**Policy Summary: Transparency in Fertilizer Subsidy Disbursement and Enforcement Measures**
**Overview**
The Ministry of Chemicals and Fertilizers has reaffirmed its commitment to the transparent and accountable disbursement of fertilizer subsidies through the Direct Benefit Transfer (DBT) system. Since the system's inception in 2017-18, it has covered 14.72 crore beneficiaries. These initiatives aim to safeguard farmer interests, promote balanced fertilizer use, and curb illegal market activities.
**Financial Data and Metrics**
* **FY 2025-26 Allocation:** ₹2,01,961.50 crore.
* **Actual Expenditure (as of March 16, 2026):** ₹1,92,857.77 crore.
* **Beneficiary Reach:** 14.72 crore beneficiaries since 2017-18.
**Regulatory and Enforcement Framework**
To prevent hoarding, diversion, and black-marketing, fertilizers are classified as essential commodities under the **Essential Commodities Act (EC Act), 1955**, and the **Fertilizer Control Order, 1985**. State Governments are officially empowered to take enforcement actions against individuals involved in malpractices according to the provisions of the EC Act.
**Distribution Mechanism and Purchase Ceilings**
The sale of subsidized fertilizers is mediated through Aadhaar-based authentication via Point of Sale (PoS) devices at the retail level. To ensure equitable distribution and transparency, the following purchase limits and system upgrades have been implemented:
* **Monthly Ceiling:** 50 bags per buyer.
* **Seasonal Ceiling:** 300 bags per buyer.
* **System Upgrades:** The PoS application now displays a buyer's past purchase quantity against monthly and seasonal limits to provide real-time transparency during transactions.
**Contact Information and Metadata**
* **Responsible Officials:** Neeraj Kumar Bhatt, Shatrughna Prasad, and Amit.
* **Contact Email:** cmc.fertilizers[at]gmail[dot]com.
* **Release ID:** 2244395 (PIB Delhi).
* **Date of Release:** March 24, 2026.
Key Entities Referenced
Direct Benefit Transfer (DBT) system: The primary mechanism used for the transparent and accountable disbursement of fertilizer subsidies to beneficiaries since its inception in 2017-18.
Essential Commodities Act, 1955: The legal framework under which fertilizers are declared essential commodities, empowering authorities to take action against hoarding and black-marketing.
Fertilizer Control Order, 1985: The regulatory order under which fertilizers are notified to control their distribution and prevent malpractices.
Aadhaar: The biometric identification system used for mandatory authentication during the sale of subsidized fertilizers to farmers via Point of Sale (PoS) devices.
Ministry of Chemicals and Fertilizers :
Department of Fertilizers
Government Ensures Transparency in Fertilizer
Subsidy Disbursement through DBT
Government Highlights Strict Enforcement Measures to Curb
Fertilizer Hoarding and Black-Marketing
Posted On: 24 MAR 2026 2:49PM by PIB Delhi
The Government of India has reaffirmed its commitment to ensuring transparency and accountability in
the disbursement of fertilizer subsidies under the Direct Benefit Transfer (DBT) system. In a written reply
to a question in the Rajya Sabha today, Smt. Anupriya S. Patel, MoS Chemicals and Fertilizers, informed
that Direct Benefit Transfer (DBT) system, covered 14.72 crore beneficiaries since its inception in 2017-
18. For the current financial year 2025-26, the government allocated ₹2,01,961.50 crore for fertilizer
subsidies, with an actual expenditure of ₹1,92,857.77 crore recorded as of March 16, 2026.
The issues of hoarding, diversion and black-marketing, 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 said malpractices, as per
provisions of EC Act.
The sale of subsidized fertilizer to the farmer is mediated via Aadhaar based authentication through Point
of Sale (PoS) device installed at Retailer’s level. At present there is a monthly ceiling of 50 bags per
buyer, i.e. a total no. of 300 bags per season per buyer. The PoS application has been upgraded to display
the past purchased quantity by the buyer against the monthly and seasonal ceiling to introduce
transparency to the buyer.
These measures highlight the Government’s resolve to safeguard farmers’ interests, promote balanced
fertilizer use, and maintain accountability in subsidy disbursement.
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Neeraj Kumar Bhatt/Shatrughna Prasad/Amit
cmc.fertilizers[at]gmail[dot]com
(Release ID: 2244395) Visitor Counter : 208
Read this release in: Urdu , Marathi