Has the Centre Provided Rs 49,330cr in Fertiliser Subsidies This Year?
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Synopsis
In a significant move to support farmers, the Indian government has allocated Rs 49,329.88 crore in fertilizer subsidies for the current financial year. This effort aims to ensure affordable access to essential fertilizers, benefitting farmers across all categories.
Key Takeaways
- Rs 49,329.88 crore allocated for fertilizer subsidies.
- Subsidies are provided under the DBT system.
- Urea and P&K fertilizers are included in the subsidy.
- Maximum Retail Price for urea is Rs 242.
- All farmers can access fertilizers on a no-denial basis.
New Delhi, July 25 (NationPress) The government has allocated Rs 49,329.88 crore as a subsidy for fertilizers purchased by farmers as of July 21 during the current financial year (2025-26), which commenced on April 1, according to data presented in Parliament last Friday.
Under the Direct Benefit Transfer (DBT) system, a complete subsidy on various fertilizer grades is issued to fertilizer companies based on actual sales made to farmers, verified through Aadhaar authentication via POS devices situated at each retail outlet.
Minister of State for Chemicals & Fertilizers, Anupriya Patel, stated in a written response to a question in the Lok Sabha that all farmers, regardless of size—small, medium, or large—are receiving fertilizers at subsidized rates on a no-denial basis.
The figures indicate that Rs 34,947.52 crore has been allocated as a subsidy for urea, while Rs 14,382.36 crore has been dedicated to Phosphatic and Potassic (P&K) fertilizers for the initial four months up to July 21.
Urea is supplied to farmers at a legally mandated Maximum Retail Price (MRP). The MRP for a 45 kg bag of urea is set at Rs 242 per bag, excluding charges for neem coating and applicable taxes. The difference between the farm gate cost of urea and the net market price received by urea manufacturers is compensated as a subsidy by the Central government.
Consequently, all farmers are receiving urea at subsidized rates, the minister confirmed.
Regarding P&K fertilizers, the government has been executing the Nutrient Based Subsidy Policy since April 1, 2010.
Under this policy, a predetermined subsidy amount is allocated annually for subsidized P&K fertilizers based on their nutrient content.
The MRP is established by fertilizer companies according to market conditions, which is overseen by the government. Therefore, all farmers purchasing these fertilizers benefit from the subsidy, the minister clarified.
The DBT system facilitates subsidy payments to fertilizer manufacturing and importing companies (excluding imported urea) based on actual sales recorded through POS machines by retailers to beneficiaries. The identity of buyers is verified through Aadhaar authentication.
Fertilizer sales are conducted on a ‘no denial basis’ as there is no defined beneficiary. Any Aadhaar-authenticated individual can purchase fertilizer, including poor and marginal farmers, the minister added.
Point of View
This substantial subsidy allocation reflects the government's commitment to agricultural sustainability and farmer welfare. It is crucial for maintaining food security and supporting economic growth in rural areas.
NationPress
26/07/2025
Frequently Asked Questions
What is the total subsidy provided for fertilizers this year?
The total subsidy provided for fertilizers as of July 21 is Rs 49,329.88 crore.
How does the Direct Benefit Transfer system work?
The DBT system releases subsidies to fertilizer companies based on actual sales to farmers, verified through Aadhaar authentication at retail points.
What types of fertilizers are included in the subsidy?
The subsidy covers urea as well as Phosphatic and Potassic (P&K) fertilizers.
What is the Maximum Retail Price for urea?
The Maximum Retail Price for a 45 kg bag of urea is Rs 242, excluding additional charges.
Who can purchase subsidized fertilizers?
Any Aadhaar-authenticated farmer, including small and marginal farmers, can purchase subsidized fertilizers.
