Parliament Question: Assessment of Input Subsidy Regimes

GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE & FARMERS’ WELFARE DEPARTMENT OF AGRICULTURE & FARMERS’ WELFARE LOK SABHA UNSTARRED QUESTION NO. 2539 TO BE ANSWERED ON THE 04th August, 2026 ASSESSMENT OF INPUT SUBSIDY REGIMES 2539. SHRI ARUN BHARTI: Will the Minister of AGRICULTURE AND FARMERS’ WELFARE कृिष एवं िकसान क(cid:208)याण म(cid:253)ं ी be pleased to state: (a) whether the Government has made any comprehensive assessment of input subsidy regimes to align incentive structures with sustainable agricultural practices and nutrition security, if so, the details thereof; (b) the policy interventions introduced to rebalance subsidies currently skewed towards water intensive crops like rice and wheat toward millets, pulses and oilseeds production; (c) whether subsidy rationalization incorporates environmental cost considerations including soil degradation, groundwater depletion and air pollution from stubble burning, if so, details thereof; (d) the details of the support mechanisms designed to facilitate farmer transition from subsidy dependent conventional farming to market-oriented sustainable agriculture without income disruption; and (e) the manner in which the restructured subsidy architecture promotes climate-resilient farming, nutritional diversity and long-term agricultural sustainability under the Atmanirbhar Bharat vision for holistic rural prosperity? ANSWER MINISTER OF STATE OF AGRICULTURE AND FARMERS WELFARE कृिष एवं िकसान क(cid:208)याण रा(cid:186)य म(cid:253)ं ी (SHRI RAM NATH THAKUR) (a) to (e) The Government supports farmers by ensuring the availability of key fertilizers at affordable prices through price regulation and subsidy mechanisms. Government is implementing Nutrient Based Subsidy (NBS) Scheme w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under NBS policy, Maximum Retail Price of P&K fertilizers are decontrolled and companies are free to fix MRP as per their business dynamics at a reasonable level. Further, underUrea Subsidy Scheme, Govt ensures affordable urea availability to farmers by providing government subsidies covering production and freight costs, with urea sold at a fixed. The Government is promoting sustainable agricultural practices through the judicious and balanced use of fertilizers. The National Mission on Natural Farming (NMNF) was approved by the Union Cabinet on 25.11.24 to promote Natural Farming. The Mission strengthens agriculture practices with scientific agro ecological approaches for sustainability, climate resilience and safe food. Under the Mission, there is a provision for an Output Based Incentive of ₹4000/- per acre, per year to a farmer for 2 years (up to 1 acre per farmer). The incentive support is for farmers to practice Natural Farming, to train other farmers, upkeep of livestock, preparation of natural farming inputs or purchase of inputs from Bio-input Resource Centers (BRCs) etc. Organic farming is being promoted through Paramparagat Krishi Vikas Yojana (PKVY) and Mission Organic Value Chain Development for North Eastern Region (MOVCDNER) for the North Eastern States. Focus of the schemes is to form organic clusters, with preference to small and marginal farmers, to create a supply chain. Both schemes are implemented through States /UT Governments. Under PKVY, assistance of Rs. 31,500 per ha is provided over 3 years for promotion of organic farming. Out of this, assistance of Rs. 15,000 per ha is provided to farmers through Direct Benefit Transfer for on- farm /off –farm organic inputs. Under MOVCDNER, assistance of Rs. 46,500/ha is provided over 3 years for creation of Farmers Producer Organizations, support to farmers for organic inputs etc. Out of this, assistance @ Rs. 32,500/ ha is provided to farmers for off -farm /on –farm organic inputs under the scheme including Rs. 15,000 as Direct Benefit Transfer to the farmers. The Government is promoting production & productivity of Shree Anna under the National Food Security & Nutrition Mission (NFSNM). Under NFSNM–Shree Anna, financial assistance is provided to the States/UTs to all categories of farmers, including tribal, small and marginal farmers. The Mission supports demonstrations of crop production, distribution of certified seeds, Integrated Nutrient and Pest Management measures, and capacity building of farmers. The Government is also implementing the Centrally Sponsored Scheme on 'Mission for Aatmanirbharta in Pulses' since 11th October 2025, with the objective of increasing the production of pulses, with special focus on Tur, Urad and Masoor, promoting the production and availability of climate-resilient seeds for farmers, increasing the area under pulses cultivation, and promoting post-harvest storage and management technologies. National Mission on Edible Oil – Oilseedswas approved on 3rd October 2024, which is being implemented for a period of seven years from 2024–25 to 2030–31, with the objective of increasing domestic edible oil production and reducing import dependence. Further, the Mission for Integrated Development of Horticulture (MIDH), a Centrally Sponsored Scheme, has been under implementation since 2014–15 to promote the holistic growth of the horticulture sector covering fruits, vegetables, root and tuber crops, mushrooms, spices, flowers, aromatic and medicinal plants, coconut, cashew, and cocoa. These schemes collectively promote crop diversification by encouraging the cultivation of pulses, oilseeds, and horticultural crops. Under the Soil Health & Fertility Scheme, assistance is provided to States for promoting Integrated Nutrient Management through improving fertilizer use efficiency and promoting balanced nutrient application. Since inception of the scheme (2014-15), 26.18 crore Soil Health Cards have been generated. Fertigation is being promoted through micro-irrigation systems under the Per Drop More Crop (PDMC) Scheme. Fertigation enables the application of water-soluble fertilizers directly to the root zone through micro irrigation systems, ensuring precise and uniform nutrient delivery. This improves fertilizer use efficiency, reduces nutrient losses, and promotes judicious use of fertilizers. Since inception of the scheme (2014-15), 114.60 lakh hectares has been brought under micro-irrigation, benefitting about 100 lakh farmers. Further, as of the pre-monsoon 2026 assessment, the groundwater situation remains largely stable across the country. Out of 9,085 monitoring wells, 87.8% (7,977 wells) fall under the normal category. The Government is implementing the Central Sector Scheme on Crop Residue Management (CRM) to support the Governments of Punjab, Haryana, Uttar Pradesh and the NCT of Delhi in addressing air pollution caused by paddy stubble burning. Under the Scheme, financial assistance of 50% is provided to individual farmers for purchase of crop residue management machinery. Assistance of 80% is provided to eligible groups, for establishment of Custom Hiring Centres (CHCs). Financial assistance is also provided to the States and ICAR for undertaking Information, Education and Communication (IEC) activities to create awareness among farmers on crop residue management. The Scheme also promotes the use of ICAR-recommended crop residue management machinery for in-situ and ex-situ management. From 2018-19 till 29.07.2026, ₹4,550.451 crore has been released under the Scheme. Under the Scheme, more than 3.54 lakh crop residue management machines have been distributed to individual farmers and more than 43,508 CustomHiring Centres have been established. The sustained implementation of the Scheme has contributed to a significant reduction in paddy stubble burning incidents. In 2025, paddy stubble burning events reduced by 92.4% in Punjab, 94.9% in Haryana and 17.0% in Uttar Pradesh as compared to 2017. The Government is supporting the marketing of Natural Farming and Organic Farming products through Farmer Producer Organizations (FPOs). Under the Scheme for Formation and Promotion of 10,000 FPOs, 185 FPOs have been identified for promoting of natural and organic farming produce. In addition, under MOVCDNER, total 479 FPOs (427 unique FPOs and 52 extended FPOs) have been established, who are working for marketing of organic produce. *****