Ministry of Chemicals and Fertilizers
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 Aadhar authentication through POS devices installed at each retail shop
Urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP)
Posted On:
25 JUL 2025 5:18PM by PIB Delhi
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 Aadhar authentication through POS devices installed at each retail shop. All farmers (including small, medium and large farmers) are being supplied fertilizers at the subsidized rates on no-denial basis. The details of total fertilizer subsidy provided by the Government from 2022-23 to 2025-26 (as on 21.07.2025) are as follows:
(Amount in Crores)
|
Financial Year
|
Subsidy Schemes
|
Grand Total
|
|
Imported
P&K
|
Indigenous
P&K
|
Indigenous
Urea
|
Imported
Urea
|
|
2022-23
|
36032.56
|
50089.67
|
127311.05
|
41365.60
|
254798.88
|
|
2023-24
|
28929.57
|
36270.00
|
102027.00
|
28193.94
|
195420.51
|
|
2024-25
|
18800.00
|
34010.00
|
103319.50
|
21000.00
|
177129.50
|
|
2025-26
(as on 21.07.2025)
|
3977.77
|
10404.59
|
30940.82
|
4006.70
|
49329.88
|
|
Grand Total
|
87739.90
|
130774.26
|
363598.37
|
94566.24
|
676678.77
|
With regard to urea fertilizer, urea is provided to the farmers at a statutorily notified Maximum Retail Price (MRP). The MRP of 45 kg bag of urea is Rs. 242 per bag (exclusive of charges towards neem coating and taxes as applicable). The difference between the delivered cost of urea at farm gate and net market realization by the urea units is given as subsidy to the urea manufacturer/importer by the Government of India. Accordingly, all farmers are being supplied urea at subsidized rates.
In respect of P&K Fertilizers, the Government has implemented Nutrient Based Subsidy Policy w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under the policy, a fixed amount of subsidy, decided on annual basis, is provided on subsidised P&K fertilizers depending on their nutrient content. Under this policy, MRP is fixed by fertilizer companies as per market dynamics at reasonable level which is monitored by the Government. Accordingly, any farmer who is buying these fertilizers is getting benefits of subsidy.
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’ since there is no defined beneficiary. Any Aadhar authenticated beneficiary can purchase fertilizer on the basis of Aadhaar authentication including poor and marginal farmers.
This information was given by the Union Minister of State for Chemicals and Fertilizers Smt Anupriya Patel in Lok Sabha in a written reply to a question today.
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MV/AKS
(Release ID: 2148437)