Lok Sabha Question No. 5558 (UNSTARRED), answered on 2026-03-27
Subject: Distribution of Fertilizers Subsidy  in Uttar Pradesh
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Mrs Ruchi Vira

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

## LOK SABHA UNSTARRED QUESTION NO. 5558 TO BE ANSWERED ON 27.03.2026

## Distribution of Fertilizers Subsidy in Uttar Pradesh

## †5558. Mrs Ruchi Vira:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state: (a)  whether the  Government has reviewed the effectiveness  and reach of fertilizer subsidy  distribution,  particularly  with  reference  to  marginal  farmers,  sharecroppers and  members  of  cooperative  societies  who  rely  on  subsidies  to  control  cost  of cultivation in Bijnor District, Uttar Pradesh, if so, the details thereof; (b)  the  details  of  digital  systems  and  verification  processes  implemented  by  the Government to link subsidy distribution with Point-of-Sale authentication, transaction verification and beneficiary identification; (c) the nature of coordination maintained by the Government with banks, agricultural departments and local institutions to resolve farmers grievances regarding authentication failures, payment delays and subsidies; and (d) whether the Government has evaluated that reforms in subsidy distribution have led to tangible improvements in transparency and affordability in the country, if so, the

- details thereof?

## 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 manufacturer/importer, on actual sales to the beneficiaries based on Aadhaar authentication through PoS devices installed at each retail shop.

All farmers including marginal farmers are being supplied fertilizers at the subsidized rates. Fertilizer companies generate/ submit weekly subsidy claims based on PoSrecorded 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.

Marginal  farmers,  sharecroppers  and  members  of  cooperative  societies  are already availing benefits of subsidized fertilizers from the Government of India through DBT system which is monitored by the State of Uttar Pradesh as per FCO, 1985.

(b): The  Direct  Benefit  Transfer  in  Fertilizers  is  being  implemented  through  the digital  platform  called  'Integrated  Fertilizers  Management  System'.  The  DBT  PoS application  runs  on  Point  of  Sale  (PoS)  device  which  has  inbuilt  L-1  fingerprint scanner. At the time of PoS sale, at first the Company and product quantity to be sold is  selected  at  PoS  level.  The  buyer  is  then  authenticated  via  Aadhaar  based authentication and fertilizer is sold to the farmer by the retailer. The sold quantity is mapped with the respective Units of Fertilizer Companies. A single DBT Bill on weekly basis is generated on the basis of PoS sale incurred across the Nation with respect of each Unit of a Fertilizer Company.

(c): The weekly DBT bills are processed and approved on iFMS for payment to respective fertilizer companies through PFMS. Department of Fertilizers has deployed a State-level Coordinator for each State to oversee the operational management of implementation of DBT in Fertilizers including coordination and resolution of technical issues with the help of stakeholders viz. State Governments, Fertilizer Companies and PoS vendors.

Coordination between Government of India and State Governments including the State of Uttar Pradesh is maintained by the following steps every season to ensure adequate and timely availability of fertilizers across 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,  D/o  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  the  online  web-based  monitoring  system  called  integrated  Fertilizer Monitoring 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)  Regular  Weekly  Video  Conference  is  conducted  jointly  by  DA&FW  and  D/o Fertilizers with State Agriculture Officials and corrective actions are taken to dispatch fertilizer as indicated by the State Governments. (d): Under DBT in Fertilizers, to ensure transparency, the invoice is delivered to the farmer  via  SMS,  containing  details  of  purchased  quantity  of  fertilizers,  net  MRP payable by the farmer and the subsidy borne by the Government of India. To ensure affordability  of  fertilizers,  Department  of  Fertilizers  implements  Urea  Pricing  Policy (UPP) for Neem Coated Urea and Nutrient Based Subsidy (NBS) for NPKS fertilizers, which are evaluated from time to time.

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