBT  in  Fertilizers'  system,  100%  subsidy  on  various  fertilizer grades  is  released  to  the  fertilizer  companies,  on  actual  sales  to  the  beneficiaries based on Aadhar authentication 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. The details of total fertilizer subsidy provided by the Government from 2022-23 to 2025-26 (as on 21.07.2025) are as follows:

## (Amount in Crores)

| Financial Year             | Subsidy Schemes   | Subsidy Schemes   | Subsidy Schemes   | Subsidy Schemes   | Grand Total   |
|----------------------------|-------------------|-------------------|-------------------|-------------------|---------------|
|                            | Imported P&K      | Indigenous P&K    | Indigenous Urea   | Imported Urea     |               |
| 2022-23                    | 36032.56          | 50089.67          | 127311.05         | 41365.60          | 254798.88     |
| 2023-24                    | 28929.57          | 36270.00          | 102027.00         | 28193.94          | 195420.51     |
| 2024-25                    | 18800.00          | 34010.00          | 103319.50         | 21000.00          | 177129.50     |
| 2025-26 (as on 21.07.2025) | 3977.77           | 10404.59          | 30940.82          | 4006.70           | 49329.88      |
| Grand Total                | 87739.90          | 130774.26         | 363598.37         | 94566.24          | 676678.77     |

-2-

(b): With regard to urea fertilizer, urea is provided to the 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 realization by  the  urea  units  is  given  as  subsidy  to  the  urea  manufacturer/importer  by  the Government of India. Accordingly, all farmers are being supplied urea at subsidized rates.

In respect of P&K Fertilizers, the Government has implemented Nutrient Based Subsidy Policy w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. 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 fertilizer 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.

(c) & (d): The DBT system entails payment of subsidy to the Fertilizers 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 Aadhar based authentication. Sale of fertilizer is being done on a 'no denial  basis'  since  there  is  no  defined  beneficiary.  Any  Aadhar  authenticated beneficiary can purchase fertilizer on the basis of Aadhaar authentication including poor and marginal farmers.

*******