**Executive Summary**
This document is the response to Unstarred Question No. 956 in the Lok Sabha, regarding the supply of fertilizers. The question was raised by multiple members of parliament, scheduled to be answered on December 5, 2025. The document outlines the fertilizer subsidy scheme, measures to ensure availability, and actions taken against irregularities.
**Key Points / Main Content**
* **Nutrient Based Subsidy (NBS) Scheme:**
* 100% subsidy on various fertilizer grades under 'DBT in Fertilizers' is released to fertilizer companies based on actual sales to beneficiaries, authenticated via Aadhar through PoS devices.
* Fertilizers are supplied to all farmers at subsidized rates on a no-denial basis.
* Year-wise details of fertilizer subsidy provided by the Government under the NBS Scheme for the last three financial years:
* 2022-23: ₹86122.23 crore
* 2023-24: ₹65199.57 crore
* 2024-25: ₹52810.00 crore
* **Ensuring Availability and Affordability:**
* The Department of Agriculture and Farmers Welfare (DA&FW) assesses state-wise and month-wise fertilizer requirements in consultation with State Governments before each cropping season.
* The Department of Fertilizers allocates adequate quantities of fertilizers to States by issuing monthly supply plans and continuously monitors availability.
* The movement of all major subsidized fertilizers is monitored via the Integrated Fertilizer Monitoring System (iFMS).
* State Governments are advised to coordinate with manufacturers and importers to streamline supplies through timely placement of indents.
* Regular Weekly Video Conferences are held between DA&FW, the Department of Fertilizers, and State Agriculture Officials to take corrective actions for fertilizer dispatch.
* Distribution of fertilizers at the district/block/village level is managed by the concerned State Government.
* The Government implemented the Nutrient Based Subsidy Policy w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under NBS policy, P&K fertilizers are covered under Open General License (OGL).
* Special provisions for DAP: Rs. 3500 per MT to cover ‘Other Costs', GST component included in the MRP and provision for reasonable return @ 4% of net MRP (MRP-GST) have been extended to both imported and domestic DAP and imported TSP.
* **Preventing Irregularities:**
* 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 act against black-marketing, hoarding, and overpricing.
* No cases of fraudulent subsidy claims have been reported.
* Enforcement measures by the State Government in Uttar Pradesh during the current financial year (up to 28.11.2025): 2436 show-cause notices issued, 3018 licenses suspended/cancelled, and 197 FIRs registered.
**Impact Analysis**
**Stakeholder:** Fertilizer Companies
**Impact:** Receive 100% subsidy on various fertilizer grades based on actual sales to beneficiaries, authenticated via Aadhar through PoS devices.
**Action Required:** Ensure sales are accurately recorded via Aadhar authenticated PoS devices, comply with the Nutrient Based Subsidy policy and Open General License terms for P&K fertilizers.
**Stakeholder:** Farmers
**Impact:** Guaranteed access to subsidized fertilizers on a no-denial basis.
**Action Required:** Utilize Aadhar authentication at retail shops when purchasing fertilizers.
**Stakeholder:** State Governments (Specifically Uttar Pradesh)
**Impact:** Responsible for fertilizer distribution within the state at the district/block/village level. Empowered to act against irregularities.
**Action Required:** Coordinate with manufacturers and importers to streamline supplies. Continue enforcement measures against black-marketing, hoarding, and distribution malpractices.
**Stakeholder:** Department of Agriculture and Farmers Welfare (DA&FW)
**Impact:** Assessment of state-wise & month-wise fertilizer requirements in consultation with State Governments before each cropping season.
**Action Required:** Consult with all the State Governments and accurately assess the State-wise & month-wise requirements of fertilizers.
**Stakeholder:** Department of Fertilizers
**Impact:** Allocation of adequate quantities of fertilizers to States by issuing monthly supply plans and continuously monitors availability. Also, issues the Nutrient Based Subsidy policy.
**Action Required:** Accurately allocate adequate quantities of fertilizers to States and continuously monitor the availability.
Key Entities Referenced
Nutrient Based Subsidy (NBS) Scheme: A scheme providing subsidies for fertilizers based on nutrient content.
Department of Fertilizers: The department under the Ministry of Chemicals and Fertilizers responsible for fertilizer policy and management.
Essential Commodities Act, 1955: Act that declares fertilizers as essential commodities to prevent hoarding and price inflation.
Uttar Pradesh: Indian state that is the focus of the unstarred question regarding fertilizer supply, affordability, and irregularities.
Fertilizer Control Order, 1985: Order that provides for the regulation of the distribution, price and quality of fertilizers.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF FERTILIZERS
LOK SABHA
UNSTARRED QUESTION NO.956 TO BE ANSWERED ON 05.12.2025
Supply of Fertilizers
956. Shri Atul Garg:
Shri Rajesh Verma:
Dr. Lata Wankhede:
Smt. Shambhavi:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the total subsidy provided under the Nutrient-Based Subsidy (NBS) Scheme for
fertilizers during the last three financial years, with specific details regarding the
share allocated to Uttar Pradesh, year-wise;
(b) the measures being taken by the Government to ensure the availability, timely
supply, and affordability of fertilizers for farmers in Uttar Pradesh, particularly in
drought-prone and agrarian regions including steps to streamline supply chains and
prevent hoarding or price inflation, district-wise; and
(c) whether any cases of irregularities, mismanagement or fraudulent subsidy claims
related to fertilizer distribution have been reported in Uttar Pradesh and if so, the
details of such cases along with the corrective and punitive actions taken by the
Government to address them?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS & FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a): Under ‘DBT in Fertilizers’ system, 100% subsidy on various fertilizer grades is
released to the fertilizer companies on actual sales to the beneficiaries based on
Aadhar authentication through PoS devices installed at each retail shop. All farmers are
being supplied fertilizers at subsidized rates on no-denial basis. The year-wise details of
fertilizer subsidy provided by Government under the Nutrient Based Subsidy (NBS)
Scheme during the last three financial years are as follows:-2-
(Rs. in crore)
Financial Year Imported P&K Indigenous P&K Grand Total
2022-23 36032.56 50089.67 86122.23
2023-24 28929.57 36270.00 65199.57
2024-25 18800.00 34010.00 52810.00
Grand Total 83762.13 120369.67 204131.80
(b): Following steps are taken by the Government before every season to ensure
adequate and timely availability of fertilizers across the country including the State of Uttar
Pradesh:
(i) Before the commencement of each cropping season, Department of Agriculture
and Farmers Welfare (DA&FW), in consultation with all the State Governments,
assesses the State-wise & month-wise requirement of fertilizers;
(ii) On the basis of requirement projected by DA&FW, D/o Fertilizers allocates
adequate quantities of fertilizers to States by issuing monthly supply plan and
continuously monitors the availability;
(iii) The movement of all major subsidized fertilizers is monitored throughout the
country by an on-line web-based monitoring system called integrated Fertilizer
Monitoring System (iFMS);
(iv) The State Governments are regularly advised to coordinate with manufacturers
and importers for streamlining the supplies through timely placement of indents;
(v) Regular Weekly Video Conference is conducted jointly by DA&FW and D/o
Fertilizers with State Agriculture Officials and corrective actions are taken to
dispatch fertilizers as indicated by the State Governments.
(vi) Distribution of fertilizers within the State at district/block/village level is done by
the concerned State Government.
With regard to price control, the Government has implemented Nutrient Based
Subsidy Policy w.e.f. 01.04.2010 for Phosphatic and Potassic (P&K) Fertilizers. Under
NBS policy, P&K fertilizers are covered under Open General License (OGL) and
companies are free to import/manufacture these fertilizers as per their business
dynamics. The NBS subsidy is provided to manufacturer / importer on notified P&K-3-
fertilizers on its PoS sale during the season, depending on their nutrient content to ensure
availability of fertilizers to farmers. The volatility in international prices of key fertilizers
and raw materials is considered while fixing NBS rates for P&K fertilizers so that fertilizers
remain affordable to the farmers. NBS scheme is implemented on pan-India basis
including the State of Uttar Pradesh and no regional differentiation is made. Moreover, to
make DAP available at affordable price of Rs. 1350 per 50 kg bag, special provisions like
Rs. 3500 per MT to cover ‘Other Costs’ which includes costs incurred from factory gate
to farm gate, advantage / disadvantage due to increase / decrease in international prices,
provision for GST component included in the MRP and provision for reasonable return @
4% of net MRP (MRP-GST) have been extended to both imported and domestic DAP and
imported TSP over and above NBS subsidy for Rabi 2025-26 season to keep the prices
of fertilizers stable.
To ensure streamlined supply chains and prevent hoarding or price inflation,
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 black-marketing, hoarding and
overpricing, as per provisions of EC Act. Any complaints received at Department of
Fertilizers level regarding black-marketing, hoarding and overpricing of fertilizers are
forwarded to the concerned State Government to take appropriate action under Essential
Commodities Act, 1955 and Fertilizer Control Order, 1985.
(c): No cases of fraudulent subsidy claims have been reported. However, to curb other
irregularities such as black-marketing, hoarding, and distribution related malpractices, the
State Government has undertaken various enforcement measures. These include the
issuance of 2436 show-cause notices, suspension/cancellation of 3018 licenses, and
registration of 197 FIRs in Uttar Pradesh during the current financial year (up to
28.11.2025).
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