Lok Sabha Question No. 109 (STARRED), answered on 2026-02-06
Subject: Transparency and Effectiveness in Subsidy System
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Satpal Brahamchari

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

## LOK SABHA

STARRED QUESTION NO 109 TO BE ANSWERED

ON: 06.02.2026

## Transparency and Effectiveness in Subsidy System

- +*109: Shri. Satpal Brahamachari
- Will the Minister of CHEMICAL AND FERTILIZERS be pleased to state: (a)  whether  the  Government  is  aware  that  the  farmers  in  the  Sonipat  Lok  Sabha constituency are not getting the benefits of fertilizer subsidies, if so, the details thereof; (b) whether complaints have been received about the sale of low-quality or sub-standard fertilizers at some places in the said constituency, if so, the details thereof; (c)  the  amount  of  funds  allocated  and  disbursed  under  fertilizer  subsidy  in  the  said constituency from the financial year 2021 till date; (d) whether the Government is carrying out regular inspections, sample testing and taking action against erring sellers to ensure the quality of fertilizers, if so, the details thereof; and
- (e) the future action plan of the Government to make the subsidy system more transparent and effective in the interest of the farmers?

## ANSWER

## THE MINISTER OF CHEMICALS AND FERTILIZERS (SHRI JAGAT PRAKASH NADDA)

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- (a) to (e) : The Statement is laid on the table of the House.

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## STATEMENT  REFERRED  TO  LOK  SABHA  STARRED  QUESTION  NO.  109  FOR 06.02.2026  REGARDING  'TRANSPARENCY  AND  EFFECTIVENESS  IN  SUBSIDY SYSTEM'

- (a) Farmers of Sonipat Lok Sabha Constituency are getting subsidized fertilizers. The details of availability of fertilizer sale and sale to the buyer through Aadhaar authenticated PoS sale is as under:

(In MT)

| Fertilizer   | Availability   | Sale              | Present Stock   |
|--------------|----------------|-------------------|-----------------|
| Urea         | 2,69,100       | 1,21,215 1,47,886 |                 |
| 63,874       | 24,284         | 39,590            | DAP             |
| 17,479       | 3,424          | 14,055            | NPK             |
|              | 33,143         | 5,264 27,880      | SSP             |

- (b) Fertilizers are declared as an essential commodity under the Essential Commodities  Act,  1955  and  notified  under  Fertilizer  Control  Order,  1985.  State Governments are empowered to take action against persons involved in black-marketing/ overpricing,  as  per  provisions  of  EC  Act.  Any  complaints  received  at  Department  of Fertilizers level regarding black marketing/over-pricing of fertilizers is sent to concerned State Government to take appropriate action under Essential Commodities Act, 1955 and Fertilizer  Control  Order,  1985.  As  informed  by  Government  of  Haryana,  no  such complaints have been received about the sale of low-quality or sub-standard fertilizers at some places in Sonipat constituency.

(c) 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. The details of total funds allocated and expenditure incurred under the various fertilizer subsidy scheme is as under;

(Rs. In Crores)

| Financial Year   | Allocation   | Expenditure   |
|------------------|--------------|---------------|
| 1,38,527.30      | 1,31,229.50  | 2020-21       |
| 1,62,072.12      | 1,57,640.09  | 2021-22       |
| 2,54,798.93      | 2,54,798.93  | 2022-23       |
| 1,95,421.00      | 1,95,420.51  | 2023-24       |
| 1,77,129.50      | 1,77,129.50  | 2024-25       |
| 2,01,961.50      | 1,85,887.94  | 2025-26       |

(d) Fertilizers are declared as an essential commodity under the Essential Commodities  Act,  1955  and  notified  under  Fertilizer  Control  Order,  1985.  State Governments are empowered to take action against persons involved in black-marketing/ overpricing,  as  per  provisions  of  EC  Act.  Any  complaints  received  at  Department  of Fertilizers level regarding black marketing/over-pricing of fertilizers is sent to concerned State Government to take appropriate action under Essential Commodities Act, 1955 and Fertilizer Control Order, 1985. As informed by the State Government of Haryana, regular inspections are carried out by the Fertilizer Inspectors in Sonipat district. From 1 st  April 2025 to 31 st  January 2026, 152 fertilizer samples were drawn. Out of these, 03 samples were found non-standard, and action taken as per the Fertilizer Control Order, 1985.

(e) To  ensure  transparency  in  fertilizers  subsidy  disbursal  mechanism,  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 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 on no-denial basis. Fertilizer companies generate/submit weekly subsidy claims based on PoS-recorded sales, which are processed on First-InFirst-Out (FIFO) basis, subject to completeness of claims, with a view to ensuring effective monitoring,  timely settlement  and  efficient  fund  management.  Further,  for  digital management of fertilizer subsidy payments at a large scale, the Government has recently introduced an integrated e-bill system. This digital system is aimed at reducing manual and  paper-based  processes,  accelerating  the  payment  workflow,  and  enhancing transparency and accountability in the subsidy payment process.

Further, to make delivery of subsidized fertilizers more effective, the Government of  India  has  integrated  Meri  Fasal  Mera  Byora  (MFMB)  portal  of  the  Government  of Haryana with the Integrated Fertiizers Management System (iFMS) of Government of India with effect from 08.10.2025 to enable transparent and real-time fertilizer delivery to identified farmers. Under this system, farmers register their land details on the MFMB portal  of  the  State  Agriculture  Department.  For  land  registration,  Haryana  residents require  only  the  Parivar  Pehchan  Patra,  while  non-residents  can  register  using  their Aadhaar card. Upon successful registration, the farmer's land and personal details are automatically  transmitted  to  iFMS  within  about  30  seconds.  This  real-time  integration eliminates manual verification and duplication. Consequently, farmers become instantly eligible to receive subsidized fertilizers.

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