Lok Sabha Question No. 2229 (UNSTARRED), answered on 2025-08-01
Subject: Allocation and Disbursement of Subsidy for Fertilizers
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri K Radhakrishnan

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA UNSTARRED QUESTION NO.2229 TO BE ANSWERED ON 01.08.2025

## Allocation and Disbursement of Subsidy for Fertilizers

## 2229. SHRI K RADHAKRISHNAN:

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

- (a) the total amount of subsidy allocated and disbursed by the Union Government for fertilizers during the last five years, year-wise;
- (b) the  details  of  the  major  types  of  fertilizers  for  which  subsidies  have  been provided; and
- (c) the  steps  taken  by  the  Government  to  ensure  timely  disbursal  and  proper targeting of the fertilizer subsidy to benefit farmers across the country, State-wise including Kerala?

## ANSWER

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

(a): The  details  of  total  amount  of  subsidy  allocated  and  disbursed  by  the  Union Government  for  fertilizers  during  the  last  five  years  (2020-21  to  2024-25)  are  as follows:

## (Amount in Crores)

| Financial Year   |   Amount Allocated |   Amount Disbursed |
|------------------|--------------------|--------------------|
| 2020-21          |             138527 |             131230 |
| 2021-22          |             162072 |             157640 |
| 2022-23          |             254799 |             254799 |
| 2023-24          |             197457 |             195421 |
| 2024-25          |             177130 |             177130 |

(b): Under the relevant policy framework of the Government, subsidy is provided for Urea and various NPK Complex Fertilizers including Di-Ammonium Phosphate (DAP), Muriate of Potash (MOP) and Single Super Phosphate (SSP). Further, subsidy is also provided  to  Non-Chemical  Fertilizers  such  as  Fermented  Organic  Manure  (FOM), Liquid  Fermented  Organic  Manure  (LFOM)  and  Phosphate  Rich  Organic  Manure (PROM).

(c): The Government has implemented a pan-India Direct Benefit Transfer (DBT) system to ensure the timely disbursal and proper targeting of fertilizer subsidy across the  country,  including  in  the  State  of  Kerala.  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'. Any beneficiary can purchase fertilizer on the basis  of  Aadhaar  authentication  across  the  country.  Additionally,  the  Government operates  the  Integrated  Fertilizer  Management  System  (iFMS)  to  enable  real-time monitoring of fertilizer movement, stock positions, and sales across the country. This system ensures effective monitoring and smooth execution of the subsidy mechanism. Fertilizer companies generate weekly subsidy claims based on actual sales through PoS devices, and the claims are processed and settled by the Department on a FirstIn-First-Out (FIFO) basis, enabling timely settlement and efficient fund management.

These  measures  ensure  timely  release  and  proper  targeting  of  fertilizer subsidies. All farmers, including those in Kerala, are supplied fertilizers at subsidized rates, and any farmer purchasing through authorized retailers directly avails the benefit of the Government subsidy.

*******