Lok Sabha Question No. 4773 (UNSTARRED), answered on 2026-03-20
Subject: Distribution of Fertilizer Subsidy
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Dr. M P Abdussamad Samadani

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

## LOK SABHA

## UNSTARRED QUESTION NO. 4773 TO BE ANSWERED ON 20.03.2026

## Distribution of Fertilizer Subsidy

## 4773. Dr. M P Abdussamad Samadani:

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

- (a) the manner in which the distribution of fertilizer subsidy through DBT (Direct Benefit Transfer) is successful;
- (b) the steps taken to address the shortage in availability of fertilizer to farmers;
- (c) the existing laws to control the use of harmful chemicals;
- (d)  the  measures  taken  by  the  Government  to  reduce  pollution  from  fertilizer manufacturing units; and
- (e) the quantum of remaining fertilizer subsidy arrears for farmers in Kerala?

## ANSWER

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

- (a): The Direct Benefit Transfer (DBT) in Fertilizers mechanism has been implemented. Under 'DBT in Fertilizers' system, 100% subsidy on various fertilizer grades is released to  the fertilizer companies, on actual sales of subsidized fertilizers to the beneficiaries based  on  Aadhaar  authentication  through  PoS  devices  installed  at  each  retail  shop. Accordingly, all farmers are being supplied fertilizers at the subsidized rates. Fertilizer companies generate/submit weekly subsidy claims based on PoS-recorded sales, which are processed in a chronological manner on a First-In-First-Out (FIFO) basis, subject to completeness of claims, with a view to ensuring effective monitoring, timely settlement and efficient fund management.
- (b): Following steps are taken by the Government every season for ensuring timely and adequate availability of fertilizers in the country:
- (i)     Before the commencement of each cropping season, Department of Agriculture and  Farmers Welfare  (DA&FW),  in  consultation  with  all  the  State  Governments, assesses the State-wise & month-wise requirement of fertilizers.

(ii)    On the basis of requirement projected by DA&FW, Department of Fertilizers allocates adequate quantities of fertilizers to States by issuing monthly supply plan and continuously monitors the availability.

(iii)   The movement of all major subsidized fertilizers is monitored throughout the country  by  an  on-line  web-based  monitoring  system  called  integrated  Fertilizer Management System (iFMS).

(iv)   The State Governments are regularly advised to coordinate with manufacturers and importers for streamlining the supplies through timely placement of indents.

(v)        The  distribution  of  fertilizes  within  the  State  at  district  level  is  done  by  the concerned State government.

(c): The Environment  (Protection)  Act,  1986  is  the  umbrella  legislation  providing  the Central Government power to take all necessary measures to protect the environment, including regulating, restricting, or prohibiting the handling of hazardous chemicals. Under the  provisions  of  the  Environment  Act,  1986,  Hazardous  Chemicals  (Manufacture, Storage and Import) Rules, 1989 has been notified by the Ministry of Environment Forest and  Climate  Change  (EFCC).  These  rules  focus  on  industries  that  deal  with  the manufacturing, storage, and import of hazardous chemicals. They aim to mitigate risks associated with chemical accidents and ensure safe handling and storage practices. The rules also outline the need for emergency plans and safety audits to prevent and respond to chemical accidents.

(d): The Ministry of Environment, Forests and Climate Change has notified effluent and emission  discharge  standards  for  fertilizer  industries  through  GSR  1607(E)  dated December 29, 2017. It is mandatory for all the fertilizer industries to operate only after receiving Consent to Operate from respective State Pollution Control Boards / Pollution Control  Committees.  It  is  mandatory  for  all  the  fertilizer  industries  to  have  adequate Effluent Treatment System and adequate Air Pollution Control System and to comply with the prescribed effluent and emission discharge standards. Central Pollution Control Board /  State  Pollution  Control  Boards  /  Pollution  Control  Committees  take  action  on  those industries that fail to comply with the notified effluent and emission discharge standards.

Central Pollution Control Board (CPCB) has issued directions to all 17 categories of  highly  polluting  industries  including  Fertilizer  industries  to  install  Online  Continuous Effluent / Emission Monitoring System (OCEMS) with real time data connectivity to CPCB. CPCB conducts  regular  inspections  of  the  industries  based  on  exceedance  alerts  of OCEMS or if OCEMS becomes offline. Based on the observations of inspections, CPCB takes action on the defaulter industries as per extant rules.

(e) :  Under the 'DBT in Fertilizers' system, 100% subsidy on various fertilizer grades is released  to  the  fertilizer  manufacturing/  importing  companies,  on  actual  sales  to  the beneficiaries  based  on Aadhaar authentication  through  PoS devices  installed  at  each retail shop.  Funds are not allocated or disbursed in a district-wise or constituency-wise manner.

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