This document summarizes the Indian Ministry of Chemicals and Fertilizers' response to Lok Sabha Unstarred Question No. 3362, addressed on August 8, 2025, regarding the benefits of fertilizer subsidies. The response, provided by the Minister of State, Smt. Anupriya Patel, addresses concerns raised by Shri. Sanatan Pandey.
The Ministry affirms that all farmers across the country can avail the benefit of subsidized fertilizers through Aadhar-based authentication when purchasing fertilizers through Point of Sale (PoS) machines. The response clarifies that subsidy payments are not based on increased production relative to installed capacity. Instead, subsidy payments are made to fertilizer manufacturing/importing companies based on actual sales recorded through PoS machines to beneficiaries. Therefore, the question of companies falsely reporting production capacity to avail higher subsidies does not arise. Finally, the response indicates that through Aadhar-based authentication, poor and marginal farmers can get maximum benefit of subsidies.
Key Entities Referenced
LOK SABHA: The lower house of the Parliament of India.
MINISTRY OF CHEMICAL AND FERTILIZERS: A ministry of the Government of India responsible for the chemical and fertilizer industries.
DEPARTMENT OF FERTILIZERS: A department under the Ministry of Chemicals and Fertilizers, Government of India, specifically focused on the fertilizer sector.
Shri. Sanatan Pandey: Member of Parliament who raised the unstarred question about benefits of fertilizer subsidy.
SMT. ANUPRIYA PATEL: Minister of State in the Ministry of Chemical and Fertilizers who provided the answer to the question.
Aadhar: A 12-digit individual identification number issued by the Unique Identification Authority of India.
PoS machines: Point of Sale machines used for authentication and distribution of subsidized fertilizers to farmers.
Fertilizers manufacturingimporting companies: Companies involved in the manufacturing or importing of fertilizers.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICAL AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO 3362 TO BE ANSWERED ON: 08.08.2025
Benefits of Subsidy on Fertilizers
3362: Shri. Sanatan Pandey:
Will the Minister of CHEMICALS ANS FERTILIZERS be pleased to state:
(a) whether the farmers are getting the expected benefits of subsidy on
fertilizers;
(b) if so, the details thereof;
(c) whether some companies adopted the trick of showing less production
capacity and availed huge subsidy on the basis of percentage of
production;
(d) if so, the details thereof along with the action taken by the Government in
this regard; and
(e) the steps taken by the Government to ensure that poor and marginal
farmers get maximum benefit of subsidies?
ANSWER
THE MINISTER OF STATE IN MINISTRY OF CHEMICAL AND FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a), (b) & (e) : All farmers in the country based on the Aadhar based authentication
can avail the benefit of subsidized fertilizers by purchasing subsidized fertilizers
through PoS machines.
(c) No. There is no incentive for subsidy payment on the basis of increased
production than the installed capacity. The subsidy is paid to Fertilizers
manufacturing/importing companies on the basis of actual sales through PoS
machines by the retailer to the beneficiary.
(d) : Question does not arise.
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