**Policy Summary: Fertilizer Subsidy Allocation and Disbursement (2020-2025)**
This policy summary addresses the allocation and disbursement of fertilizer subsidies by the Union Government of India from fiscal year 2020-21 to 2024-25, as detailed in Lok Sabha Unstarred Question No. 2229.
**Subsidy Allocation and Disbursement:**
The total amount allocated and disbursed for fertilizer subsidies over the past five years is as follows (in Crores):
* **2020-21:** Allocated: 138527.30; Disbursed: 131229.51
* **2021-22:** Allocated: 162072.12; Disbursed: 157640.08
* **2022-23:** Allocated: 254798.88; Disbursed: 254798.88
* **2023-24:** Allocated: 197457.18; Disbursed: 195420.51
* **2024-25:** Allocated: 177129.50; Disbursed: 177129.50
**Types of Fertilizers Subsidized:**
The subsidy program covers Urea, various NPK Complex Fertilizers (including Di-Ammonium Phosphate (DAP), Muriate of Potash (MOP), and Single Super Phosphate (SSP)). It also includes Non-Chemical Fertilizers such as Fermented Organic Manure (FOM), Liquid Fermented Organic Manure (LFOM) and Phosphate Rich Organic Manure (PROM).
**Measures for Timely Disbursal and Proper Targeting:**
The Government has implemented a Direct Benefit Transfer (DBT) system to ensure timely disbursal and proper targeting of fertilizer subsidies across the country. This system involves subsidy payments to fertilizer manufacturing/importing companies (excluding imported Urea) based on actual sales recorded through Point of Sale (PoS) machines. Buyer identity is verified through Aadhaar-based authentication, and fertilizer sales are conducted on a "no denial" basis, allowing any beneficiary to purchase fertilizer using Aadhaar authentication nationwide.
The Integrated Fertilizer Management System (iFMS) is used to monitor fertilizer movement, stock positions, and sales in real-time. Fertilizer companies generate weekly subsidy claims based on actual sales through PoS devices, and these claims are processed and settled by the Department on a First-In-First-Out (FIFO) basis. This process facilitates timely settlement and efficient fund management. All farmers are supplied fertilizers at subsidized rates when purchasing through authorized retailers.
Key Entities Referenced
K RADHAKRISHNAN: Member of Parliament who raised the question about fertilizer subsidies.
CHEMICALS AND FERTILIZERS: The ministry responsible for fertilizer policy and subsidies.
ANUPRIYA PATEL: Minister of State in the Ministry of Chemicals and Fertilizers, who provided the answer to the parliamentary question.
Kerala: A state in India specifically mentioned in the context of fertilizer subsidy disbursement.
Urea: A major type of fertilizer for which subsidies are provided.
NPK Complex Fertilizers: A group of fertilizers containing Nitrogen, Phosphorus, and Potassium, for which subsidies are provided.
Direct Benefit Transfer DBT: A system implemented by the government to ensure timely disbursal and proper targeting of fertilizer subsidy.
Integrated Fertilizer Management System iFMS: A system used for real-time monitoring of fertilizer movement, stock positions, and sales across the country.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO.2229 TO BE ANSWERED ON 01.08.2025
Allocation and Disbursement of Subsidy for Fertilizers
2229. SHRI K RADHAKRISHNAN:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the total amount of subsidy allocated and disbursed by the Union Government
for fertilizers during the last five years, year-wise;
(b) the details of the major types of fertilizers for which subsidies have been
provided; and
(c) the steps taken by the Government to ensure timely disbursal and proper
targeting of the fertilizer subsidy to benefit farmers across the country, State-wise
including Kerala?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a): The details of total amount of subsidy allocated and disbursed by the Union
Government for fertilizers during the last five years (2020-21 to 2024-25) are as
follows:
(Amount in Crores)
Financial Year Amount Allocated Amount Disbursed
2020-21 138527.30 131229.51
2021-22 162072.12 157640.08
2022-23 254798.88 254798.88
2023-24 197457.18 195420.51
2024-25 177129.50 177129.50-2-
(b): Under the relevant policy framework of the Government, subsidy is provided for
Urea and various NPK Complex Fertilizers including Di-Ammonium Phosphate (DAP),
Muriate of Potash (MOP) and Single Super Phosphate (SSP). Further, subsidy is also
provided to Non-Chemical Fertilizers such as Fermented Organic Manure (FOM),
Liquid Fermented Organic Manure (LFOM) and Phosphate Rich Organic Manure
(PROM).
(c): The Government has implemented a pan-India Direct Benefit Transfer (DBT)
system to ensure the timely disbursal and proper targeting of fertilizer subsidy across
the country, including in the State of Kerala. 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’. Any beneficiary can purchase fertilizer on the
basis of Aadhaar authentication across the country. Additionally, the Government
operates the Integrated Fertilizer Management System (iFMS) to enable real-time
monitoring of fertilizer movement, stock positions, and sales across the country. This
system ensures effective monitoring and smooth execution of the subsidy mechanism.
Fertilizer companies generate weekly subsidy claims based on actual sales through
PoS devices, and the claims are processed and settled by the Department on a First-
In-First-Out (FIFO) basis, enabling timely settlement and efficient fund management.
These measures ensure timely release and proper targeting of fertilizer
subsidies. All farmers, including those in Kerala, are supplied fertilizers at subsidized
rates, and any farmer purchasing through authorized retailers directly avails the benefit
of the Government subsidy.
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