**Executive Summary**
This document is an answer provided by the Minister of State in the Ministry of Chemicals and Fertilizers to Unstarred Question No. 2433 in Lok Sabha on February 13, 2026. The question concerned the sustainability of the fertilizer subsidy regime. The answer details the schemes in place and efforts to improve subsidy targeting.
**Key Points / Main Content**
* **Fertilizer Subsidy Schemes:**
* Urea is covered under the Urea Subsidy Scheme.
* Phosphatic & Potassic (P&K) fertilizers are covered under the Nutrient Based Subsidy (NBS) Scheme.
* Both schemes are Central Sector Schemes of the Ministry of Chemicals & Fertilizers with full budgetary support.
* Schemes have been made co-terminus with the Finance Commission and are being evaluated by NITI Aayog.
* **Direct Benefit Transfer (DBT) in Fertilizers:**
* Sale of subsidized fertilizers to farmers is based on Aadhaar-based authentication via Point of Sale (PoS) devices.
* Subsidy is paid to fertilizer companies based on DBT sale captured in the Integrated Fertilizers Management System (iFMS) in the form of weekly DBT bills.
* All farmers are supplied fertilizers at subsidized rates.
* **Haryana Initiative:**
* The Government of India has integrated Haryana's Meri Fasal Mera Byora (MFMB) portal with the Integrated Fertilizers Management System (iFMS) effective October 8, 2025.
* The integration aims to enable transparent and real-time fertilizer delivery to identified farmers.
**Impact Analysis**
**Stakeholder: Farmers**
* **Impact:** Subsidized fertilizers are available through Aadhaar-based authentication via PoS.
* **Action Required:** Provide Aadhaar authentication at the time of purchase at POS.
**Stakeholder: Fertilizer Companies**
* **Impact:** Receive subsidy payments based on DBT sales captured in the iFMS.
* **Action Required:** Ensure accurate recording of sales data in the iFMS.
**Stakeholder: Central and State Governments**
* **Impact:** Management of fertilizer subsidies aligned with the financial resource cycle.
* **Action Required:** Align Urea Subsidy scheme and NBS Scheme with the Finance Commission.
**Stakeholder: NITI Aayog**
* **Impact:** Involved in the evaluation of the Urea Subsidy Scheme and NBS Scheme.
* **Action Required:** Evaluate schemes to improve financial viability.
Key Entities Referenced
Ministry of Chemicals and Fertilizers: The primary ministry responsible for fertilizer policy and subsidy schemes.
Urea Subsidy Scheme: A scheme providing subsidies for Urea fertilizers.
Nutrient Based Subsidy (NBS) Scheme: A scheme providing subsidies for Phosphatic & Potassic (P&K) fertilizers.
Direct Benefit Transfer (DBT): Mechanism for transferring fertilizer subsidies directly to farmers.
Haryana: State where Meri Fasal Mera Byora portal is integrated with the Integrated Fertilizers Management System.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO. 2433 TO BE ANSWERED ON: 13.02.2026
Fertilizer Subsidy Regime
2433. DR. SHASHI THAROOR:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) whether the Government has reviewed the sustainability of the fertilizer subsidy
regime in view of the continued increase in subsidy outgo, including the recent
enhancement of nutrient based subsidies for phosphorus and sulphur
fertilizers for the rabi season 2025-26, if so, the details thereof; and
(b) whether the Government has examined proposals to improve subsidy
targeting, including reports on linking fertilizer subsidies to land holdings or
other eligibility criteria in order to reduce fiscal burden and diversion, if so, the
details thereof?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a): Urea is covered under Urea Subsidy Scheme and Phosphatic & Potassic (P&K)
fertilizers are covered under Nutrient Based Subsidy (NBS) Scheme. Both schemes
are Central Sector Schemes of the Ministry of Chemicals & Fertilizers, and are
provided full Budgetary support.
To align the public funded schemes with the financial resource cycle of Central
and State Governments, the Urea Subsidy scheme and NBS Scheme have been
made co-terminus with the Finance Commission and taken up for evaluation by NITI
Aayog.
(b): Under DBT in fertilizers, the sale of subsidized fertilizers to the famer is made to
the farmer on the basis of Aadhaar based authentication via Point of Sale (PoS)-2-
devices installed at each retail shop. The subsidy is paid to the fertilizers companies
on the basis of DBT sale captured in digital application called Integrated Fertilizers
Management System (iFMS), in form of weekly DBT bills. Accordingly, all farmers are
being supplied fertilizers at the subsidized rates.
Further, in the State of Haryana, to make targeted delivery of subsidized
fertilizers more effective, reduce fiscal burden and diversion, the Government of India
has integrated Meri Fasal Mera Byora (MFMB) portal of the Government of Haryana
with the Integrated Fertiizers Management System (iFMS) of Government of India with
effect from 08.10.2025 to enable transparent and real-time fertilizer delivery to
identified farmers.
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